Toy manufacturing industry – Macroenvironment and industry summary

Various factors in the toy industry macro-environment influence its performance. Such factors include political, economic, sociocultural, technological, environmental and legal (PESTEL) factors. The effect of such factors on the industry performance is discussed subsequently.

Political factors

Political factors affect the industry performance to a varying extent. For instance, according to the 2011 annual report for Hasbro Inc, political factors that influence the industry’s performance include imposition of trade sanctions on its imports and loss of normal trading relations with key trading partners such as China (Edgar Online, 2011, pp. 6-7). …. Get the rest aspects of the political factors by placing your custom order below.

Economic factors

Economic factors affect the toy industry to a varying extent. For instance, economic crises that result to widespread unemployment and reduced disposable income reduce the population’s expenditure on leisure commodities. Such a scenario was for instance evident in the U.S. where the recent financial crisis resulted in a negative growth in the toy manufacturing industry in 2009 (Datamonitor, 2010b, pp. 8-9). Other economic factors include … you can get the whole discussion on economic factors on the toy industry by placing your order below.

Sociocultural factors

Sociocultural factors affect toy industry in a variety of ways for instance contributing to the shift from simple physical toys to technologically superior interactive toys. For instance, the increasing incidence of dual-income families have reduced the play partners that children have at home thus increasing the demand for interactive toys (Babitch et al., 2006). Due to society changes that have increased access to information, kids are getting exposed to various aspects of life at an early age thus getting older while they are young. Such age compression implies ….. Get the rest of the analysis of sociocultural factors by placing your order below.

Technological factors

The effect of technology has been evident in the toy industry with the development of toys rich in interactive content (Babitch et al., 2006). From the simple, physical toys of yester years, technology has enabled the development of toys based on hardware and software functionalities to conform to the computing-age advancements (Babitch et al., 2006; Toy Industry Association – TIA, 2011). Examples of this in the toy industry include … you can have the custom-written paper by placing your order below.

Environmental factors

Environmental factors have become a core concern of various industries in the 21st century in the clamor to combat environmental degradation from such sources as greenhouse gas emissions. The effect of toy industry on the environment arises from the emissions that occur mainly in their manufacturing and other operations as well as the impact of waste from disposal of used toys. the environmental issues have affected the toy industry in different ways as discussed subsequently…. Get the rest of the discussion on this topic by placing your order now.


Various legislations may affect the performance of entities in the toy manufacturing industry. For instance, the products of the entity are subject to comply with laws governing consumer safety and environmental standards (Edgar online, 2011). Other laws such as those restricting advertisement to children (e.g. The Children’s Television Act of 1990), also influence the performance of the entities by limiting … get the whole discussion by placing your order below.

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