Lego Group - Building Strategy

In: Business and Management

Submitted By schlupfer88
Words 1550
Pages 7
Section 1: Analyzing LEGO’s Business Environment 1.1 Two Major Trends in the General Environment Worth Considering 1.2.1 Technology
Development in technology affects how businesses are run in all aspects. The toys industry is no exception. The leading trend that is relevant in this case is the increase in leisure time spent on digital games as opposed to physical toys. Children are playing computer games at a younger age, eroding the share of their playtime that was once dominated by toys. 1.2.2 Demographics
In developed countries, aging population coupled with lowering birth rates are the primary driving forces for industry players going forward. I believe that this should provide implications on the future directions that LEGO should take. 1.2 External Environment – SWOT Analysis 1.3.3 Strengths and Opportunities
The LEGO brand itself is entrenched deeply within the building toys industry. This strength is especially valuable to certain sub-industries under the broader toys industry such as infants’ toys and serious gaming. LEGO is also a trusted brand in education and with parents. LEGO can leverage on this strong brand name to perhaps explore opportunities in non-traditional markets such as the silver industry. LEGO, being an established brand that the older generations are familiar with, can expand into these industries. In addition, the trend towards more playtimes spent on computer games opens up the digital market for LEGO as well. The culture of innovation and LEGO’s unique product offering – providing building blocks for players to create and invent is a valuable and complex strength embedded in its organizational culture that can be used to reliably gain a foothold in the digital games market. 1.3.4 Weaknesses and Threats
The consolidation of licenses under Disney, coupled with LEGO’s reliance on…...

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