Case Study 1 A small company Tinker Toys (TT), based out of the US, makes toys for pre-school children. The sales last year were $50M and net prot was $20M. The company has been growing at 50% each year. The toys are sold on either a yearly subscription or sent out every month as kits/packs. The Price range for the yearly subscription vary basis the number of toys per pack! kit, on an average it is $100. Considering the company is growing quickly, we want to find out the company's future growth and can it continue to grow at the same rate. Can Tinker Toys succeed in the market? There is insufficient secondary research on the preschooler toy market. We have to make our own estimations and approximations. The market is growing 20% per year and will continue to do so for the next several years. In the toy market, customers buy based on recommendations from other parents and for reputation for quality. TT is known as having the best educational toys in the market. They are actively marketing in pre-schools to the schools as well as to the parents. TT also sell through specialty stores, large chains of Toy stores such as Hamleys, The Little Doll House Company, Charles Ro Supply Company, etc. \"IT sales have been steady through the specialty stores channel. Tinker Toys also sell via Walmart, Costco and Target growing ~60% per year in large chains. The stores through which TT's competitors sell grow at a slower pace than the stores through which TT sell. This was proven by surveying the store managers through which Tinker Toys sold their products. In the survey, the store managers consistently said sales were growing at 20%. They sell all brands, and Tinker Toys was doing slightly better than others with ~25% growth. So, either the stores through which TT were selling may be adding new locations, or TT has recentiy been added to some of these stores. Over the East few years, the chains have added TT to a few stores per year. They are now in almost all of the stores. Among the players in the market, 'l'l' were rated the highest and 4 other players were viewed favorably, but not as highly ranked as Tinker Toys. Problem Statement 1: Apply the 30's framework for Tinker Toys. Is the market attractive for Tinker Toys to expand? If so, where else can it expand and what should be their expansion strategy? Use Case Study Exam Template shared with you to answer this question. Document upload option is available at the end of this exam form. Problem Statement 2: Use logic trees to estimate the market size of Tinker Toys? *Assume: Population size: US = 300Mn and Preschooler population to be 10% of total population. Use Case Study Exam Temptate shared with you to answer this question. Document upload option is available at the end of this exam form