Hasbro: Toys, Games & Entertainment for All Ages - Essay Sample

Introduction

Hasbro is a board game and toy Company that produces games, toys, lifestyle, and entertainment products for all ages. Thus its target market is worldwide and covers all age groups. The company mainly targets children for their products but also advertises and markets in a manner that also targets parent so that they are willing to purchase their products. Also, for adults, the target market includes older adults as young people are less likely to have children. Furthermore, the company also targets teenagers through retro board games such as monopoly, a game that also appeals to the elderly and adult customers (Hasbro).

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Hasbro's Mission

Through its focused differentiation, Hasbro's mission is to meet the needs of its target market of all age groups and become a leading provider of entertainment. Subsequently, the mission involves offering the most recognizable and highest quality recreational and play experience by inspiring play for all its customers worldwide. Also, the company's mission involves innovating its brand to develop new toy technologies and continued global expansion while committing to its main areas of corporate social responsibility, that is, environmental sustainability, product safety and adhering to manufacturing ethics (Hasbro).

Hasbro’s Organizational Structure

The organization has a divisional organizational structure headed by a chief executive officer who is also the chairman of the board. Under him is the president who is also the chief operating officer, and several executive vice presidents each of which is responsible for a particular department such global operations, global human resources, legal department among others. Additionally, Hasbro emphasizes professionalism and innovation thus the company has fostered an environment that fosters creative and innovative minds. Hence, the management and the employees work together and assume responsibility and accountability for innovations and results delivered (Hasbro).

Hasbro's Competitors

The organization competes with various large game and toy companies as well as with several smaller game and toy manufacturers, designers, and designers in the United States and around the world. However, its main competitors include Mattel, a multinational toy manufacturing organization that offers various games, toys and accessories under its Mattel Girls & Boys brands, Fisher-Price and American Girl brands, Lego that offers toys in various categories such as space and robot, construction, building, cars, trains, trucks among others, and JAKKS Pacific, a multi-brand and multi-line company that provides electronic and traditional toys, and novelty, role play and seasonal toys (GlobalData).

Hasbro's Competitive Advantage

The organization's competitive advantage lies is from the strength of its entertainment brand portfolio. It is developed based on a multiplatform content approach that leverages the power of the brands by developing entertainment products across visual media platforms, digital gaming and traditional toys allowing sales from one platform to boost sales from the others. Additionally, the company's relationship with Marvel and Disney allow is to exclusively reap all profits from toys based on feature films associated with the brand (Hasbro).

Hasbro's SWOT Analysis

Strengths

The company gets good returns on capital expenditure as is successful at new projects executions which create new revenue streams ensuring returns on capital expenditure. Furthermore, Hasbro expertise at entering new and emerging markets ensures excellent performance in these markets. Hasbro's expansion assists in generating new streams of revenue and spread the risk of an economic cycle in the market. Additionally, the firm's highly trained workforce from huge resource investment on development and training results in a highly motivated and highly skilled workforce that is ready and willing to achieve more. Also, the company has attained a successful track record of product innovation leading to the development of new products that are in line with the customer's preferences and demand (GlobalData).

Weaknesses

The company has a high attrition rate which means it has to spend more money on training and development of new employees. Also, although the company spends a significant amount on research and development, compared to its competitors, it is still unable to adequately compete with leading industry players in its innovations. Furthermore, in light of its expansion into various regions, its investment in new technologies is not at par with the company's vision to integrate processes across the board. Additionally, although the company has a wide collection of products, the raw materials and distribution of these products are mainly done by third parties thus the pricing of the products are susceptible to external forces (GlobalData).

Opportunities

A major opportunity for the company is the emergence of new markets due to government free trade agreement and the adoption of a new technology standard enabling the company to expand into new emerging markets. Also, new consumer behavior trends would provide Hasbro with the opportunity to develop new revenue streams by diversifying into new categories of products. Furthermore, the company's investment in online platform opens up the online channel in attracting and acquiring new customers (GlobalData).

Threats

As the company expands into more markets, a major threat to its profitability is its exposure to currency fluctuations in markets with a volatile economic and political climate. Additionally, the improvements in the strength of local distributors possess a threat to the company as its competitors are paying higher margins to the distributors. Also, the seasonal demand for the highly profitable products possesses a threat as a disruption during the peak season would negatively impact the company's profitability. The profitability in the industry has resulted in more players thus reducing the sales and profitability of such companies Hasbro (GlobalData).

Strengths Good Returns on Capital Expenditure

• Superb Performance in New Markets
• Highly skilled workforce
• Successful product innovation
• Weaknesses Low employee retention rate
• Inadequate investment on research and development
• Inadequate investment on new technologies
• Third parties in sourcing raw materials and in distribution
• Opportunities Emergence of new markets
• New trends in consumer behavior
• More consumers from online channels
• Threats Currency fluctuations
• Strength of local distributors
• Seasonal demand for profitable products
• Entry of more players into the industry

Works Cited

GlobalData. "Hasbro, Inc. (HAS) - Financial and Strategic SWOT Analysis Review." 9 August 2016.

Hasbro. Corporate. 2019. <https://hasbro.gcs-web.com/corporate>.