Hasbro, Inc.: SWOT Analysis & Company Profile by BusinessReview

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									Hasbro, Inc.

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Hasbro, Inc.: SWOT Analysis & Company
Profile



Reference code: BRCP102CP10-Q4

Published: Nov 2010




Business Review
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Hasbro, Inc. - SWOT Profile                                                         Page 1
Hasbro, Inc.

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Hasbro, Inc. - Company Overview

Hasbro, Inc. (Hasbro) is engaged in the design, manufacture and marketing of games and toys. The company offers a
wide variety of games such as, traditional board, card, handheld electronic, trading card, role playing, and DVD games. It
also offers electronic learning aids and puzzles. Its major brands comprise PLAYSKOOL, TRANSFORMERS, MY LITTLE
PONY, LITTLEST PET SHOP, NERF, G.I. JOE, TONKA, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS,
TIGER and WIZARDS OF THE COAST. Hasbro also licenses some of its trademarks, characters and other property
rights to third parties for promotional and merchandising uses. The company sells its products through its own sales force
and distributors in the US, Canada, Mexico, Europe, Asia Pacific, Latin America and South America. Hasbro is
headquartered in Rhode Island, the US.


Financial Performance

The company reported revenue of USD 4067.95 million during the fiscal year ended December 2009. Its revenue grew at
a compounded annual rate of 2.96% during the period 2007-2009 with a year on year growth of 1.15% over fiscal year
2008. During the fiscal year 2009, its operating margin was 14.47% as against an operating margin of 12.29% during the
fiscal year 2008. Moreover, during the fiscal year 2009, the company’s net profit margin was 9.22% as against a net profit
margin of 7.63% during the fiscal year 2008.




Hasbro, Inc. - Key Facts

Hasbro, Inc., Key Facts

                                  1027 Newport Avenue,
                                  Pawtucket, Rhode Island (RI),     Ticker Symbol, Stock        HAS (New York Stock
Corporate Address:                                                                              Exchange)
                                                                    Exchange
                                  02862, United States


Telephone                         + 1 401 4318697                   No. of Employees            5,800



Fax                               + 1 401 7275544                   Financial Year End          December



URL                               www.hasbro.com                    Revenue (in USD Million)    4,067.95



Industry                          Consumer Packaged Goods


                                  Australia, Belgium, France, Germany, Greece, Ireland, Italy, Netherlands, Spain, Switzerland,
Locations                         Turkey, United Kingdom, United States

Source: Annual Report, Company Website, Primary and Secondary Research




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Hasbro, Inc. - SWOT Profile                                                                                            Page 2
Hasbro, Inc.

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Hasbro, Inc. - Business Description

Hasbro, Inc. (Hasbro) is one of the leading providers of children’s and family leisure time and entertainment products and
services. The company markets its products to various customers, such as wholesalers, distributors, chain stores,
discount stores, mail order houses, catalog stores, department stores and other retailers, as well as e-tailers. Hasbro
employed 5,800 people as of December 27, 2009.

According to product category, the company operates its business in five categories namely, Boys, Games and Puzzles,
Girls, Preschool, and Other.

The company’s Boys’ toys category comprises a broad range of core brand offerings such as TRANSFORMERS and G.I.
JOE action figures and accessories, and NERF sports and action products. It also offers various entertainment-based
licensed products based on popular movie, television and comic book characters, such as STAR WARS and MARVEL
toys and accessories. During the fiscal 2009, the category contributed USD 1,470.98 million towards the total revenues of
the company.

Further, the Games and Puzzles category of the company comprises various brands such as MILTON BRADLEY,
TRIVIAL PURSUIT, CRANIUM, PARKER BROTHERS, AVALON HILL and WIZARDS OF THE COAST. These brand
portfolios includes a wide selection of games for children, teens, adults and families. Its core game brands comprises
Monopoly, Battleship, Game Of Life, Scrabble, Trouble, Mousetrap, Operation, Chutes And Ladders, Candy Land,
Connect Four, Cranium, Jenga, Simon, Twister, Yahtzee, Clue, Guess Who? and Bop It!. It also offers a line of puzzles
for children and adults such as the Big Ben and Croxley lines of puzzles. In addition the category offers, trading cards and
role-playing games under the WIZARDS OF THE COAST brand. During the fiscal 2009, the category contributed USD
1,340.89 million towards the total revenues of the company.

Under the Girls’ toys category, the company offers a traditional and wholesome play experience for girls. The various
brands offered under the Girls’ toys category comprises LITTLEST PET SHOP, FURREAL FRIENDS, MY LITTLE PONY,
STRAWBERRY SHORTCAKE and BABY ALIVE. During the fiscal 2009, the category contributed USD 790.82 million
towards the total revenues of the company.

The company under the Preschool toys category comprises a range of products for infants and preschoolers in the
various stages of development. The company offers its preschool products through a portfolio of core brands marketed
under the PLAYSKOOL trademark. The PLAYSKOOL line comprises products such as MR. POTATO HEAD, WEEBLES,
SIT ’N SPIN and GLOWORM as well as infant toy product line comprising STEP START WALK N’ RIDE, 2-IN-1 TUMMY
TIME GYM and BUSY BALL POPPER. During the fiscal 2009, the category contributed USD 451.40 million towards the
total revenues of the company. In addition, the company’s Other products category contributed USD 13.87 million towards
the total revenues, during the fiscal 2009.

Organizationally, the company classifies its business operations under three segments, namely US and Canada;
International; and Entertainment and Licensing.

The company, through its US and Canada segment, is engaged in the marketing and sale of products under various
categories in the US and Canada. Major brands and products of the segment comprises TRANSFORMERS, NERF,
MONOPOLY, LITTLEST PET SHOP, STAR WARS, MY LITTLE PONY, PLAYSKOOL, PLAY-DOH, MARVEL products,
MAGIC: THE GATHERING, G.I. JOE and FURREAL FRIENDS. During the fiscal year 2009, the segment contributed
60.2% towards the total revenues of the company, generating USD 2,447.94 million, an increase of 1.7% over the
previous year.

Further, the company, through its International segment, markets and sells a wide range of products to wholesalers and
retailers across the regions of Europe, Asia Pacific and Latin and South America. It also sells its products through
distributors in countries where the company has no direct presence. Recently, the company expanded its operations in
China, Russia, Brazil, Romania, the Czech Republic and Korea. Key brands in the segment include TRANSFORMERS,
STAR WARS, LITTLEST PET SHOP, TRIVIAL PURSUIT, MONOPOLY, PLAYSKOOL and MY LITTLE PONY. During the
fiscal year 2009, the segment contributed 35.9% towards the total revenues of the company, generating USD 1,459.48
million, a decrease of 2.7% over the previous year.

Through the Entertainment and Licensing segment, the company offers lifestyle licensing, digital licensing, movie,
television and online entertainment. The lifestyle licensing category promotes the company’s brands by out-licensing of its
intellectual properties to third parties for promotional and merchandising uses in businesses such as apparel, home
goods, electronics and publishing. The digital licensing category promotes the company’s brands through out-licensing of
its intellectual properties in the digital area, including applications on personal computers, mobile phones and video game
consoles. The company has a long-term strategic alliance with Electronic Arts Inc. During the fiscal year 2009, the
segment contributed 3.8% towards the total revenues of the company, generating USD 155.01 million, an increase of
43.6% over the previous year.

The company also has the Global Operations segment, engaged in manufacturing and sourcing production of
substantially all of the company’s toy and game products. It owns and operates manufacturing facilities in East
Longmeadow, 
								
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