Essay On Hasbro

2358 Words5 Pages

Operation process Hasbro’s business strategy consist mainly to position themselves as an innovator in the toys and games industry, while maintaining a low-cost production to remain competitive in the market. Hasbro owns only two production factories; one in Massachusetts, USA, and the other one in Waterfall, Ireland. These facilities are in charge of producing board games and puzzles, while the rest of their products are manufactured by third party vendors and other outsourcing factories. Through this line of action, its business model allows Hasbro being a cost leader, focusing resources towards the development of innovative ideas for their products and their systems. Some key areas in the overall strategy of Hasbro are: Human Resources, Purchasing, Product Development and Customer Services. Human Resources The Human Resources department is dedicated to hire and build an excellent team with a great teamwork and leadership. As one of the most important strategies of the business is the innovation of their products, it is needed people who can add value to the company through its diversity, innovation and entrepreneurial spirit, in a competitive and fun environment. Purchasing This department is a major contributor to Hasbro’s business strategy. As the company enters into third party agreements for the production of raw materials such as cardboard, paper, plastic, and chemicals, the company is exposed to changes in prices. In this situation, negotiations have a major role in determining the cost of materials, having a direct relationship with the profits of the company. Currently, all of the third party vendors for Hasbro are located in China, as they give the lowest cost of production and contribute to giving value to the co... ... middle of paper ... ... Additionally, the hurdles imposed by the government agencies will impact the cost of sourcing from China adversely and will have a negative impact on the profitability for the company. Growing counterfeit goods market Hasbro faces a significant threat from counterfeits of its products. As the market for toys and games is increasing globally, the parallel market for counterfeit toys is also on the rise. Such activity rises especially during the festive months when toy sales are expected to be high. Counterfeits pose a threat to the toys and games market, not just in terms of lost business and brand dilution, but also by selling products that can be potentially dangerous to children of all ages. Low quality counterfeits reduce consumer confidence in branded products like Hasbro. Counterfeits not only deprive revenues for the company but also dilute its brand image.

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