Hasbro in Brazil
With 41. 9% of Hasbro sales revenue being generated internationally, it is essential that they work to maintain positive relationships with countries throughout the world. The international arena is becoming increasingly important to their revenues.
Brazil is one of several international markets that Hasbro has expanded into over the last 5 – 10 years. Not only are they shipping products to Brazil, but in around 2007 they also opened an office in Brazil.
Even with this being the case, Brazil has taken governmental measures to promote and strengthen the national traditional toys and games industry and stimulate further local production. In 2010, Brazil approved the reduction of import taxes from 20% to 2% on components to produce traditional toys and games such as electronic mechanisms and later the government increased import taxes on manufactured products from 20% to 35% to inhibit further imports, mainly from China (Toys and Games in Brazil, 2011). In a bid to remain competitive and increase market share, seven large domestic companies considered the possibility of merging to form the largest toys and game manufacturer in Brazil. While the project is still under consideration despite the challenges involved merging seven companies, three other companies, Baby Brink, Rosita and Acalanto, merged in April 2010 to create the group BBRA” (Toys and Games in Brazil, 2011). With measures such as these in place, it causes a disfavor to companies such as Hasbro.
It requires them has to work twice as hard to gain acceptance in a country that is promoting growth for their national companies. Hasbro identified one opportunity for the locals of Brazil to view them in a light other than one of an “outsider. ” In 2011, Hasbro partnered with Operation Smile Create Smiles to provide free medical treatment and toys and games for children born with cleft palate. “The medical mission in Brazil was made possible because of Hasbro. Our patients and families in Brazil are incredibly warm and vibrant, and yet the laughter and smiles of these children were hidden behind their clefts.
Today, their futures are full of hope and opportunity, and they will always remember that Hasbro helped make that happen”, said Dr. Bill Magee, Co-Founder and Executive Chairman of Operation Smile (Kraft, Jessica, 2011). By taking steps to increase their social responsibility in Brazil, Hasbro is promoting themselves in a way that will allow them to gain an increased acceptance rating and hopefully, not only make 100 children’s smiles brighter but also their bottom line.