Lego Questions

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University of Illinois, Urbana Champaign *

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458

Subject

Marketing

Date

Jan 9, 2024

Type

docx

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1

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How could Lego lower the influence product and marketing development (PMD) have on its sales? - Products from Lego’s PMD make up 95% of its yearly sales and this reliance does not make production and sales forecasting easy. Should Lego make “evergreen” products that some customers will constantly buy in hopes to smooth the volatile nature of creativity? Does this allow Lego to adjust to consumer tastes or are they a slave to them? Should Lego enter Eastern Asian markets? - The one untapped global region for Lego is the Eastern Asian markets, so getting bricks there is important to diversifying their markets and increasing sales revenue. One impactful barrier Lego would need to overcome in this market would be the knockoff companies taking their profits. Without the same intellectual property protection as western countries, it seems difficult to convince customers to buy Lego product especially when the company outsources some of their own products to this region. How do Porter’s Five Forces apply to the games industry? - The games industry has been notoriously dominated by players like Hasbro and Mattel, but has Lego’s brand grown enough for them to enter? Regardless of the game they produce, can they enter this market knowing rivalry is intense and that their competitors games are extremely mature products (ie Monopoly, Connect 4, Battleship, etc)?
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