The Lego Group Analysis
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 | POSITIVE IMPACTS | NEGATIVE IMPACTS | POLITICAL | Higher import tax in some countries, prevented LEGO to enter these markets before 1980’s. | Lego has to outsource its production line in those countries, it can lower the production cost, making the products to be more competitive with rivalries. | Difficult to control intellectual properties, and its supply chain. | ECONOMIC | Outsourcing 80% of the products in the Eastern European countries and remain only 20% in its base in Billund. | Significantly reduce the production cost by outsourcing to developing countries as other direct competitors. | Possibly unwelcome by their devotees since the product is no longer produced by Danish labors. Meanwhile, supply chain and QC will become a setback to the group. | SOCIO-CULTURAL | According to the market research in 1995, showed that children seem to mature earlier and demanding more from the toys. | Lego has to strive for strategic, innovative development rather than relying on the past success. (2) | There is no absolute key for successful strategic plans. Any major change of business decision will face the risk of total failure of the company. | TECHNOLOGICAL | In the past 25 years, the computer game has taken place in toy
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 | POSITIVE IMPACTS | NEGATIVE IMPACTS | POLITICAL | Higher import tax in some countries, prevented LEGO to enter these markets before 1980’s. | Lego has to outsource its production line in those countries, it can lower the production cost, making the products to be more competitive with rivalries. | Difficult to control intellectual properties, and its supply chain. | ECONOMIC | Outsourcing 80% of the products in the Eastern European countries and remain only 20% in its base in Billund. | Significantly reduce the production cost by outsourcing to developing countries as other direct competitors. | Possibly unwelcome by their devotees since the product is no longer produced by Danish labors. Meanwhile, supply chain and QC will become a setback to the group. | SOCIO-CULTURAL | According to the market research in 1995, showed that children seem to mature earlier and demanding more from the toys. | Lego has to strive for strategic, innovative development rather than relying on the past success. (2) | There is no absolute key for successful strategic plans. Any major change of business decision will face the risk of total failure of the company. | TECHNOLOGICAL | In the past 25 years, the computer game has taken place in toy
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