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Lego Group: Building Strategy
Lego Group: Building Strategy
Lego Group: Building Strategy
BUILDING STRATEGY
Agenda
Introduction
Analysis
Strategy
Implementation
Risks and Mitigations
Conclusions
New
competitors
taking market
share
Commoditizatio
n of Lego
product
Uncertainty in Disney
Licensing
presents a challenge to future
contracts
Lego has
considerable
investment in
licensed building
sets
Disneys recent
acquisition of
Marvel gives it
rights to over
5000 characters
Disney favoured
partner is Mattel
Marvel had
agreements
with Hasbro to
produce toys
Future of Disney
licencing
opportunities is
unclear
Hasbro has a
strong past
relationship to
Marvel
New Kre-O
product launch
could increase
royalty payment
tolerance
Hasbros
multiple product
lines might act
as stronger
incentive
All competing
products will
be compatible
with LEGO
Lego must
focus on its
brand values
New
competitors
taking market
share
Commoditizatio
n of Lego
product
Proven
Spiderman:
$100 million
toy sales
Integrated
Competition
Focus
on
Wester
n
Brands
Disney,
Hasbro, MEGA
Blocks
Unproven brands
Higher risk potential
Lower competition means discount
purchases
Anime
Cartoons and Movies
Popular Media
Brand
Avoid
Products
New
Licensing
Popular
Licensing
Customizati
on
Standardizati
on
LEGO stores a
proven
concept in
North America
Bring to
emerging
markets with
localized
content
Create an on
the ground
brand
experience to
engage new
customers
Special
Products
LEGO
Themes
LEGO Games
Localised
Content
Collectables
Media
Interactive
PC Games
Ipad Apps
Comics
Play Booths
Building set
Projections
Personalisatio
n's
World is going
virtual
Average 6-year
old has access
to a mobile
device
Mirroring virtual
content is
essential to
continued
success
Facebook games
Gaining
points
Buying products
Completing video game
achievements
Use of mobile
app/Zynga Facebook
games
Any LEGO Theme Park
purchases
Customizati
on of
products
Buy
products
online or at
a LEGO
store
Why
collect
points
?
Theme
Parks
Get Points
Add Points
Lego Packs
Spend Points
Personalised
-Lego Characters
Game Achievements
Enter via:
Collectable Content
-Special Editions
Comic Purchases
QR Codes
Downloaded Content
Competitors copy
our strategies
Competitors steal
our market share
Assumed Costs
Online content development
Agency at $500k
Metrics of Success
Vs. Generic
Blocks
Network
Effect
Total sales of
Local
localised content
Engagement
NonLicensed
Building
Sets
Licenced
Building
Sets
Mobile
Content
Online
Website
The
LEGO
Group
Stores and
Merchandi
se
Video
Games
Board
Games
Theme
Parks