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MACROENVIRONMENT EXTERNAL ANALYSIS--Opportunities and Threats

Social Pressures

Opportunities: The global population is increasing which means that there are more and more consumers for the market. Moreover, nowadays parents are more concerned about how children's materials, particularly toys, positively affect to their children and the safety of products. Therefore, parents are willing to spend more money on toy in order to gain better quality.

Threats: The growth rate is predicted to constantly decrease in the following years, which means that the demand for toys falls even though the world population is growing. Moreover, "age compression" is anther problem that should consider carefully. Children do not just want toys but desire more technological and more adult-like products.

Economic Pressures

Opportunities: In most countries, household wealth is growing. Generally, people have more money to spend than before, which is good news to any manufacturers- including toy producers.

Threats: The sale of toys reduces because children prefer to have other products instead of toys.

Technological Pressures

Opportunities: New technologies greatly promote the development of toys, especially in electronic improvement. Furthermore, new technology improves the processes of manufacture.

Threats: Other new technological products, such as digital toys and cell phones, come into the traditional toy market, and take some consumers away from toy producers. The expectation for a variety of quality of products is much higher than before.

Competitive Pressures

Opportunities: The traditional large toy companies are losing their market because children do not like traditional toy anymore. As a new toy company, the company has a great opportunity to strive for a greater share of the market by offering some fashionable products.

Threats: There are many newly founded toy companies, so the company is facing a great deal of competition. Many toy producers from other countries are exporting their products into Canada as well.

Regulatory Pressures

Opportunities: The requirement for the quality and safety of toy products is constantly increasing by the law. Offering completely safe designs toy is a great opportunity for the company

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