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Hasbro Games – POX

1. The state of Hasbro Games at the time of the case and was: • Losing its leading position Hasbro was in the leading place in toy industry, but in year 2000, started with the softening sales of Pokemon – one of its most profit products, Hasbro was losing its position. • Restructuring its workforce The overall workforce reductions since 1997 were around 29%, including the 5% layoff in year 2000. • Trying to find a way to grow again Hasbro Games knew that they were stuck in the market; they were trying to find a way to be profitable again. The reasons that Hasbro Games struggled in the market were: • The toy industry The toy industry in year 2000 is highly competitive, and very mature. Two indications were evident for that situation: a) falling toy price, and b) a phenomenon called age compression. • Strategy out of time The strategy Hasbro adapted – focus on software and technology as well as licensing of successful brands - didn’t match the changing market today. • Risky acquisitions of sought-after brands It is good for companies in the toy industry to acquire strong brands, but Hasbro’s acquisition of Star Wars was so big that ruin the portfolio effect. • The huge R&D investments The success of Hasbro Interactive, the video and computer games division, was hard to sustain, since the incredible R&D expense. Hasbro Interactive and Games.com were expected to lose $85 million and $40 million in 2000, respectively. • The acquisition of Hasbro Interactive and Games.com Hasbro interactive and Games.com were purchased for $100 million at the end of 2000, which undoing some of the successful acquisitions in the late 1990s.

POX marketing campaign Which of the two campaign you...

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