BNBS601
LEGO - A STRATEGIC ANALYSIS
1.
NYENRODE NEW BUSINESS SCHOOL | PIETER SMIT | IIDS2333
BNBS601
TABLE OF CONTENT
Introduction
1.
The LEGO Group - External Environment
1.1
Porters Five Competitive Forces
1.1.1
Threat of New Entrants
1.1.2
Threat of Substitute Products or Services
1.1.3
Bargaining power of the Customer
1.1.4
Bargaining power of the Suppliers
1.1.5
Intensity of Competitive Rivalry
1.2
PESTLED Analyses
2.
The LEGO Group - Internal Strategic Audit
2.1
The Value Chain
Primary Activities
2.1.1
Inbound Logistics
2.1.2 Operations
2.1.3 Outbound Logistics
2.1.4 Marketing and Sales
2.1.5 Service
Resource-based View
2.1.7
Physical Resources
2.1.8 Human Resources
2.1.9 Financial Resources
3.
Brand Equity and Corporate Reputation
3.1
Product Quality and Safety
3.2
Corporate Social Responsibility
3.3
Communication and Children
4.
Strategic Options and Recommendations
4.1
Coping with Competition
4.2
Female Market
4.3
Coping with increasing competition
4.4
Success in the digital entertainment market
4.5
Educational toys
5.
Bibliography
6.
Appendices
Appendix 1: PESTLED Analysis
2.
BNBS601
INTRODUCTION
As of February 2015, LEGO ranked is as the “world’s most powerful
brand” (Brand Finance, 2015). However, when ‘Jørgen Knudstorp’ took on his
position as CEO of the LEGO Group in 2004, the organisation was performing a
loss. In perspective, as 2004 the LEGO Group reported revenues of some DKK 6.770 million and
total expenses amounting to an approximate DKK 7.919 million (LEGO, 2012).
Fortunately, the LEGO Group is in a stable and health position again, reporting a net profit of some
$1.1 billion in 2013 (LEGO, 2013). The success of Jørgen as CEO can be attributed to numerous
improvements, such as the capital restructure or adjustments to the value chain. Currently, on
average, LEGO produces some 12 minifigures a second (Farshtey & Lipkowitz,...