Company Profile of Lego

Lego is world renowned toy manufacturing corporation. The corporation is famous for its Lego bricks and also a major producer of educational toys. Lego was formed in the year 1932 in Denmark. Ole Kirk Christiansen was the founder of the corporation. According to the statistics of 2009 the company becomes the 5^th biggest producer of toys across the globe. The business & corporate level strategies of the organization have played major part in evolution of the company. The key product of the company is Lego bricks. In the past few years, the organization has witness enormous growth with respect to productivity.

External Analysis of Lego

Opportunities of Lego

In the past few years, the corporation has achieved financial success due to increase in profitability. However, there are competitors in the industry and in order to sustain competitive advantage over their competitors the company has to focus on the demands & preferences of their customers. Although there are limited competitors in the industry it is important to continuously innovate over time. There are many opportunities for the business. The business can expand its services to those countries where it does not exist currently. The business can diversify its product as well with the passage of time.

Threats of Lego

            The performance of the Lego Corporation is better than its competitors because the profitability of the corporation has increased over the period of time however the competitors can impose a threat on the corporation because the competition in toy industry is high and customers can easily switch to another company due to less switching cost.

Porter Five Forces Analysis of Lego

Bargaining power of Buyers of Lego

The bargaining power of buyers is high because of low switching cost and many substitutes are available which increase the power of buyers.

Bargaining Power of Suppliers of Lego

The bargaining power of suppliers is high because the corporation is depended on its suppliers for the delivery of material that is required for production.

Substitute of the product of Lego

            There are companies who produce somewhat the identical products and customers can easily switch to those products if Lego is not going to satisfy the demand of its customers

Threat of New entrants of Lego

            The threat of new entrants is medium because Lego is already an established brand and other companies might face difficulty to create image in the mind of the customers. It would take time to establish a brand.

Rivalry among Competitors

The rivalry among competitors is high because every company wants to grab the market share and want to serve the need of the customers. Overall, the porter five forces analysis indicate high competition in the market.

Internal Analysis of Lego

Strength of Lego

One of the major strengths of the business is its strong brand image and goodwill which it has created over the period of several years. Lego focuses on safety and quality of its products. In recent years the company has experienced strong financial growth which is the strength of the corporation. Lego is also focusing on innovation which allows it to gain competitive edge over its competitors.

Weaknesses of Lego

            As Lego is a toy manufacturing corporation the toy creates major impact on the environment if are not disposed accurately.  Moreover, Lego charge high price from its customers with respect to its competitors who charge less. It is important for the corporation to focus on its pricing so that the products remain affordable.

PESTLE Analysis of Lego

Business Level Strategy of Lego

The competitive business strategy that the Lego Corporation follows is differentiation. Lego keeps on producing toys in such a way that it makes it standout from rest of the competitors. Through focusing on safety and high-quality product of Lego are unique. The differentiation strategy has proved successful for the corporation and one the major reason behind the profitability of the firm. Due to differentiation, the company is able to charge high price from its competitors.

Corporate Level Strategy of Lego

The corporate level strategy of the business focuses on sustainability and accomplishment of goals. The company want sustain for he longer period of time. For sustainability the company continuously upgrades their products so that I can meet the demands of its customers. The company have set goals and adopted the plan to achieve those goals successfully.