Hasbro

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Hasbro

  1. 1. Brandon Graviet, Christopher Lee, Dane Hockema, Greg Guillen, and Matt Hankins<br />HASBRO, INC.<br />
  2. 2. History-Hasbro<br /><ul><li>Founded in 1923 by Henry Hilal, and Herman Hassenfeld (Hassenfeld Brothers Incorporated).
  3. 3. 1930’s Start of Toy Manufacturing, medical sets for juniors, 1950’s Mr. Potato Head.
  4. 4. 1968 Company changes name to Hasbro Industries and goes public.
  5. 5. 1984 Acquisition of Milton Bradley
  6. 6. 1995 Merger Fail with Mattel (5 billion offer)</li></li></ul><li>History-Hasbro<br />One of the largest toy companies in the world.<br />Net revenues Nov 3rd, 2010( Nine Months)<br />2.7 Billion(U.S & Canada, International Segment, Entertainment and Licensing Segment<br />Operating Profit 386 Million<br />Toys and Games: G.I. Joe (The Rising Cobra), Nerf, Pokemon, Star Wars, Tinkertoys, Transformers (films as well), Easy-Bake Oven, Mr. Potato Head, Monopoly, Battleships, Candy Land, Magic: The Gathering, Scrabble, Sesame Street, Barney.<br />
  7. 7. External Environment factors key to HASBRO<br />Economic Conditions<br />Consumption down, Per capita income Down<br />Sociocultural/Demographic trends<br />Age compression<br />Traditional Toys not acceptable in society<br />Technological<br />Video games, PCs, rapid development of affordable high tech entertainment.<br />Political/Legal<br />Heavy regulatory environment- taxes expected to rise in future<br />Global<br />Cheap manufacturing abroad, low regulatory environment abroad,<br />Growing markets in East Asia<br />
  8. 8. Porter’s Five Forces<br />Threat of New Entrants<br />Mature industry<br />Large initial investment, and low growth industry<br />Bargaining Power of Suppliers<br />Raw materials cheap to acquire<br />Licenses difficult to acquire<br />Bargaining Power of Buyers<br />Department stores & Big Box retailers drive sales<br />Substitutes<br />Many substitute goods<br />Intensity of Rivalries inside industry<br />Mattel is a bitter rival<br />
  9. 9. SWOT Analysis<br />Strengths<br /><ul><li>Well known products and a large brand portfolio</li></ul>High product diversity, a key success factor in the toy manufacturing industry<br /><ul><li>High employee efficiency
  10. 10. Hasbro’s revenue per employee= .701 million
  11. 11. Mattel’s= .201 million per employee
  12. 12. Strong distribution network
  13. 13. Strong presence in north America- 30% market share</li></ul>Weaknesses<br />Second to Mattel in market share (30% vs 40%)<br />High customer concentration<br /><ul><li>Hasbro relies on 3 retailers for nearly 50% of their revenues
  14. 14. Diverse customers is important in this industry</li></li></ul><li>SWOT Analysis (Cont.)<br />Opportunities-Movies-TV Shows<br /> -Marketing Expansion-Technology- Family sizes<br />Threats-Regulations<br /> - Many Substitutes - Mattel- Industry is highly Seasonal<br />
  15. 15. Operational<br />Strategic<br />Outsourcing:<br /><ul><li>Longmeadow, MA
  16. 16. Unionized, $14-20/hour
  17. 17. ESL programs
  18. 18. Reputation???</li></ul>Global Expansion:<br /><ul><li>Asia, Eastern Europe, and South America</li></ul>Digital Media:<br /><ul><li>License electronics from toys
  19. 19. License toys from electronics</li></ul>Marketing:<br /><ul><li>New Products
  20. 20. New Strategies for Classic Products</li></ul>Potential Strategies<br />
  21. 21.
  22. 22. Execution<br />No Outsourcing:<br /><ul><li>Mattel recalls in 2007
  23. 23. Hasbro: $6.49B MC, 5,800 full time employees
  24. 24. Mattel: $9.27B MC, 27,000 full time employees</li></ul>Scale Back Global Expansion:<br /><ul><li>Major growth potential is in U.S. electronics</li></ul>Focus on Digital Entertainment First:<br /><ul><li>Toys of the future will be based on TV, movies, etc.
  25. 25. Licensing digital entertainment from classic toys is a short-term strategy
  26. 26. The Hub, kids television channel</li></ul>Marketing:<br />Short-term: Milk digital media rights for classic products<br />Long-term: Focus on licensing of new media driven characters<br />

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