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Lego: Strategy Analysis & Business Model

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Lego: Strategy Analysis & Business Model

  1. 1. Evgenii, Roelof & Sjoerd
  2. 2. TEN slides - TEN models 1. PESTLE 2. Porters five forces 3. Market life cycle 4. Value chain 5. Core problem 6. Confrontation matrix 7. Canvas model 8. Canvas model +5 9. International strategy 10. Ansoff's model
  3. 3. Mission, Vision & Brand Values Mission: ‘Invent the future of ’ Vision: ‘Inspire and develop the builders of Values: • Imagination • Creativity • Quality • Learning ’
  4. 4. Company History & Profile 1932 – Started by Kirk Kristiansen – “Only the best is good enough” 1958 – Plastic cubes were introduced – “There’s one word I can say - ‘plastics’ 1966 – Lego train toy – “Who said you can’t have a train in your house?’ 1968 – Legoland Park in Billund – “Now you can be LEGO too” 1988 – Lego World Cup – “Show the world how good you are” 1997 – Lego Video Game – “You won’t lose your bricks anymore 2012 – Four billion minifigures produced – “Now we are the world’s biggest population group”
  5. 5. PEST analysis • Adverse geopolitical representation • Gender neutrality • Corporate tax games • Labor politics • Currency fluctuations • Positive economic downturn • Advanced Economies Growth • OECD Fertility Rates • Targeting China and India • Renewable Energy & Zero Waste Prog-s • Three Dimensional Printing • Virtual Platform Development • Tablet & Mobile Market
  6. 6. Five Forces Analysis Threat of new entrants – (patents, oil prices) Threat of substitutes – (simplicity, design, China) Bargaining power of customers – (B2B, retailers control) Bargaining power of suppliers – (Oil, Chem&film mkt, CoC) Intensity of rivalry – (distribution channels, online sales) Complementors – (Mega Blocks, Mattel, Oxford Toys)
  7. 7. Market Life Cycle
  8. 8. Value chain Model
  9. 9. Core problem LEGO has only 1 product, which is easy to copy.
  10. 10. SWOT analysis Strenghts – iconic brand, product portfolio, experience Weaknesses – size, easy to copy , only variations on one theme Opportunities – NEM (Asia), complex logistics, complementors Threats – trends, competition, lack of legal protection
  11. 11. Confrontation matrix SWOT Asia Logistics Partners Trends Legal Competition Brand ++ o ++ ++ - + Portfolio ++ ++ ++ + -- o Experience ++ ++ o ++ o + Size + o + -- + + Copy -- o - o -- -- Theme o o + -- o --
  12. 12. CM a o n d v e a l s Disney Warner EA Sony Paramount Schools Producing Promoting R&D HR Inspiration Brands Production Promotion Lego Duplo Friends Legoland Games Video Movie Education R&D Legoland & stores CSR Pick-a-brick Design Stores Legoland Schools Purchases Tickets Children Adults Families that are themepark visitors Children in schools Advertising Partnerships
  13. 13. CM a o n d v e a l S +5 Great wall film company Producing Promoting R&D Annapurna studios School system IKEA Production Promotion Lego Great Wall Popular movies/ characters Bollywood Furniture HR Inspiration Brands Art Education R&D Legoland & stores Stores Legoland Schools Purchases Tickets Children Adults Families that are themepark visitors Children in schools Advertising Partnerships
  14. 14. International strategy HIGH Coordination of Activities Mattel LEGO LOW Oxford Toys Geographically Dispersed Configuration of Activities Geographically Concentrated
  15. 15. Ansoff’s strategic diagnosis model …
  16. 16. Strategic recommendations • Invest in emerging markets (China, India, Mexico) • Increase market share in Eastern Europe • Expand ‘direct to customer’ activities • Increase Product Placement in Movies • Find more complementors & make exclusive agreements • Expand Lego Friends segment

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