1. Haray, Rabie, and Varadi faced some key decisions when starting their company. The first decision was related to their product “The Earth Buddy”. These new entrepreneurs decided to have Roots Canada Ltd. distribute their product on the market. The decision paid off in the long run as “Earth Buddy” turned in a huge success. Soon after, they received an order of 500,000 from K-Mart in the United States. This forced operations to a large factory staffed by approximately 200 employees. With $1.8 million in sales after the first two quarters of the year, Earth Buddy was a hit. Their move towards a bigger operation could be considered a key decision because it gave them the opportunity to expand into larger consumer market north of the border. The third key decision was using the concept of an air pressured airplane and turning it into one of the most popular brands. Spin Masters saw an opportunity to be the pioneer in this area. …show more content…
Although Spin Masters has enjoyed some success with their products, there are decision errors and traps might be a problem for them in the future. From reading the article and additional research, it seems as though Spin Masters bases their decisions off instinct or hunches. The problem with the toy industry is the uncertainty of the market. It can be hard to predict what consumers want. Extensive research needs to be conducted in order to examine what consumers are looking for. Decisions should be calculated and finalized upon researched market data to ensure that future toys release will be successful. The toy industry also requires innovation. As the article states, customers get bored easily. The typical lifespan of a toy is 18 months. As a result, Spin Master revamps 70% of its toys. They need to differentiate their products from competitors and be as unique as possible. Technology could be a trap for future endeavours in this company. Technology is rapidly advancing and if Spin Masters can’t find a way to compete, they’ll fall