The Lego Group Analysis

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BUSI 1484 – Managing Strategy Portfolio 1 The LEGO Group Analysis June 26, 2013 Word count: 1,517 Table of contents Title | Page | 1. Application of the PESTEL analysis | 3 | 2. Application of the Porter’s Five Forces Analysis | 4 | 3. Application of the TOWS Matrix | 6 | 4. Conclusions | 7 | 5. Figure | 8 | 6. References | 8 | In this assignment the LEGO Group are examined by using a PESTEL analysis (Turner, S., 2002,), Porter’s Five Forces framework and TOWS matrix, based on the information from the case study “The LEGO Group: working with strategy” by Anders Bille Jensen, University of Southern Denmark, and sources from internet. Application of the PESTEL analysis:#1 CONTEXT | FINDINGS…show more content…
Therefore, I concluded that the threat of new entrants is moderate to high. (4) 4. SUBSTITUTES There are numerous types substitutes available to occupy a child’s free time: from toys of all different brands, to cartoons and comic books, or snacks as comfort food, sport outfits and other digital entertainment options. 5. RIVALRY AMONG THE EXISTING PLAYERS This brings the highest pressure to LEGO, since there is almost no switching cost and barrier for customer to choose for another brand of toys. The rivalries are included the traditional toys manufactured by such as Mattel and Hasbro, or electronic gadgets by Sony, Nintendo or any other computer games. According to the case study, children seem to mature earlier, get bored fast, they prefer to play with more exciting toys and switch to substitutes. However, the prices of substitutes are varied; it depends on the adult’s budget. (5) Application of the TOWS Matrix: WEAKNESSES AND THREATS (WT) LEGO Group was in a critical condition in 2003, a survival strategy was launched by developing a popular theme Harry Porter and Star Wars in 2004, which could stand out from its competitors and also to answer the call of mature children. WEAKNESSES AND OPPORTUNITIES (WO) The changing of customers behaviors which leads the sales dropped in the mid 1990’s, and resulted in switching to other substitutes such as electronic gadgets and other brands of

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