To: Judy Muldawer who wrote (347 ) 12/2/1999 10:19:00 AM From: Diamond Jim Read Replies (1) | Respond to of 706
i thought the only thing that mattered was that a woman was ceo.... Mattel (MAT) 13 3/4 -3/8: If there is one place that should be brimming with holiday cheer right now, it is a toy company as this is their time to shine. Given the article in today's Wall Street Journal, though, it isn't likely that the executives at Mattel are running down the halls with eggnog in hand singing "Joy to the World." In fact, their tune has been a somber one as of late with CEO, Jill Barad, leading the chorus as the company has been embattled by its Learning Co. acquisition and disappointing sales results. Today it is contending with a report that its online operation, Mattel.com, is basically in disarray, and is falling further and further behind its online rivals as the company attempts to reconcile how to sell its own merchandise without alienating retailers. Thus far, it isn't having much success. Presently, it has yet to work out an agreeable profit sharing arrangement, and is sidestepping the issue by only selling products online that can't be found at retail. Adding to the competitive problem is that Mattel is still looking for someone to lead its interactive unit. Recall that last month, Learning Co. President, Kevin O'Leary, who was also in charge of Mattel.com, left the company. As it stands now, Mattel has acknowledged that it doesn't expect to have the retailer issue resolved this year and that it will not offer its entire product line on Mattel.com anytime soon. Given the growing influence of the Internet economy, these aren't exactly the most reassuring words for shareholders or analysts who must be growing impatient with Mattel's seeming lack of strategy in dealing with the changing dynamics of the toy industry. Perhaps Ms. Barad can turn to Mr. Komansky at Merril Lynch for a little guidance on how to change Mattel's sales approach without cutting off the lifeline from those that it has depended on the most in the past. As Merrill Lynch demonstrated, you don't have to jump into the fray guns ablazin', but at least show up to the fight with a loaded weapon.-- PJO The ClearStation A-List methodology