Hasbro Company PESTLE & SWOT Analysis
Executive Summary
Organizations, through their management, always conduct the environmental analysis before developing a new product and distributing it to the consumers. Practical environmental analysis tools are put in place to enhance the process that the various environmental factors are considered before releasing a product in the market. Examples of analytical tools that may be used are the PESTLE and SWOT analysis tools. Both the micro and macro environment matters a lot as it determines the operations of most organizations and their future sustainability. Leadership of organizations needs to take a keen consideration while studying the environment and ensure it is suitable for operations and can support activities effectively without the development of any technical hitch. The report, therefore, discusses the analysis tools of PESTLE and SWOT as used by Hasbro Company in determining the launch of a new product into the market. The various macro and microenvironment aspects of operations of Hasbro are also discussed, including competition, the mission of the organization, and also the aims of the organization in improving the consumer experience. Various recommendations are put in place to further utilize the opportunities to encourage the product launch.
Introduction
Companies develop new products that are tailored to meet the present consumer gaps and assure profitability within the given trading period or fiscal year. Hasbro is one of the organizations that are continually checking their operational environment. Such analysis ensures that its products and operations adapt with the changing environment. The analysis leads to further modification and development of products that would ensure there is no conflict with the environmental factors when launching or developing a new product. As the marketing consultant in the future product launch, the following elements can be addressed before the launch.
Mission/ key goals and core customer group
Hasbro Company specializes in the line of producing toys and entertainment products and services to its consumers. The company has also majored in television programming, digital gaming, motion pictures, and also content development majorly in Canada and the United States and also in Australia. The company, which is headquartered in America, has gained international attention in the production and its efficiency in the market of its operation. The company currently stands as the third-largest toymaker in the world with its global presence in a different region. The main mission of Hasbro, as stated by its mission statement, is to create the experience in play and gaming worldwide. The company, therefore, has devised various techniques that would ensure that the consumer experience of gaming is achieved at maximum. The aims are, therefore, to create joy and happiness among the consumers not only in the United States and Canada but also in other parts of the world, such as the Australian market. The experience is, therefore, enhanced by the increased creativity through which products are made and launched before being released to the consumers. The quality of products is key to Hasbro Company as it is seen to be the major need of consumers. In meting such quality and enhance better consumer experiences, Hasbro has lined its employees to work efficiently and observing the company values for maximum consumer benefits. Some of the core values of Hasbro Company include encouraging community cooperation and working together as a family. Also, the company also values and cultivates the aspects of integrity, creativity, and passion among its employees, which is then seen in product development and consumer relation.
The company, just like its competitors, has a specific market and target consumer group. The organization focuses on children, as seen by the line of product operation of toy production. The organization also focuses on the entertainment industries popularly with gamers, especially the youths who engage more in video gaming and other digital forms of entertainment. Most of its products various distribution lines such as wholesalers, retailers and also sold online through various online sellers such as Amazon.
The organization wants to launch a new product in the market. Therefore the following analysis may be done in ensuring product success after its launch and released to the consumers for purchase and consumption.
PESTELE Analysis
PESTELE analysis considers the macro-environment in which the organization operates in. The various environmental factors that are analyzed through the PESTELE tool are the political, economic, socio-economic, technological, ecological, and the legal environment.
The political environment is important in determining the various factors that may influence its operation in the different countries hence the profitability of the organization in the long run. The political factor that faces Hasbro when launching its new product may include elements such as intellectual property protection, the need for toys in the country of operation as well as political stability. In addition, the company should consider the anti-trust laws which may influence the usage of toys and the tax levied on the toy products. Most of the nations in which the company operates in have adequate measures that are put in place to protect intellectual properties. Therefore, this would encourage the management to continue with its operations in various countries. The tax regulatory measures and those levied on the toys are also friendly in Australia hence encouraging the development of the product. Moreover, the country appreciates the need for toys and thus encourages the new product launch hence favorable for Hasbro.
The economic factors of the environment, such as saving rates, inflation rates, and also interest rates, may determine the demand for Hasbro’s product. The economies in which Hasbro operates are stable, with stable currencies in place. Therefore such would encourage continuous purchase without any disruptions in activities. The company also operates in an environment that encourages toy production. This would be supported by the presence of a skilled labor force that would help in further production and modification of the new product hence encouraging the company to operate. However, the existence of some high labor costs for toy productions would discourage the sustainability of the new product. However, this may not hinder the operation of the organization adversely due to the presence of a large workforce, which may provide cheaper service when trained.
The social activities and cultures within the Hasbro environment influence its activities and how operations are done to avoid conflict with the social world or society around. Hasbro needs to consider various factors such as the culture of the community, demographic composition, and attitudes of individuals towards toys and leisure activities of the society. The company may use the fact that the majority of the population targeted uses toys and other video games and falls within the youth gap, therefore, encouraging toy usage. Moreover, more individuals have a positive attitude towards toy usage and leisure activities such as video games and programming hence encouraging the production of the new product.
Technology is on the rise and thus a factor influencing the operations of most organizations, including Hasbro Company. When launching the product, the company needs to consider factors such as technological impacts on the cost of the product, the type of technology use and its rate of diffusion. Moreover, the company needs to consider the types of technology the competitors are using the production of the toys. Thus, technology plays a significant role in determining product success.
The ecological factors may impact the production of the new product. The product should be tailored to ensure that the existing weather conditions do not affect the product. The organization should consider the implementation of environmentally sensitive products and also a clear implementation of frameworks that should ensure that it supports the environment of operation. The legal environment should also be a consideration for the company to operate effectively and efficiently without friction with the existing country laws. Hasbro Company, therefore, needs to consider the legal factors to ensure the product entry is welcome and is a success in the operations of activities. The product, therefore, needs to consider the industrial laws in the area of operation and compliance with the legislation put in place in the country of operation. Therefore, the PESTEL factors need to be considered with each element given scrutiny to ensure no factor is conflicting with the other hence product success.
Competitive Environment
Organizations operate in an environment that poses both direct and indirect competition. Competition is essential in every industry as it is the source of improvement of various products as organizations go against each other to satisfy the consumers. Hasbro also operates in an environment full of competition with various competitors in the picture. Being the third-largest toy producer, it is evident that there is the presence of competitors that the company needs to outshine to become the ultimate market leader and even claim the global number one position. The notable competitors of Hasbro in toy and entertainment production include Mattel, Lego, and Moose companies. Lego is the market leader that is boasting huge returns in the industry. Mattel is another company that is boasting a significant share in the economy, with Moose having a smaller proportion of the market as compared to the other organizations. The competitors have contributed to coming up with more efficient products of the company with adoption and keeping check of the existing technology and making adaptations to future use of toys. The environment, however, enjoys fair competition as there is the presence of a good working relationship with the different organizations to come up with environment-friendly products.
SWOT Analysis
SWOT analysis is an analysis tool that is used by organizations to determine both the internal and external environmental factors. The aspects analyzed are the strengths, weaknesses, opportunities and threats an organization faces in the course of its operations. The Strengths and weaknesses cover the internal factors while the opportunities and threats consider the external factors influencing the operations of the organization. Hasbro Company needs to conduct a SWOT analysis for the launch of the new product to be a success.
Strengths refer to the internal factors that positively enhance performance, and thus Hasbro should consider its strengths and enhance them for further improvement in production and performance. Hasbro’s strengths include a strong global footprint across various markets, including Australia, established mini-retail partnerships and also a strong brand that ensures a consistent flow of financial revenues and performance to enhance its activities. However, Hasbro also has some weaknesses that challenge its operations and puts it in a disadvantaged position. The major weakness is the overreliance on franchises and licenses to enhance its operations, which may prove otherwise incase the licenses are revoked. The other weaknesses include over-reliance on other third-party manufacturers and the tinted brand image as a result of allegations of poor working conditions provisions.
The opportunities, on the other hand, refer to the various environmental elements and avenues that an organization can utilize to its advantage. The environment of its operations has an ever-increasing retail landscape, which the company may tap to its advantage more sales and distribution of the new product launched. In addition, there is also the increased use of toys for educational purposes and the broadening in entertainment base within the region. There are also threats that the organization faces. Threats refer to the various factors that would trouble the organization. The threats facing the organization include increased competition from competitors such as Mattel and Lego. Besides, there is the rising popularity of toy box subscriptions, which may negatively impact sales and the increased market presence of counterfeit goods. Therefore, the company needs to analyze the strengths and weaknesses and put corrective measures where necessary to enhance performance and navigate potential troubles.
Brand Extension Product Line Recommendations
After a critical and extensive analysis of the various factors affecting the organization both negatively and positively, the following recommendations may be put in place to determine the product launch;
- The company should launch the product as a result of the large toy market present in Australia, which is significant in product purchase. In addition, the increasing retail landscape would provide more avenues for product distribution. The Australian market has a positive attitude to the consumption of toy and entertainment products as determined by the economic factors of the environment.
- The product should also be launched to exploit the opportunities present as determined by the SWOT analysis. The product would tap the lucrative educational sector, which has started using toys for educational purposes, encouraging product launch.
- The company should also launch the new product since the Australian market experiences a peaceful political environment with a more stable currency, and there is no possible risk of military invasion from any sphere, encouraging the launch.
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