While my previous post on entrepreneurship education, Bootstrapping at B-Schools is still generating hot discussion, I would like to pose another important discussion topic: Why do business incubators fail?
Those among my readers who have perspective and analysis to offer on the subject, please feel free to jump right in.
[Please note that since this discussion started here on the blog in 2010, we have launched the One Million by One Million global initiative, and for incubators looking for a viable business model, you are very welcome to reach out to us to become a partner of our program.]
The global toy market was around $78.09 billion in 2008. Sixty-five percent of the toy business comes from ten countries, with North America contributing 30% and Europe 29% of global sales. Asia’s contribution was 27% in 2008. The United States is the largest market for toys with sales of $21.7 billion. The toy market is expected to continue to grow as a result of strong demand in the emerging markets like Brazil, China, Russia, and India. Market research firm NPD expects the worldwide toy sales to be approximately $80.3 billion in 2012. The major players in the industry are Mattel, JAKKS Pacific, LeapFrog and Hasbro. >>>
Before going into analysis of LeapFrog’s (NYSE:LF) recent quarter, let’s take a look at some numbers that put the company’s situation into context: Worldwide toy sales reached $78 billion in 2008, registering a 0.8% decline over the year, according to a recently released NDP Group report. At constant exchange rates, sales would have increased 2.3% over the year. The United States is the biggest market for toys and contributes 30% of the global share. Within the country, sales fell 2% over the year to $21.7 billion, but board game sales grew 6% over the year to $794 million. The global toy market is expected to grow to $80.3 billion by the year 2012, with growth being driven by emerging markets. >>>
LeapFrog (NASDAQ:LF) continued to struggle with the recessionary pressures. The recently announced Q1 performance resulted in a loss while revenues nearly halved over the year. The worldwide edutainment market is still growing rapidly — according to InStat, it was $2.1 billion in 2006 and is expected to be $7.3 billion in 2011 — but as for so many markets, people are cutting spending on toys and other products for children. Perhaps My Pal Scout, the company’s new customizable talking plush puppy, will help boost revenues >>>