TABLE OF CONTENTS
The essay is a strategic analysis for LEGO Group. LEGO Group is a famous toy company in the world, which established in Denmark. LEGO Brand is not only the familiar logo, but also the expectation. LEGO acts as a guarantee of quality and originality. LEGO’s core values are imagination, creativity, fun, learning, caring and quality. The essay will show strategic analysis by identifying the industry, analyzing general and industry environment, listing resources and capabilities, analyzing the company’s core competency, SWOT, current strategies. Then, giving the key issues. Finally, the essay will recommend the business-level strategy.
Identifying The …show more content…
As technology has improved rapidly, more children prefer to use iPod or iPad to play electronic games. Threat of substitute products is very high, which is very important.
Intensity of rivalry
For toy industry, there are many competitors. The rate of industry growth is slow, so companies try to use resources to expanding consumers effectively. Because product differentiation is lower, the switching cost is low. More companies enter the industry, which promoting competition.
To sum up, for toy industry, threat of new entrants is low, supplier power is low, buyer power is moderately high, threat of substitute products is very high and competition is very fierce.
It observes that the toy industry is still an attractive industry. There are nearly no barriers to entry the industry. As technology improves rapidly, new scientific research and manufacturing technology apply to the toy industry continually which due to more and more new toys with high technology. If new companies have wonderful ideas or design teams, it is easy to share the market. However intensity of rivalry is high, companies still can get consumer base by catering to the demand of consumers. Because buyer power is high, new entrants do not worry about their sale ways.
Analysis of Resources and Capabilities
Tangible resources refer to assets that can be observed and quantified, including financial resources, organizational resources, physical resources and