Executive Summary

         LEGO Company is one of the famous brands in toys for children in the global
market. The company’s performance has brought success and challenges in competing
in the business industry. As years went by, the company faced many challenges with
the new entrants of the global market so they had to think of different strategies to
maintain its position in the market. The Company formulated different strategies as they
started to innovate their products. However, with all the pressure of competition the
company has faced, their strategies have led them to put more cost. The company
shifted from wooden to plastic toys and to digital platforms in innovating their products.
Thus, LEGO Company invested in research and development for the safety of its users
and for them to know more about how e-commerce works. In the modern generation,
the presence of technology helped the company to formulate a wider scope of
marketing strategies and one of those strategies is when the company had a user-linked
approach when they opened the life of Mindstorms. Furthermore, in the early life of
Mindstorms, the company discovered hackers but instead of considering this as a
threat, LEGO Company saw this as an opportunity to expand their customer
relationship. Today, with their growing strategies of innovating their products, LEGO
Company became one of the top 10 toymakers in the global market.

Strategic Agenda/ Recommendations

its users
its u s e rs
-- h a s strong
has r e la tio n s h ip w
s tr o n g relationship ith
with
p r o d u c ts
products
-- wwillingess to in
illin g e s s to invest o r th
v e s t ffor e d
the e v e lo p m e n t o
development off its
its W EAKNESSES
WEAKNESSES
-- ththee a ability o g
b ility tto e n e r a te th
generate thee id ea o
idea off in n o v a tio n
innovation --the
t h e ccost
o s t for
fo r rresearch
e s e a r c h and
and d e v e lo p m e n t
development
c o n s u m e rs o
consumers orr u s e rs
users -- the
th e cost
c o s t ffor
o r their
th e ir p ro d u c t p
product r o d u c tio n
production
-- th the o m p a n y is
e ccompany is fa m o u s or
famous or w well n o w n tto
e ll kknown o a ll tthe
all he -- th e ir product
their p r o d u c t uniqueness
u n iq u e n e s s ssince
in c e it
it ccan
an e a s ily b
easily bee
S T R E
STRENGTHS N G T H S d u p lic a te d with
duplicated w ith other
o th e r b ra n d s
brands

O P P O R T U N IT I E S
OPPORTUNITIES S WOT A
SWOT N A L Y S IS
ANALYSIS
--chance
chance o off g r o w in g th
growing e ir
their
c u s to m e r rrelatioship
customer e la t io s h ip
--hackers
h a c k e rs
- o p e r a t io n o
-operation off b u s in e s s in
business in a b ig g e r m
a bigger a rk e t
market
w o o d e n tto
f r o m wooden
from p la s tic ttoys
o plastic oys
-- theth e e ffe c t o
effect off p la s t ic p
plastic r o d u c ts a
products s th
as e y sshifted
they h ift e d
-- a llo w s th
allows thee u s e r s to
users to h ave b
have ig g e r sspace
bigger p a c e fo
forr th e ir
their
im a g in a tio n
imagination
- g r o w in g competitors
-growing c o m p e t it o r s
--the
th e p o s s ib ility o
possibility off g a in in g stronger
gaining s tr o n g e r ccustomer
u s to m e r
p r e s e n c e of
-- presence o n lin e games
o f online in th
g a m e s in thee market
m a rk e t
lo y a lty a
loyalty andnd m a x im iz e th
maximize e ir p
their r o f it
profit
T HREATS
THREATS

--
Space Matrix

Competitive Advantage Industry Strength

Product Price - -3 Barriers to new entrants - +3

Product Quality - -1 Growth potential - +5

Customer Relationship - -1 Access to Financing - +4

Product Life Cycle - -2 Consolidation - +5

Average= -1.75 Average= 4.25

Total axis X score= 2.5

Environmental Stability Financial Strength

Technological change - -2 -none since the case did not mention

Price Elasticity - -3 about the LEGO’s financial performance

Demand Volatility - -1

Competitor Price Range - -2

Average= -2

Total Y axis score= -2

 Axis with the average scores Axis Value

IE Matrix

Strong 3.0 to 4.0 Average 2.0 to 3.0 Weak 1.0 to 2.0

4.0 3.0 2.0 1.0

I II III

Total

EFE 3
IV V VI
SCORE

VII VIII IX

2
 BCG Matrix

Grand Strategy Matrix

Rapid Market Growth

When the company

The innovation from
shifted to plastic toys,
wooden toys to plastic
their product
toys has impacted
development required
positively in the
more cost for research
business's
and devlopment tfor
performance in the
the safety of the users
global market.
or customers.
Weak Competitive Strong Competitive

Position Position
The new entrants of
different brands and The company's
the growing adaptation to e-
compettition in the commerce has led to
global market affected wider scope of building
the performance of the customer relationship
company and has led and the possibility to
them to increase their grow the customer
cost to maintain their loyalty.
position in the market.

Slow Market Growth

Strategic Choice/s

The LEGO Company’s strength is in its internal factor which brought the business to a
great success. Company’s strength such as product development, building wider
customer relationship and product innovation, these aspects help the company in the
rapid growth of competitive market. Their level competition to compete in the global
market has helped the company to maintain its position as one of the best toymakers
worldwide. Moreover, LEGO Company’s strengths in innovating their products and
adapt the updates in the environment allowed the company to surpass the threats
especially with the presence of modern technology

References

LEG (strategosinstitute.com)

270606206.pdf (docshare.tips)