Hasbro, the maker of games like Monopoly and Scrabble, saw profits fall 15% during a disastrous Christmas season. This sharp decline is due primarily to Hasbro’s strategy of focusing on movies and television. Rather than producing innovative board game offerings or investing in the rapidly growing online gaming market, Hasbro has spent most of its resources on trying to develop movies and TA shows based on its toys and games, such as the Transformers movie franchise and most recently, Battleship. All of its businesses are related to entertainment. Which of the following best describes Hasbro’s strategies?
| a. |
Single business strategy |
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| b. |
Unrelated diversification |
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| c. |
Related diversification |
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| d. |
Acquisition |
Unrelated diversification
Unrelated diversification is a strategy where business adds unrelated product line to its existing product line. Hasbro started films and tv shows that are unrelated to board games.
Hasbro, the maker of games like Monopoly and Scrabble, saw profits fall 15% during a disastrous...