The Lego Group Building Strategy Case Study

 

1960

Expanded sales

 –

Europe,US, Canada, Japan& Australia

Expanded to 200 different shapes of brick design

Introduced new brick DUPLO

 –

eight times the original lego brick

1970

2500 employees

 –

new innovative series for girls

 –

doll houses,furniture, ships

LEGO TECH Series

 –

mechanical moving parts,

town featuring city characters, astronauts & Spacecrafts

1980

50

th

year 

 –

1982- expanded to educational line for Schools and DUPLO Baby Series

Introduced light and sound series , addition to their tech series ( motors controlled by computer)

1990

Top 10 largest toy manufactures

 –

7000 Employees -Exclusive lego stores

Lego manic slogans through TV ads launched their own website in 1996 Lego computer games

 Acquired license to movies and children themes

2000

Licensed rights to Harry potter , Spiderman batman etc

Special sets to adults

 –

expand traditional video games

THE LEGO GROUP CASE STUDY 2 The LEGO Group Case Study Brief history of the LEGO Group The LEGO Group was founded in 1932, when Ole Kirk Kristiansen, a Danish carpenter, together with his sons began to make wooden toys following a decline in the demand for furniture. There first toys included wooden vehicles, yo-yos, pull-along animals, and wooden blocks. Kristiansen endeavored to ensure all the products conformed to the company’s motto ‘ only the best is good enough ’ by using high quality materials and workmanship while making the toys. In 1934, Kristiansen created the company’s name ‘LEGO’ from two Danish words leg and godt , which means play well . After approximately 10 years in the business of toys, a disaster hit Kristiansen’s small company as its entire workshop was burned to ashes. However, Kristiansen did not give up. He rebuilt the workshop and remade all the company’s designs from scratch. Since then, the company has grown into a multinational corporation, and it is among the largest manufacturers of toys in the world. It is headquartered in Billund, Denmark, and it is still owned by Kristiansen’s family. This paper intends to provide a detailed evaluation of the LEGO Group by analyzing the company’s internal and external environment using tools such as the SWOT analysis, Porter’s Five Forces, and PESTLE analysis. Key Issues  In the contemporary society, children are developing faster than in the past few decades and as a result, the company may be compelled to drop some of its products because of low sales.  Downturns in economies of the countries that act as LEGO’s target market may cause a significant decrease in sales leading to closure of some facilities.  If both the new entrants and the existing firms continue to enhance the quality of their products, LEGO’s overall market share will decline because of the resulting increase in competition.  Cheaper substitutes from new entrants into the toy industry may compel LEGO to lower its prices. This in turn will cause a decline in the company’s net revenue.  Loss of trademark protection  Increased control over different licensing agreements External Analysis of the LEGO Group PESTLE Analysis Political Global companies such as LEGO are usually affected by various political factors. Political factors include laws, government policies, and the administrative orientations adopted by different countries as well as regional economic blocks. Political factors in a given country or

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