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Lego core competencies

01/04/2021 Client: muhammad11 Deadline: 2 Day

I’m studying for my Business class and don’t understand how to answer this. Can you help me study?

read the mini case and leave common for each answer

the first part

please respond to 3 of the 5 discussion questions below. Be sure to explain your rationale

What external and internal factors contributed to LEGO’s possible bankruptcy in the early 2000s?
What are LEGO’s core competencies?
How might the core competence–market matrix show how LEGO leveraged its competencies into existing and new markets?
What explains current LEGO’s competitive advantage?
What recommendations would you make to ensure LEGO maintains its competitive advantage?
second part

one paragraph for each people about there three answers so there should be three paragraphs but each paragraph include common for their three answers of the mini case the common should be thoughtful reflection, and clear and concise comments

1

What external and internal factors contributed to LEGO’s possible bankruptcy in the early 2000s?

LEGO faced bankruptcy in the early 2000s because they hired a “highly touted turnaround expert to change its fortune”. However, even though he was an expert, he had no background in the toy industry. The new executive ran LEGO from Paris instead of doing it from Billund, since Billund was too provincial of a town. With new leadership, LEGO started diversifying too rapidly into too many areas. This lead them to stray away from their core areas which lead to their downfall. They moved away from their core and started a morning cartoon called “Galidor” as well as becoming a clothing company with LEGO branded on it. The external factor that helped in their decline was the fact that technology was developing, and kids were turning their attention away from LEGO in order to play video games on consoles.

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