Hasbro is one of the largest toy companies in the world founded in 1923. It has a large portfolio of well-known toy brands such as Transformers, My Little Pony, and Monopoly. While Hasbro has a strong brand portfolio and distribution network, it faces threats from increasing regulations and many substitute products. Potential strategies for Hasbro include outsourcing manufacturing, expanding globally, developing digital media like video games based on its brands, and marketing strategies to leverage its classic toy brands in new digital entertainment. However, focusing first on creating new digitally-driven characters and entertainment may be a better long-term strategy than short-term exploitation of existing toy brands.

1. Brandon Graviet, Christopher Lee, Dane Hockema, Greg Guillen, and Matt HankinsHASBRO, INC.

2. History-HasbroFounded in 1923 by Henry Hilal, and Herman Hassenfeld (Hassenfeld Brothers Incorporated).

3. 1930’s Start of Toy Manufacturing, medical sets for juniors, 1950’s Mr. Potato Head.

4. 1968 Company changes name to Hasbro Industries and goes public.

5. 1984 Acquisition of Milton Bradley

6. 1995 Merger Fail with Mattel (5 billion offer)History-HasbroOne of the largest toy companies in the world.Net revenues Nov 3rd, 2010( Nine Months)2.7 Billion(U.S & Canada, International Segment, Entertainment and Licensing SegmentOperating Profit 386 MillionToys 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.

7. External Environment factors key to HASBROEconomic ConditionsConsumption down, Per capita income DownSociocultural/Demographic trendsAge compressionTraditional Toys not acceptable in societyTechnologicalVideo games, PCs, rapid development of affordable high tech entertainment.Political/LegalHeavy regulatory environment- taxes expected to rise in futureGlobalCheap manufacturing abroad, low regulatory environment abroad,Growing markets in East Asia

8. Porter’s Five ForcesThreat of New EntrantsMature industryLarge initial investment, and low growth industryBargaining Power of SuppliersRaw materials cheap to acquireLicenses difficult to acquireBargaining Power of BuyersDepartment stores & Big Box retailers drive salesSubstitutesMany substitute goodsIntensity of Rivalries inside industryMattel is a bitter rival

9. SWOT AnalysisStrengthsWell known products and a large brand portfolioHigh product diversity, a key success factor in the toy manufacturing industryHigh employee efficiency

10. Hasbro’s revenue per employee= .701 million

11. Mattel’s= .201 million per employee

12. Strong distribution network

13. Strong presence in north America- 30% market shareWeaknessesSecond to Mattel in market share (30% vs 40%)High customer concentrationHasbro relies on 3 retailers for nearly 50% of their revenues

14. Diverse customers is important in this industrySWOT Analysis (Cont.)Opportunities-Movies-TV Shows -Marketing Expansion-Technology- Family sizesThreats-Regulations - Many Substitutes - Mattel- Industry is highly Seasonal

15. OperationalStrategicOutsourcing:Longmeadow, MA

16. Unionized, $14-20/hour

17. ESL programs

18. Reputation???Global Expansion:Asia, Eastern Europe, and South AmericaDigital Media:License electronics from toys

19. License toys from electronicsMarketing:New Products

20. New Strategies for Classic ProductsPotential Strategies

22. ExecutionNo Outsourcing:Mattel recalls in 2007

23. Hasbro: $6.49B MC, 5,800 full time employees

24. Mattel: $9.27B MC, 27,000 full time employeesScale Back Global Expansion:Major growth potential is in U.S. electronicsFocus on Digital Entertainment First:Toys of the future will be based on TV, movies, etc.

25. Licensing digital entertainment from classic toys is a short-term strategy

26. The Hub, kids television channelMarketing:Short-term: Milk digital media rights for classic productsLong-term: Focus on licensing of new media driven characters