Competitor Analysis Matrix Example

This article was written by our expert who is surveying the industry and constantly updating business plans for various industries.

Our business plans are comprehensive and will help you secure financing from the bank or investors.

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in competitive markets like toys and games.

Who are the top five direct competitors in this market segment right now?

The five dominant players in the global toys and games market are LEGO Group, Mattel, Hasbro, Spin Master, and MGA Entertainment.

LEGO Group leads the market as the construction toy specialist, holding 10-12% of the global market share with its focus on educational and STEM-based play experiences. Mattel follows closely with 7-10% market share, leveraging iconic brands like Barbie, Hot Wheels, and Fisher-Price that have maintained relevance across multiple generations.

Hasbro competes directly with Mattel in the 7-10% market share range, dominating the board games segment with classics like Monopoly while also excelling in action figures and licensed products. These three companies represent the traditional powerhouses of the industry with decades of brand recognition and distribution networks.

Spin Master and MGA Entertainment each hold 4-6% market share but are gaining ground through innovation and trend identification. Spin Master has built its success around entertainment franchises like PAW Patrol and interactive toys, while MGA Entertainment has captured significant market attention with collectibles and surprise toys like L.O.L. Surprise! that tap into current consumer behaviors.

You'll find detailed market insights for competitive analysis in our business plans, updated every quarter.

What is each competitor's primary product or service offering and how does it compare in terms of features?

Each major competitor focuses on distinct product categories with unique feature sets that cater to different consumer needs and age groups.

How are competitors currently pricing their products and what pricing strategies do they use?

All major competitors employ tiered pricing strategies with premium positioning for digital, educational, and licensed products.

LEGO commands the highest price points in the construction toy segment, with basic sets starting at $10-20 and premium licensed sets reaching $300-800. Their pricing reflects the educational value, build quality, and brand prestige, with consumers willing to pay 20-40% more than generic building blocks.

Mattel and Hasbro use similar mid-range pricing for their core products, with basic Barbie dolls at $10-15, Hot Wheels singles at $1-2, and board games ranging from $15-50. Both companies implement seasonal discounting strategies, particularly during Q4 holiday periods, with promotions reaching 25-40% off regular prices.

Spin Master and MGA Entertainment focus on innovation-driven pricing, where new interactive features or surprise elements command premium prices. Hatchimals launch at $50-70, while L.O.L. Surprise! products range from $8-25 per item, leveraging the collectibility factor to drive repeat purchases.

This is one of the strategies explained in our business plans.

What is the estimated market share of each competitor over the past two years?

Market share distribution has remained relatively stable over 2023-2025, with slight shifts favoring companies that invested heavily in digital integration and sustainability.

LEGO Group maintained its leadership position at 10-12% global market share, actually gaining ground due to increased demand for educational toys during and after the pandemic. Their focus on STEM learning and eco-friendly materials resonated with parents willing to pay premium prices for perceived value.

Mattel held steady at 7-10% market share despite facing challenges with changing demographics and toy preferences. The company's successful Barbie movie tie-in in 2023 provided significant boost to brand recognition and sales, helping maintain their position against competitors.

Hasbro similarly maintained 7-10% market share by leveraging their strong board game portfolio and entertainment partnerships. Their digital gaming initiatives and nostalgic product lines helped offset declining action figure sales in some segments.

Spin Master and MGA Entertainment each grew from approximately 3-5% to 4-6% market share, representing the fastest growth among major competitors. Both companies benefited from trend identification capabilities and agile product development cycles that allowed them to capitalize on emerging consumer behaviors like unboxing experiences and interactive play.

Our financial forecasts are comprehensive and will help you secure financing from the bank or investors.

Which distribution channels are competitors relying on most, and how effective are these channels?

E-commerce platforms have become the dominant distribution channel, surpassing traditional retail stores in both reach and growth potential.

Amazon serves as the primary e-commerce channel for all major competitors, with some companies reporting 30-40% of total sales through this single platform. LEGO and Mattel have also developed sophisticated direct-to-consumer websites that offer exclusive products, customization options, and subscription services, generating higher profit margins than third-party retail.

Traditional retail still plays a crucial role, particularly large format stores like Walmart, Target, and specialty toy chains like Toys"R"Us (in markets where it operates). These physical locations remain important for product discovery, hands-on experience, and impulse purchases, especially during holiday seasons when they can account for 50-60% of annual sales.

International markets rely heavily on regional e-commerce platforms like Shopee and Lazada in Southeast Asia, with companies adapting their distribution strategies to local preferences and payment methods. Omnichannel strategies that integrate online and offline experiences have proven most effective, allowing customers to research online and purchase in-store or vice versa.

We cover this exact topic in the business plans.

What customer segments are competitors targeting and how do these segments overlap or differ?

Competitors target distinct age groups and psychographic segments, though significant overlap occurs in educational toys and collectibles categories.

• LEGO Group: Primarily targets children aged 4-16 and adult enthusiasts (18-50), focusing on parents who value educational benefits and adults seeking creative outlets or nostalgic experiences
• Mattel: Concentrates on children aged 3-12 with gender-specific marketing (Barbie for girls 3-12, Hot Wheels for boys 3-10), while expanding into adult collectors and nostalgic buyers
• Hasbro: Covers the broadest age range from preschool to adults, leveraging movie and TV tie-ins to capture multi-generational families and nostalgia-driven purchases
• Spin Master: Focuses heavily on preschool and early elementary segments (ages 2-8), with educational content alignment and family entertainment integration
• MGA Entertainment: Targets primarily girls aged 5-12 and increasingly "kidults" aged 18-35 who collect toys for personal enjoyment or investment purposes

What unique selling propositions do competitors highlight in their marketing and sales materials?

Each competitor has developed distinct brand positioning that emphasizes their core strengths and target audience values.

LEGO positions itself as "learning through play" with heavy emphasis on creativity, problem-solving, and sustainable manufacturing practices. Their marketing consistently highlights educational benefits, STEM skill development, and environmental responsibility through recycled materials and carbon-neutral shipping.

Mattel leverages "iconic global brands" and "empowering storytelling," particularly evident in Barbie campaigns that emphasize diversity, career possibilities, and self-expression. Their messaging focuses on inspiring children to imagine unlimited possibilities while maintaining connection to beloved childhood memories.

Hasbro emphasizes "entertainment tie-ins" and "nostalgic connections," marketing their products as bridges between generations and extensions of popular media properties. They position themselves as creators of "memorable family experiences" through board games and licensed character products.

Spin Master highlights "innovation in play" and "educational entertainment," marketing their products as technology-enhanced learning tools that combine fun with developmental benefits. Their campaigns emphasize hands-on creativity and character-driven storytelling from popular children's shows.

It's a key part of what we outline in the business plans.

How much are competitors investing in digital marketing and which platforms drive the most engagement?

All major competitors have significantly increased digital marketing investments, with some allocating 40-60% of their total marketing budgets to digital channels as of 2025.

YouTube remains the primary platform for all competitors due to its effectiveness in reaching both children and parents through unboxing videos, product demonstrations, and branded content. LEGO and Mattel report the highest engagement rates on YouTube, with their branded channels accumulating millions of subscribers and billions of views annually.

Instagram and TikTok drive strong engagement for companies targeting older children and adults, particularly MGA Entertainment and Hasbro, who leverage user-generated content and influencer partnerships. These platforms are especially effective for collectibles and nostalgic products that benefit from visual storytelling and viral challenges.

Parent-focused marketing occurs primarily on Facebook and Pinterest, where companies share educational content, parenting tips, and product benefits. Spin Master and LEGO excel in this space by providing content that helps parents justify premium toy purchases through educational value propositions.

All our business plans do include a timeline for project execution

What partnerships, alliances, or distribution agreements have competitors recently established?

Strategic partnerships with entertainment studios and technology companies have become critical competitive advantages in the toys and games market.

LEGO has established major licensing agreements with Disney for Star Wars and Marvel properties, Warner Bros for Harry Potter and DC Comics, and Netflix for Stranger Things themed sets. These partnerships provide exclusive content and drive significant sales through cross-promotion and limited edition releases.

Mattel secured a landmark partnership with Warner Bros for the Barbie movie franchise and maintains ongoing relationships with Disney, Universal, and other major studios for character licensing. Their recent agreement with Amazon for exclusive product launches has strengthened their direct-to-consumer capabilities.

Hasbro's entertainment strategy includes partnerships with Netflix, Disney+, and other streaming platforms for original content featuring their characters. Their acquisition and partnership strategy focuses on maintaining control over key intellectual properties like Transformers and G.I. Joe.

Spin Master leverages their ownership of PAW Patrol to create partnerships with educational institutions and streaming services, while MGA Entertainment has developed collaborations with social media influencers and collectibles marketplaces to support their L.O.L. Surprise! ecosystem.

How strong is each competitor's brand presence and reputation based on customer reviews and media coverage?

Brand strength varies significantly among competitors, with LEGO consistently ranking highest in consumer trust and brand value assessments.

What innovations, patents, or technology upgrades have competitors introduced in the past 12 months?

Innovation focus has centered on digital integration, sustainability, and educational technology across all major competitors in 2024-2025.

LEGO leads in sustainability patents with new bioplastic formulations and sustainable packaging solutions, while also introducing AR-enhanced building experiences through their mobile app. Their recent launches include sets that combine physical building with digital storytelling through augmented reality overlays.

Mattel has invested heavily in smart toy technology, including Barbie dolls with AI-powered conversation capabilities and Hot Wheels tracks with app-connected race timing systems. Their Fisher-Price division has introduced several patents for educational toys that adapt difficulty levels based on child interaction patterns.

Hasbro has focused on digital board game integration, creating hybrid physical-digital experiences for classics like Monopoly and new releases. They've also developed patents for action figures with enhanced articulation and interactive features that respond to smartphone apps.

Spin Master and MGA Entertainment have concentrated on surprise and interactive elements, with new patents covering unboxing mechanisms, color-changing materials, and collectible authentication systems to combat counterfeiting in their popular lines.

Get expert guidance and actionable steps for innovation strategies inside our business plans.

What are the most likely moves competitors will take in the next year to strengthen their position in the market?

Industry experts predict major expansion in subscription services, direct-to-consumer sales, and sustainability initiatives throughout 2025-2026.

LEGO will likely expand their subscription box services internationally and introduce more eco-friendly packaging solutions as they work toward their 2030 carbon-neutral goal. Expect continued investment in digital experiences that complement physical building sets, including virtual reality building platforms and expanded AR capabilities.

Mattel and Hasbro are positioned to increase their streaming content partnerships, developing more original programming that drives toy sales while exploring rental and subscription models for premium products. Both companies will likely pursue acquisition opportunities in the educational technology space.

Spin Master and MGA Entertainment are expected to expand their collectibles and interactive toy lines while increasing investment in direct-to-consumer e-commerce platforms. Both companies will likely explore international expansion opportunities, particularly in emerging markets where disposable income for premium toys is growing.

All competitors will continue investing in supply chain resilience and manufacturing diversification to reduce dependency on single-region production, while expanding their adult collector segments through premium product lines and exclusive releases.

All our financial plans do include a tool to analyze the cash flow of a startup.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Spherical Insights - Top Companies in Toys and Games Market
2. Mordor Intelligence - Toys and Games Market Report
3. Future Market Insights - Kids Toys Market
4. Trace Data Research - Thailand Toys and Games Market
5. Mercio - Pricing Challenges in Toy Industry
6. Research and Markets - Distribution Channels in Toys
7. Contact Pigeon - Toys Games Industry Trends 2025
8. Brand Directory - Toys Report
9. Research and Markets - Toys and Games Global Forecast
10. Data Insights Market - Educational Toys and Games