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LEGO Analysis
Columbia Southern University
Mkt 5301
Advanced Marketing
Dr. Johnson
September 26, 2023
LEGO Analysis
2
Almost everyone in the world has heard of LEGO. Legos are the colorful building bricks that allowed us to create things as kids that were only limited by our imaginations. This essay is an analysis of the world of LEGO. It will go into detail on how LEGO manages to continually innovate its company. The contribution of marketing research to LEGO's commercial success will be discussed. It will go into detail into how LEGO differs from its rivals and whether or not its competitive advantage is long-lasting. It will examine any possible moral ramifications with LEGO. Through the creation of a PEST analysis, the external environment will be discussed. After that, a SWOT analysis will be used to discuss both the internal and external environments. Finally, it will identify at least one organizational issue that LEGO is currently experiencing or one that you anticipate it will experience in the future, gather three to four marketing-related potential solutions to the aforementioned issue, and choose one or more of them to solve the problem.
Part 1
Reinvention.
By fusing marketing research, innovation, and tactical alliances, LEGO has been able to perpetually reinvent its industry. The company has made getting to know its customers and comprehending their requirements and goals a priority. Because of this study, LEGO has been able to create new products that satisfy client needs and preferences. For instance, in order to develop cutting-edge products, LEGO established a highly classified study and development team (Kotler et al., 2022). The company has also entered new markets, such as video games and theme parks, to stay current and attract new customers. In order to broaden its appeal, LEGO has also teamed up with organizations like Universal Studios and Nintendo.
Marketing research.
3
The company has used marketing research to pinpoint customer desires and goals and create new goods and services to meet those demands. CEO Knudstorp thought that LEGO needed to thoroughly comprehend every customer's demands and behaviors in order to rekindle their emotional commitment to LEGO products. In an effort to raise brand awareness among females, the company launched the LEGO Friends line in 2011. Boys cherished kits with fascinating histories and backstories, like the Ninjago and Legends of Chima sets, according to the company's market study, whilst girls preferred to use their LEGO sets for simulation (Kotler et al., 2022). Both boys and girls were drawn to LEGOs because of its construction aspect. LEGO has used market research to better understand adult consumers' interests and create products for them, such the LEGO Architecture series. Differentiation and sustainability.
To start, LEGO is dedicated to innovation and staying in touch with its customers. Products are created using customer feedback to satisfy their preferences and demands. LEGO has diversified into new markets including video games, amusement parks, and movies in order to stay current and attract new customers. In addition, LEGO has partnered with companies like Universal Studios and Nintendo to increase the range of its products. Yes, LEGO has an enduring advantage over its rivals. The company prioritizes innovation and maintaining a tight relationship with its customers, which enables it to stay one step ahead of the competition. In order to access their resources and expand into new areas, LEGO has forged strategic agreements with other businesses. The company is also committed to sustainability and moral behavior, which helps it preserve its competitive advantage..
Ethics.
4
Since the company is dedicated to upholding high ethical standards, it has implemented a number of precautions to that end. The business has put in place a responsible sourcing policy, which states that it only purchases from vendors that meet its ethical standards. When producing their goods, they make an effort to utilize less energy and use recyclable materials (The LEGO Group, 2020). In order for none of its suppliers to engage in it, it has also established a policy to outlaw child labor. Last but not least, the company is committed to diversity and has taken steps to create a diverse and inclusive workforce. The corporation has received praise for its initiatives to advance inclusiveness and diversity, and its products and marketing initiatives celebrate and embrace the diversity of all cultures (The LEGO Group, 2020).
Part 2
Situational Analysis
PEST analysis
Political
LEGO is expected to follow all applicable labor, safety, and intellectual property laws in the numerous nations where it conducts business. In North America and Europe, the toy industry was regulated by the government, and all products had to comply with the proper documentation and safety standards. Lego determined in 2016 that it would not ask about any customer's bulk purchases as long as the consumers agreed to not use Lego in any political work (Research and Markets Releases Report: Smart Toys Market, 2022).
Economic
Due to the fact that every country has its own rules and regulations, Lego is susceptible to
changes in currency. The management of LEGO is in charge of modifying product supply and demand to take the status of the market into account. The popularity of LEGO items has resulted
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