Internal Environment Factors

Sound supply to demand

Mega Blok’s Inc. is second largest preschool toy manufactures in world. In 2014 company was given the
title of “world’s most famous company”. Most of the product lines are based on Age, playing
experience, product quality and low price. Mega Blok’s offer a wide range of products that represent the
company’s majority in market to sustain large consumer demands in over 100 countries. Recent years
have made this company one of the best mass producers in toy industries.

Innovation and Content

Toy industry is all about change of product with time and new trends. Product innovation is the main
driver of Mega Blok’s, where company spends more than 6 – 7 % of annual sales on toy development
and integrate licensed products. In last decade company has shown a major improvement in toy quality
and new product lines, collaborating with major toy brands like Barbie, Batman, Pokémon, Call of Duty
Collector Construction Sets, Assassin’s Creed Collector Construction Sets and Ferrari. In Stationery &
Activities, the Corporation launched new activities play sets, a new line of learning products and
extended its selection of writing instruments, boards and accessories.

Operational Efficiency

Mega Blok’s seeks to optimize its operational procedures and to produce for high demand company
balances its own manufacturing by outsourcing to third party supplier in chain. To make their product
line more effective, company produce according to the competitive local market. This analysis helps
company to decide product line quality, price range, and other factors related to product. These
procedures were first implemented in Montreal facility as a three year optimization program, leading
company to understand consumer demand in more extensive way.

Global Distribution

This attribute of Mega Blok’s Inc, makes this company one of the biggest toys exporter in the world.
With significant market share in construction toy Brand Company holds strong customer recognition in
United States of America and Canada. Maintain the company’s objective of “gaining additional shelf
space with existing retail customers and to penetrate new retail channels. Competing with international
market, company has come to significant growth and expansion. Mega Blok’s product line are sold over
100 countries in world, that are supported by own marketing, partnerships and distributorships.
According to sales report of 3rd quarter 2016, company has shown a 5% increase in sale compared to
2015 where company faces 6% decrease in net consolidated sales.

Consumer preferences and acceptance of new products

Mega Blok’s gives a significant preference to customer requirement, which makes company more
popular than other competitors in market. In continues appeal to its existing products and new
products, consumer preferences are taken in to consideration very carefully. Now days, toy industry is
changing and very difficult to predict. So company use different franchise concept to target certain age
group in short period of time. Mega Blok’s is in collaboration with some major brands to attract
customer e.g. Barbie, Batman Lego series, Call of duty construction toys, and other major brands to
target the market as per customer preferences.

External Environment Factors

Four Internal Environment Factor

Operational Efficiency

Mega Blok’s seeks to optimize its operational procedures and to produce for high demand company
balances its own manufacturing by outsourcing to third party supplier in chain. To make their product
line more effective, company produce according to the competitive local market. This analysis helps
company to decide product line quality, price range, and other factors related to product. These
procedures were first implemented in Montreal facility as a three year optimization program, leading
company to understand consumer demand in more extensive way.

Global Distribution

This attribute of Mega Blok’s Inc, makes this company one of the biggest toys exporter in the world.
With significant market share in construction toy Brand Company holds strong customer recognition in
United States of America and Canada. Maintain the company’s objective of “gaining additional shelf
space with existing retail customers and to penetrate new retail channels. Competing with international
market, company has come to significant growth and expansion. Mega Blok’s product line are sold over
100 countries in world, that are supported by own marketing, partnerships and distributorships.
According to sales report of 3rd quarter 2016, company has shown a 5% increase in sale compared to
2015 where company faces 6% decrease in net consolidated sales.

Consumer preferences and acceptance of new products

Mega Blok’s gives a significant preference to customer requirement, which makes company more
popular than other competitors in market. In continues appeal to its existing products and new
products, consumer preferences are taken in to consideration very carefully. Now days, toy industry is
changing and very difficult to predict. So company use different franchise concept to target certain age
group in short period of time. Mega Blok’s is in collaboration with some major brands to attract
customer e.g. Barbie, Batman Lego series, Call of duty construction toys, and other major brands to
target the market as per customer preferences.

Innovation and Content

Toy industry is all about change of product with time and new trends. Product innovation is the main
driver of Mega Blok’s, where company spends more than 6 – 7 % of annual sales on toy development
and integrate licensed products. In last decade company has shown a major improvement in toy quality
and new product lines, collaborating with major toy brands like Barbie, Batman, Pokémon, Call of Duty
Collector Construction Sets, Assassin’s Creed Collector Construction Sets and Ferrari. In Stationery &
Activities, the Corporation launched new activities play sets, a new line of learning products and
extended its selection of writing instruments, boards and accessories.