LEGO
1. Case Issue
The question that LEGO faces is how to make products that interest all age groups. Development of a lifetime product is now becoming more of a challenge as generations increasingly flock to social media and digital entertainment, giving up many forms of traditional physical entertainment.
2. Swot
Strengths
Weaknesses
Strong brand image cross the world.
Strong product portfolio.
Strong mind brand recall.
Have a lot of licensing agreement.
Product has real life application.
Lego Theme park.
Diversified product. (Video game, TV show, Movie).
Outsource advertising.
Independent privately held company.
Limitation of products.
Product easy to copy.
Strong tie Billund community (restricting decision making, e.g. expansion, outsourcing).
Lost trademark.
Licensing agreements coming to an end soon.
Low cost in switching product lines, as competitors are making compatible toy models.
Opportunities
Threats
Increasing percentage on outsourcing manufacture within the industry.
Increasing demand on custom built.
Building sets experienced tremendous growth in recent years (20%) and expected to continue to see growth in coming years. (toyinfo.org).
Expanding Educational product market.
Growing demand on Remote Control toy.
Increasing market demand on the nostalgic toy.
Increasing market demand “on the go” toy.
Increasing percentage on establish partnership with alternative industries.
Intense competition (Dilute market share).
Video games.
Cartoon channel.
Internet.
Outdoor games.
Lack of legal protection.
Global environmental concern in the use of plastics.
Increased costs in shipping and raw materials, as oil prices increase.
3. Strategic Issue
How to keep low production costs while offering new and innovative product.
How to keep
4. Strategic Alternative
Alternative 1: Penetrate to unattached global market. (E.g. Asia and Africa)
Advantages:
New markets equal to new revenue sources.’