Hasbro merchandise and services compared to its competitors - Essay Example

Task: Hasbro merchandise and services compared to its competitors. Products/ Service Hasbro Company is located in Pawtucket within the area of Rhode Island. It is one of the principal toy makers in the world, and produces board games. Helal Hassenfeld and Henry formed the company in 1923 (Fleisher 110). It was initially called Hassenfeld Brothers Inc. Hasbro hit the market in 1992 when they introduced a toy called Mr. Potato Head and later in 1964 when they brought G.I Joe action. In 1968, the entity altered its name to Hasbro Industries.

The company then purchased Milton Bradley Company adding to itself Candy Land, Yahtzee, Twister and Game of Life (Fleisher, 120). This made the company increase its game line above its competitors. On film production, Battleship was not a hit in the market because critics referred to it as cash grab. News of upcoming films such as Hungry, Hungry Hippos and Monopoly were met with similar response. Hasbro brought on board Transformers toys in early 1984. This led to an unbeaten cartoon series and current live action films.

Additional toys under Hasbro Company include Pokemon, Play-Doh and NERF. Other popular board games include Dungeons & Dragons, Trivial Pursuit, Pictionary, Scrabble and Cranium (Chan &Wishner 20). Hasbro competitors such as Mattel seem to assume an appropriate position compared to Hasbro. This is because of the popularity of its dolls and simplicity of its business. This makes it easier to understand Hasbro’s that is a murky mix of manufactured goods. Instead of Hasbro abridge its business like Mattel, It complicated it further.

It has worked together with World Trade Jewelers to make jewelry based on its Scrabble, Candy Land and My Little Pony. Hasbro Company also signed a partnership with Netflix. The deal allows Netflix to stream its clients with shows such as my little pony and Transformers. Lastly, Hasbro collaborated with Zynga to manufacture toys based on its Facebook games. This response focused on Mattel’s games such as Angry Birds that were made by Rovio Entertainment. Mattel acquired HIT Entertainment that makes Bob the Builder and Thomas the Tank Engine.

This enabled the company to increase its stock exchange on the market and outdo Hasbro. In addition to this, Mattel also produces dolls such as Disney princes. They also produce toys such as Hot Wheels, Fisher Price and Barbie (Fleisher 137). Investing in the movie industry is challenging idea for these companies. This forced Walt Disney to scale down its movie operations. It shifted its movie operation to Marvel and Lucasfilm. This was to minimize risk after a big loss in the production of Mars needs moms and John Carter (Chan &Wishner 22).

Given that Hasbro’s biggest sales were the girl’s toy, it is certain that it would boost its production of dolls and toys for girls. However, it would be hard for Hasbro to come up with a hit like Mattel’s Monster High dolls and Barbie. Based on this ideology, it is likely that Mattel will outshine Hasbro based on simple business model, stronger margins and admired female-centered goods Organized Structure Hasbro compared to its rivals Hasbro just like its competitors is a public company traded at the New York stock Exchange.

Hassenfeld is the chairperson of the Board managing Hasbro Inc. He owns 4% of the company’s share. The main stockholders are corporations such as the Barkley’s Global Investors UK Holding LTD and The State Street Corporation. There are other private stockholders (Fleisher160). Financial background of Hasbro compared to its competitors Hasbro Inc. increased its net revenue from $ 2,816,230 to $ 3,151,481 from 2002 to 2006. In addition, Shareholders Equity increased by $3 while the debt ratio declined by 23%.

This is an indication of a stable and financially sound company (Fleisher 150). The company intends to maintain its financial position by developing its brands, producing new brands that are attractive to the market and offering a wide range of entertainment services. This allows consumers to have a wide range of merchandise and services to choose from thus increasing the company’s sales. The company’s market includes The USA and other international markets. It has opened offices in major cities of the world thus creating more outlets for its merchandise (Chan &Wishner 11).

Increase in revenue in boys products were offset by declines in the games categories. The boy’s revenue increased by over 4% based on higher sales of Star Wars and Marvels products. Preschool products increased by 25 due to the sale of playskool rescue Heros and Sesame Street. The games products declined by 9% while the girl’s products declined by 18%. This was due to poor sales in littlest pet shop and furreal friends (Chan &Wishner 3). Operating profit for the year 2012 was $15,726. This decrease compared to 2011 had a profit of $48,923.

The change in profits was attributable to poor sales in 2012, high competition from Mattel and increases in expenses. Works Cited Chan, David. & Wishner, Andrew. Hasbro, Inc. Chaner Capital. November 2011. 12th May 2013 Fleisher, Craig S, and Babette E. Bensoussan. Business and Competitive Analysis: Effective Application of New and Classic Methods. Philadelphia, Pa: Wharton School, 2007. Print.