hasbro case analysis
Hasbro Interactive
Case Analysis
Introduction
Hasbro Inc., led by CEO Alan Hassenfeld, is a well-known long standing gaming company known for its famous games such as Monopoly, Play-Doh, Mr. Potato Head, etc. Hasbro has always been a single industry company, focusing on games and toys. In 1995, the company started a new division, Hasbro
Interactive, with the objective of bringing existing and new games to a different market through electronic means. This led Hasbro to become a related diversified company. Hasbro Interactive started by being a totally independent, wholly owned subsidiary. It grew to $200M in revenues in four years. Upon changes in management, Hasbro’s corporate management got involved in Hasbro Interactive’s operations and set unrealistic objectives. Corporate management lacked knowledge of this market which ultimately led to large setbacks and to the eventual sale of the division for a mere $100M. This report will focus on the lack of strategic guidance of Hasbro Interactive.
Situational Analysis
In order to understand Hasbro Interactive’s strategic objectives and management control systems it is important to evaluate the industry in which Hasbro Interactive competes and their position within this industry through the following models.
Porter’s 5 Forces
Supplier Power
HASBRO INTERACTIVE
2
Although there is no information given about suppliers, it is fair to assume that supplier power is fairly low because Hasbro Interactive is not dependent on any one major supplier. Hasbro Interactive is a knowledgebased company and therefore their most important input is information and technical know-how.
Buyer Power
Buyer power is two-fold. It is considered to be high when the retailers are the buyer as standards for returns are very liberal, which ultimately means that the risk lies with Hasbro Interactive and not with the retailers.
The return policy for Hasbro Interactive is similar to that of the publishing
Case Analysis
Introduction
Hasbro Inc., led by CEO Alan Hassenfeld, is a well-known long standing gaming company known for its famous games such as Monopoly, Play-Doh, Mr. Potato Head, etc. Hasbro has always been a single industry company, focusing on games and toys. In 1995, the company started a new division, Hasbro
Interactive, with the objective of bringing existing and new games to a different market through electronic means. This led Hasbro to become a related diversified company. Hasbro Interactive started by being a totally independent, wholly owned subsidiary. It grew to $200M in revenues in four years. Upon changes in management, Hasbro’s corporate management got involved in Hasbro Interactive’s operations and set unrealistic objectives. Corporate management lacked knowledge of this market which ultimately led to large setbacks and to the eventual sale of the division for a mere $100M. This report will focus on the lack of strategic guidance of Hasbro Interactive.
Situational Analysis
In order to understand Hasbro Interactive’s strategic objectives and management control systems it is important to evaluate the industry in which Hasbro Interactive competes and their position within this industry through the following models.
Porter’s 5 Forces
Supplier Power
HASBRO INTERACTIVE
2
Although there is no information given about suppliers, it is fair to assume that supplier power is fairly low because Hasbro Interactive is not dependent on any one major supplier. Hasbro Interactive is a knowledgebased company and therefore their most important input is information and technical know-how.
Buyer Power
Buyer power is two-fold. It is considered to be high when the retailers are the buyer as standards for returns are very liberal, which ultimately means that the risk lies with Hasbro Interactive and not with the retailers.
The return policy for Hasbro Interactive is similar to that of the publishing