Hasbro SWOT and PESTLE Analysis

Strength

1. Strong revenue growth across segments with consistent financial performance: Hasbro reported strong revenue growth in FY21 with the company crossing $6 billion in annual revenue for the first time in the company’s history and the company had managed to bounce back from decline caused due to covid-19. Revenue increased from $5.46 billion in FY20 to $6.42 billion in FY21, registering a commendable growth 17.5%, excluding the negative impact of forex fluctuations. In FY20, the company registered a revenue growth of 16% to $5.46 billion. All the major operating segments reported healthy growth with 9% in Consumer gaming segment; 42% in the Wizard of coast and digital segment; and 27% in the Entertainment and Licensing segment. Hasbro’s total gaming segment is a key competitive differentiator for the company and reported revenues of $2,099 million in FY21, up 19% from $1,763.3 million in FY20. The segment includes its key products Magic: The Gathering and Monopoly. The company also consistently rewarded its shareholders though buyback and dividends and returned $374.5 million and $372.0 million to its shareholders in FY21 and FY20 respectively. The company has maintained a quarterly dividend rate of $0.68 per share throughout 2021.

2. Strong brand equity with broad portfolio of owned and controlled brands: One of Hasbro's most significant strengths is its strong brand recognition. The company has an extensive portfolio of well-known brands, which has helped it to retain and attract customers. Hasbro's brands have a long-standing history, and some of them have been around for over a century. For instance, Monopoly has been around since the early 1900s, and Transformers have been popular since the 1980s. Also, the company has managed to attain global recognition for its brands. Hasbro was named the #1 toy and game company within the G11 markets. This was achieved with the help of its Brand Blueprint. Brand Blueprint is responsible for creating a single most important competitive advantage for Hasbro making it known to other competitors with global consumer insights; creating stories that are engaging, rich, and generating an experience in toys, games, digital gaming, consumer products, and entertainment that’s innovative in nature. Hasbro had invested over $1 billion in Brand Blueprint over the last decade and has also spent $2 billion on product development and design which has eventually created the Hasbro we see today. It is to be noted that during this period of time, the value of Hasbro has tripled which has led to Hasbro becoming the number 1 company in G11 markets that build games and toys (as per NPD and SIM). Hasbro is looking to build brands like ours through storytelling that is entertainment based. It is also to be held responsible across mediums for storytelling that is brand driven inclusive of global distribution and development of television programming that is based primarily on its brands. Hasbro is also amplifying itself beyond games and toys to become an entertainment and global play company which possesses the vision, talent and capabilities that can build brands with experience and possessing deep meaning and play for its consumers. It creates traditional toys and entertainment products across digital gaming along with visual media platforms in such a way that creates the chain of allowing the sales on one platform to create sales on another platform. This is the first ever implementation of this strategy and Hasbro has pioneered it.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

1. Rapid change in consumer interests globally: Globally changing consumer interests are rapidly changing which is making the creation of the storytelling experience difficult to develop and design products which would be popular with families and their children and which would also maintain the popularity of the brand. There are often dramatic changes from year to year over the interests of the families and their children. The ever evolving and rapidly changing interest patterns of people along with the expanding pipeline of consumer products and entertainment can cause some products to fail to produce the consumer acceptance while there are other products which can turn out to be popular during a certain period and then rapidly relinquish their position to another. Due to this, the family entertainment products and individual children products face short consumer cycles. In order to succeed, Hasbro has to think out ways that will capture the children’s imagination and then create pattern over them. These then need to be developed quickly and be introduced so as to make the most of the limited time frame of the consumer’s time, spending and attention.

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Technological

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Legal

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Environmental

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