Inthis discussion, I am evaluating about a company on how it violated businessethics and morals. Micro-Games America Entertainment Inc. (MGAEntertainment) is an American manufacturer of children’s toys andentertainment products founded in 1979. InJune 2016, Isaac Larian CEO of MGA Entertainment Inc. watched viral videos ofkids unboxing toys on YouTube.
After watching toy videos Larian challenged histeam to come up with an idea. Five months later MGA released L.O.L surprise asmall plastic sphere concealing aminiaturedoll and its accessories. Toy which made up 50 bundle tiny items which kids canunwraphas landed at the top of many 2017 best toy lists.
This toy sold at both Toys”R” Us andAmazon.Larian took a decision to shift away from running spots during kids’ TV andcable programming and instead he wanted MGA products into the hands of kid influencerson YouTube. Board members was unhappy with this decision and they were underfeelingthat Larian is wasting money and time by this kind of decisions. But decisionthat took byLarianto have MGA’s marketing go 90 percent digital which created hits for Bratz andLalaloopsydolls.
Larian thinking about continuing shift of toy-age from traditional kid’sTVprogrammingto social media, where kids can view and share with friends about the videosaboutthe toys they want and according to Larian since 2012 kid influencers onYouTube haveincreasinglycaptivated their peers by posting videos of themselves unboxing, reviewing andplayingwith toys. Accordingto Neilsen reports 53 percentage of kids who fall under age group from 6-11watchedDisney Channel in 2017 cable season than in 2008, and 54 percent fewer watchedNickelodeon.Meanwhile 32 percent of kids said they prefer watching videos on a non-TVdevice in 2016. There was a time whencompanies used to put product on TV so that kids watch these videos andcompanies can make money out of it. Based on these analysis Larian decided notto waste any money with TV anymore rather he wants to go with digitalinfluencers viral marketing. That shift has provided a bonanza for YouTubereviewers among them a family knowaskidToyTesters. This group is of five siblings have made videos featuring toys includingMattel Inc., Habro Inc.
and MGA. This group also produced sponsored videos for17 brands including Nitendo, Spin Master and wicked Cool toys. Thisarticle states that company is not following ethics and morals. Stakeholders ofthis company didn’t follow any vendor conduct Principles (Cachon. G andTerwiesch) and they violated utilitarian rule (Mauresan A and Borza A) which isvery important for any company which want to produce the greatest goods tocustomers. These days’ kids are very attractive to YouTube channels to seerhymes and cartoon stuff, by looking into the analytics data KidToyTester cameto idea to create videos of toy and release on YouTube so that children willshare videos with parents to buy these toys.
This thinking from KidToyTestergroup was obstructionist approach. Lee (founder of KidToyTester) believe thatcompany will make 70% percent of their annual revenue over the holiday seasonas companies promote their toys.