7. External Environment factors key to HASBRO Economic Conditions Consumption down, Per capita income Down Sociocultural/Demographic trends Age compression Traditional Toys not acceptable in society Technological Video games, PCs, rapid development of affordable high tech entertainment. Political/Legal Heavy regulatory environment- taxes expected to rise in future Global Cheap manufacturing abroad, low regulatory environment abroad, Growing markets in East Asia
8. Porter’s Five Forces Threat of New Entrants Mature industry Large initial investment, and low growth industry Bargaining Power of Suppliers Raw materials cheap to acquire Licenses difficult to acquire Bargaining Power of Buyers Department stores & Big Box retailers drive sales Substitutes Many substitute goods Intensity of Rivalries inside industry Mattel is a bitter rival
26. The Hub, kids television channelMarketing: Short-term: Milk digital media rights for classic products Long-term: Focus on licensing of new media driven characters