LOGO case study
Mgmt3347 individual case study
TABLE OF CONTENTS
Introduction
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 Industry
Toy retail market increase 4 per cent per year in a moderate pace in 2010, but the demand for the specific fashion toy may surge or collapse rapidly. Thousands of toy manufacturers serve the global market, but the few lead industry. Mattel is the world's leading toy manufacturer in revenue. LEGO is the world's the third largest toy manufacturer. There are more and more toy manufactures in Asia because its labor is cheap and many subcontractors are ready to produce goods in behalf of their manufacture. Toy makers sell products through various retail channels, including chain stores, discount stores, independent toy specialists, department stores and online stores. There are three points, which need to pay attention to. Firstly, fad toys are more popular and the product life cycle decrease. Additional, children have more after-school activities. Finally, more kids choose online activities more than toys. The substitute product for toys is electronic games.
Analysis of the general environments
Economic element
Generally, the word’s economy is still unoptimistic in the recent. Although European debt crisis has been lightened conditionally, its negative effect to global economy still last for a certain time. Labor cost is
TABLE OF CONTENTS
Introduction
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 Industry
Toy retail market increase 4 per cent per year in a moderate pace in 2010, but the demand for the specific fashion toy may surge or collapse rapidly. Thousands of toy manufacturers serve the global market, but the few lead industry. Mattel is the world's leading toy manufacturer in revenue. LEGO is the world's the third largest toy manufacturer. There are more and more toy manufactures in Asia because its labor is cheap and many subcontractors are ready to produce goods in behalf of their manufacture. Toy makers sell products through various retail channels, including chain stores, discount stores, independent toy specialists, department stores and online stores. There are three points, which need to pay attention to. Firstly, fad toys are more popular and the product life cycle decrease. Additional, children have more after-school activities. Finally, more kids choose online activities more than toys. The substitute product for toys is electronic games.
Analysis of the general environments
Economic element
Generally, the word’s economy is still unoptimistic in the recent. Although European debt crisis has been lightened conditionally, its negative effect to global economy still last for a certain time. Labor cost is