The key success factors can be differentiated based on their definition for the industry (Sun, 2001), the strategy of a company, the environmental success factors, or the temporal success factors based on internal organizational needs (Morrison, 2012).
Newer product Development: New product development is a classical critical success factor. In the international trends of the toy industry it is noted that since fewer children are born into families, they are given the best toys possible, albeit the rates are high. For instance, the case study notes that children in China are spoiled with toys when they are even in the 0-3 range. Here a culture based demand is created as grandparents and parents like to spoil their children with toys. Hence a critical success factor for companies competing in the toy industry is the unique and new products that they present to the market.
Another demand is being created in Asia as parents believe that pre-school toys can increase their children’s intelligence. These parents are also aware of the role of the toys will play in stimulating the children’s mind. Companies that can create toys that are intellectually stimulating hence have a good market position in the industry.
Thirdly, the trend of parents postponing having children, and also allotting more time to careers over children has created a unique need. Parents want toys that can help address the gap that is created because of the limits on parental time.
Cost: At one end of the spectrum there are parents having lesser children or parents having children when they are quite settled down with respect to their careers. These parents don’t mind spending extra, as the case study notes greater consumer expenditure per child is created. However the case study also presents that there are single parent households where the parents will need cheaper toys. In this case the toy companies that can deliver a range of toys with respect to costs will fare better.