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Lego: Strategy Analysis & Business Model
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Lego: Strategy Analysis & Business Model

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  • 1. Evgenii, Roelof & Sjoerd
  • 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. Mission, Vision & Brand Values Mission: ‘Invent the future of ’ Vision: ‘Inspire and develop the builders of Values: • Imagination • Creativity • Quality • Learning ’
  • 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. 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. 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. Market Life Cycle
  • 8. Value chain Model
  • 9. Core problem LEGO has only 1 product, which is easy to copy.
  • 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. 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. 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. 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. International strategy HIGH Coordination of Activities Mattel LEGO LOW Oxford Toys Geographically Dispersed Configuration of Activities Geographically Concentrated
  • 15. Ansoff’s strategic diagnosis model …
  • 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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