Swot анализ компании lego

Обновлено: 07.05.2024

The Lego Group is a toy manufacturing Danish company. The flagship product, Lego, comprises of a variety of interlocking plastic bricks. They’re along with Minifigures and many other connecting parts. You can build robots, buildings, and vehicles by assembling those small plastic bricks.

The brand, Lego, was founded in 1932 and has been producing interconnected brick toys since 1949. The company has manufactured and sold approximately 600 billion Lego parts as of 2015.

Lego is a family business. The brand uses the network of retailers, toy stores, and the company’s independent stores to sell its product, Lego. The assembling bricks are of different colors, designs, and sizes to attract the attention of kids.

Today, we’ll study the swot analysis of Lego. Here we’ll be focusing on the internal strengths/weaknesses and external opportunities/threats of the toy manufacturing company.

Here’s the swot analysis of Lego as follows;

Table of Contents

Lego’s Strengths

Following are the major strengths of Lego.

Multiple Combinations

As we know that Lego comprises interconnected plastic bricks. Kids can use them in a variety of combinations. According to an estimate, you can use a set of 6-8 stud lego to make 915 million combinations.

Creativity

Lego isn’t just a game and a toy. According to a research study, children who play with Lego and build different combinations have got a better gross motor and intellectual skills. It helps them to express themselves creatively.

Global Brand

According to an estimate, Lego is operating its business in more than 130 countries across the world. The company has got over 570 Lego branded stores where it sells its products.

E-commerce

The trend of online shopping and e-commerce has increased in recent years. Lego has also got its online e-commerce platform along with its network of retail stores. The company sells 1 in 3 Lego toys at its online store. The online retail of the company has increased by 27% in 2020 compared to the growth rate of 2019.

Community

The brand has also established a platform by the name of “Lego Idea.” The goal of this platform is to promote creative Lego building ideas and maintain excitement. The platform also organizes different types of contests to keep up the interest level.

The Lego building fans send their innovative ideas to the platforms. The judges check their creative skills and declare a winner. The whole process increases the customers’ engagement and their loyalty to the brand.

Links with Movie Franchises

Lego has successfully established links with some of the blockbuster movie franchises. Like Harry Potter, Star Wars, F.R.I.E.N.D.S, Marvel, and Lord of Rings. It helps the company to attract the fans of these movies.

Variety of Themes

Lego offers different types of themes to its customers’ audience so that the children would have a better playing experience. It also refreshes and brings back the memories of adults.

Lego’s Weaknesses

Following are the noticable weaknesses of Lego.

Expensive

The deals with successful movie franchises cost a lot of money to the money to the brand. The brand transfers the franchising cost to the customers by increasing the retail per product price. It makes the interconnected bricks of Lego very costly. The price-conscious customers replace the toys of Lego with some other cheaper brand’s product.

Research Cost

Lego offers brick building games for different categories of age groups by adding unique ideas into them at different levels. The focus of the brand is not to repeat the ideas because it helps the company to maintain the interest level of customers. It’s good for the customers, but it adds a lot of research and development costs.

Children TV

Hasbro has recently bought a children’s TV network by the name of eOne. The company would promote and push its products by using the TV network and channel. Hasbro is a famous competitor of Lego. The entertainment platform would help the competitor’s company to increase its sales.

Video Games

The trend of playing video games is growing very aggressively among children and teenagers. The gaming portfolio of Bandai Namco’s is approximately four times larger than the catalog of Lego’s games. The company must add something interesting to its games to strengthen its video games. It would help the company to remain competitive in the market.

Clones of Lego

The fake clones of Lego are disturbing the share value of the company. The brand couldn’t stop the fake clones. Even since the patent and copyrights of Lego expired in 1980, many competitor companies jumped into the interconnected bricks manufacturing industry. They have also started offering the same products and Lego couldn’t file a lawsuit against them.

Lego’s Opportunities

Below are the opportunities for Lego.

Creative Toys

The focus of parents is to develop the intellectual and creative skills of their children. Lego performs the same function. Therefore, the company should convince the parents through advertisements that it serves two functions.

Derive towards Learning

The brand has also taken two major steps; Lego Foundation and Lego Education. The purpose of these steps is to promote education and learning through playing games. It follows the mission of the company and that’s to develop the nation for tomorrow.

Personalized Touch

The interconnected bricks building toy has got great potential in the creative field. Warhammer and other franchises have established a strong foundation in the personalization business. Lego should add a personalized touch to its product if the company could take some ideas from other brands.

Subscription Model

Lego should follow the subscription-based business model. It means that the company should deliver monthly boxes to subscribers with new building ideas. It would help the company to interact with its target audience.

Virtual Reality

The video games of Lego aren’t following the concept of virtual reality games. They don’t engage their users. The current video game of Lego wants kids to interact with the toys by using the augmented reality application of Lego.

New Markets

Based on Lego’s annual report statistics, 90% of the children comprising of 2 billion would be residing outside of North America and Europe by the end of 2030. The majority of these children of approximately 3 quarter would belong to East Asia. Now, Lego should base its future strategy on the developing markets.

Lego’s Threats

Following are the biggest threats to Lego.

Counterfeit Products

Some manufacturers don’t just copy the idea of Lego. They go one step ahead by using the logo of Lego. They sell products and deceive customers claiming that they’re Lego which they aren’t. The poor quality products jeopardize the market and growth of the main brand.

Higher Competition

The toy market is competitive and the competitors have the market share of the head to head and toe to toe. Even a small margin would help them to win the market. Therefore, Lego should always outsmart its competitive market with innovative products and ideas.

Video Games

The video games on smartphones are more intriguing than conventional games. The children are more tending towards them. In other words, smart games are threatening the market for traditional games.

Environmental Issues

Plastic is the main ingredient of Lego’s bricks. It means that the company relies on petroleum products. It contradicts the basic ideology of the green peace movement.

Pandemic of Covid-19

The pandemic of covid-19 has shutdown 570 stores of Lego. They are the major source of the company’s sales. The company couldn’t achieve its main goal of learning through games in 2020.

The Lego group is a toy company based out of Billund Denmark. Lego is a family owned business and the toys are a group of interlocking bricks made of plastic. The Lego Group has been associated with the construction of a number of amusement parks in various parts of the world under the name Legoland. Lego is sold through a network of their independent stores as well as toy stores and retailers across the world.

The company was founded in the year 1932 by Ole Kirk Christiansen. The word “lego” comes from the word”leg godt”, which is the Danish version of “play well”. The bricks which are of various sizes and colors are to be interlocked together in designs which are provided and patterns prescribed to build toys which can be dismantled and rebuilt any number of times.

Today Lego sells toys for kids from the age of 4 years and upwards. Currently, Lego is the market leader in toys with sales of USD 2.1 billion crossing the market leader Mattel which is close to 1.9 billion USD on sales.

Table of Contents

Strengths in the SWOT analysis of Lego :

Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Lego:

Toy with a difference: Lego is a set of bricks which can be subject to a varying set of permutations and combinations. It is estimated that a set of six eight-stud Lego bricks can be used to develop 915 m different combinations.
A form of creative expression: Lego is more than just a toy. It is treated as a form of creative expression and research indicates that kids who regularly play with Lego toys have superior fine and gross motor skills.
Variety of options: The variety of options available for creativity from a set of Lego blocks if often not just a game but also a challenge to its users and thus these options are addictive.
Tie-ups with movie franchises: Lego has been associated with Harry Potter and there has also been a movie titled Lego which has been able to attract the attention of the major target audience which is children.
Multiple Themes: Lego Toys has multiple themes and licenses under its belt and while it churns out new and amazing creative experiences for the children it is associated with a lot of refreshing memories for adults.
Attention to detail: Lego Toys has always been popular for their attention to detail. The intrinsic detailing in each block ensures a perfect fit and this is the unique selling proposition of the toy.

Weaknesses in the SWOT analysis of Lego :

Expensive: Lego toys are extremely expensive and is considered to be unaffordable for most people in the middle income and lower strata of society. Thus the toy is accepted by only a niche audience.
The high cost of research: The USP of Lego is about age appropriate toys where each new idea is customised to suit the respective age group for which it is intended. The company tries never to repeat its designs which means that the research element is critical and this increases the research cost.
Cost of material: Lego is made of ABS plastic which is custom designed to accommodate Lego bricks. This material is high-grade plastic and is on the expensive side.
Taste of customer: Though Lego positions itself as a toy for kids of all age groups, not everyone develops a taste of the toy. Thus very few kids really understand how to play with Lego and enjoy playing with it.

Opportunities in the SWOT analysis of Lego :

Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Some of the opportunities include:

More parental focus on creative toys: As families become nuclear, the focus of the parents on the skill enhancement of their children.This is making them invest in toys like Lego which are known to be beneficial for motor skills and brain development alike.
Increase in activity driven learning: Schools today focus on experiential learning and thus makes them look at interesting toys that can teach the student’s core concepts. This has resulted in many schools choosing to invest in educational toys. This is an opportunity for toymakers.

Threats in the SWOT analysis of Lego :

Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:

In this Lego SWOT analysis for 2021, you will see what makes this Danish company one of the biggest toy companies in the world. Lego, well known for its toys based on interlocking bricks, was founded in 1932 in a carpenter’s small workshop in Denmark.

Ole Kirk Kristiansen, founder of Lego, started by making simple wooden toys. But in 1958, he patented the interlocking bricks design. The patent changed Lego’s fortune. In the course of the next 85 years, Lego became a multi-billion-dollar company.

Voted the “Toy of the Century” twice, Lego is a giant in the toy sector. So, what’s Lego’s strength? What propelled Lego to the top? And what is helping Lego stay there? Let’s find out.

What are Lego’s major strengths?

Before we get into what are Lego’s strengths, let’s look at what “strength” means in the context of SWOT analysis. Strength is an internal quality that helps the company grow. It’s different from “opportunity.” In SWOT analysis, an opportunity is an external quality that helps the company prosper. With those definitions and distinctions clear, let’s look at Lego’s strengths:

Global Presence: Lego sells its products in 130+ countries. The company has 570 branded stores worldwide.
Innovation: Every year, Lego refreshes 60% of its product catalogue. New products keep the children excited about their next Lego set year after year.
Licensing Deals: Licensing deals with franchises such as Star Wars, Harry Potter, DC Comics, Marvel, Lord of the Rings, and, most recently, F.R.I.E.N.D.S. helped Lego ride the pop-culture wave to profits.
E-Commerce: One in three toys bought are bought online. In addition to its retail stores, Lego also has a strong eCommerce platform. This year, Lego saw a 27% increase from the last year in traffic to its platform.
Community: Lego created a platform called Lego Ideas to promote Lego enthusiasts to showcase their creative skills. The platform host activities and contests. It also allows fans to submit product ideas to Lego. Involving their audience in product building is a masterstroke in growing engagement and loyalty.

What are some of Lego’s weaknesses?

Just as the word strength has a specific interpretation in SWOT analysis, so does the word weakness. In this case, Lego’s weaknesses are internal situations that are bringing Lego down. Weakness, in SWOT analysis, is different from threat. A threat is an external situation that opposes the company’s development. With these aspects addressed, let’s scrutinize Lego’s weaknesses:

Pricing: The downside of all the licensing deals is that Lego passes the licensing cost on to the customer. This makes Lego’s interlocking bricks much more expensive than generic toys of the same kind. So, price-conscious buyers may ditch Lego in favor of cheaper brands.
Video Games: Bandai Namco’s video game catalogue is almost 4 times larger than Lego’s video game catalogue. To stay competitive in the market, Lego must strengthen its video game offerings.
Kids TV: Recently, Hasbro acquired the entertainment network eOne. Through this move, Hasbro looks to popularize its products through channels in the network meant for kids. At the same time, Hasbro also wants to use popular franchises under eOne’s umbrella to boost sales.
Lego Clones: Lego has been unsuccessful in stopping Lego clones from biting into its share. Most of Lego’s business revolves around a patent that expired in the late 1980s. Since the patent expired many companies jumped on the chance to imitate Lego’s success. So far, Lego has not succeeded in suing these companies.
Protecting IPR: Lego’s products are vulnerable to copycats. Although the knock-off products are far inferior in quality, these counterfeit products are cheap. Lego has not been able to put measures in place to stop competitors from copying its products. Lego has also not succeeded in establishing and enforcing legal protections for its products.

What are some opportunities for Lego?

The biggest advantages Lego has over its competitors include its global reach, innovative products, and licensing deals. However, Lego has far from exhausted all its avenues of growth. In this section, you will see some areas Lego can venture into to solidify its position in the toy industry.

New Geographies: Lego’s annual report for 2019 shares that by 2032, 90% of the 2 billion children in the world would be living outside Europe and North America. What’s more, three quarters of these children would be living in Eastern Asia. This makes spreading to these regions a priority for Lego.
Virtual Reality: Currently Lego has a few augmented reality games. The games require children to view toys through Lego’s augmented reality app to trigger interactions. However, these games are far from virtual reality games that enable greater immersion.
Subscription Business Model: Lego can try a subscription box service like Loot Crate. Lego could send boxes to subscribers every month and leverage the Lego Ideas platform to build engagements and interactions around the month’s crate.
Personalization: Lego’s interlocking bricks already provide a mindboggling array of creative expression. But what if children had the choice to personalize their Legos? The Warhammer franchise has built a great business and fandom around personalization. Perhaps, Lego could borrow a few good ideas.
Education and Learning: Through its initiatives Lego Education and Lego Foundation, Lego is pursuing a vision to foster learning through playing. This initiative is in line with Lego’s vision to inspire and develop the builders of tomorrow.

What are the biggest threats to Lego?

Lego’s biggest competitors are Bandai Namco, Hasbro, and Mattel. While Lego has its winning product – interlocking bricks, its competitors have a few tricks up their sleeves. At the same time, elements outside the toy industry are throwing Lego off its game. So, let’s investigate what are some of Lego’s threats.

Copycat Products: Lego’s copycats do not just copy Lego’s toys; they also use Lego’s branding to drive sales. For instance, companies promote toys stating that they are “compatible with Lego.” These copycats will severely undercut Lego’s growth, especially in emerging economies.
COVID-19 Restrictions: Lego has been a big believer in letting children experience the joy of playing with Legos. It promotes this vision through its 570 retail branded stores. However, due to the COVID-19 restrictions, foot traffic to these stores is slow.
Environmental Groups: The principal raw material Lego uses is plastic. And the raw material for manufacturing plastic is crude oil. The direct reliance on petroleum has put Lego at odds with environmental groups such as Greenpeace.
Online Games: With mobiles becoming increasingly ever-present, children are increasingly moving to mobile games. This exodus from traditional toys to mobile games could threaten the demand for toys.
Competition: The top players in the market are running the race neck and neck. One runaway success could topple the leaderboard. So, Lego must consistently out-innovate, produce, market, and sell its competitors.

Lego SWOT Analysis: Conclusion

On one hand, Lego’s biggest weakness is to protect its intellectual property rights. On the other hand, Lego’s greatest strength is its innovation, high-quality, and licensing deals.

Looking ahead, Lego has many opportunities to explore. Entering new geographies is the biggest of these opportunities. At the same time, the chief threats to Lego come from copycat products.

Considering the stiff competition in the toy industry, Lego as well as its competitors are trying to capture the attention, interest, and patronage of children. Each company has laid out its own strategy. And for now, Lego remains competitive.

If you liked this SWOT analysis, you would like other SWOT analysis examples we created. And if you want to do your own SWOT analysis, you can check our articles on what is SWOT analysis and our SWOT analysis templates.

SWOT analysis of Lego analyses the brand by its strengths, weaknesses, opportunities & threats. In Lego SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Lego to benchmark its business & performance as compared to the competitors. Lego is one of the leading brands in the media & entertainment sector.

The table below lists the Lego SWOT (Strengths, Weaknesses, Opportunities, Threats), top Lego competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).

The Lego Group

Toy Brands and Manufacturers

Its what you make it

Construction toys for children

Construction and building block toys for children

Ages 3-15 of middle and upper class

It can be made into anything possible

Below are the Strengths in the SWOT Analysis of Lego:

1. Lego incorporates educational features to develop key skills in young children

2. Lego has a strong brand name across the world in over 50 countries

3. The company has a wide range of toys which are multi colored interlocking blocks made of plastic

4. The company uses high quality products to ensure the safety of the children who use these toys

5. Lego encourages goal oriented play and problem solving among little kids which enhances their brain activity

6. Legoland theme parks are extremely popular tourist destinations and offer a variety of rides and entertainment

7. The brand has also diversified into video games, TV and movies, merchandise etc.

8. Lego has a top of the mind brand recall owing to TVCs and extensive advertising via online channels, social media etc.

9. The company has a strong legacy since it was formed in 1949

10. The brand has also opened more than 100 stores across 20 countries

Here are the weaknesses in the Lego SWOT Analysis:

1. Imitation of products and brand name is a concern for Lego

2. Intense competition means high brand switching and also loss of market share to online games

Following are the Opportunities in Lego SWOT Analysis:

1. Organize competitions in schools for children so that kids have a strong affinity towards the game

2. The company can diversify into other segments so that the brand can continue to grow

3. More branding exercises to reach out to newer segments is an exercise which Lego can use to grow

The threats in the SWOT Analysis of Lego are as mentioned:

1. Changing preferences of children and their parents towards physical toys as compared to online learning tools

2. Increasing competition can impact the business operations of Lego

3. Fluctuating currencies can affect the business of the brand globally

Below are the top 7 competitors of Lego:

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Lego SWOT Analysis: Lego Group is a Danish firm that produces toys. The company’s most popular product “Lego” includes interlocking plastic blocks which can be used in a variety of ways to facilitate the improvement of a child’s motor abilities. Lego is a market leader in its field.

This article will take a look into Lego’s SWOT assessment of Lego’s brand. Before we dive into the in-depth study of Lego’s SWOT take a look at the brief highlights of the company in the following.

Company Overview

Name	The Lego Group
Website	https://www.lego.com/en-us
Founders	Ole Kirk Christiansen
Chief Executive Officer (C.E.O.)	Niels B. Christiansen
Tagline	only the best is good enough
Headquarters	Billund, Denmark
Type of Corporation	Private Aktieselskab
Year Founded	10 August 1932
Revenues (2020)	$7.54 B
Key Products/Services	Toys
Key Competitors	Bandai Namco, Mattel, Hasbro, and Gibsons

Company Overview:

Over the past eighteen years, Lego has been a tool in families where parents and children use the bricks that can be stacked to unleash their creativity and ideas. Lego is an owned and operated family company established around 1932.

It was founded by Ole Kirk Kristiansen, who was a carpenter. He had the idea of combining two Danish terms ” leg godt” meaning “play well” and “leg godt,” meaning “play well”.

Nowadays, it’s one of the biggest toymakers. Lego achieved solid growth in the year 2020, possibly due to the lockdowns triggered by the pandemic in the world, that forced everyone to stay home.

Lego revealed that more kids and even their own fans had fun with Lego as evidenced by their rapid growth in consumer sales, revenue, and operating profits. Their revenue increased by 13% to $7 billion, while operating profits rose 19% to reach $2 billion.

In the first quarter of the year, 2021 Lego’s revenues were up 43% year-on one year to $3.6 billion, and profits were $1.75 billion.

Strengths In The SWOT Analysis Of Lego

The term “strengths” refers to what a business can do best in all its operations that can give its business an edge over its rivals. These can be the advantages of Lego:

❤️ A toy that is different: Lego is a set of bricks that are susceptible to a range of combinations and permutations. It is believed that the set of six eight-stud Lego bricks could be used to make 915 various combinations.

❤️ A type of creative expression: Lego is more than simply a toy. It is considered to be an art of expression and studies show that children who play regularly with Lego toys are more adept at gross and fine motor abilities.

❤️ Many options: The variety of options that can be created with the set of Lego blocks is often more than only an entertaining game but also a challenge for users. This is why these options can be addictive.

❤️ The Tieto tie-ins with the film series: Lego has been associated with Harry Potter and there’s also been an animated film titled Lego which has managed to draw the interest of the main audience. of the audience, which is children.

❤️ Multiple themes: Lego Toys has multiple themes and licenses and while it is churning out incredible and exciting imaginative experiences for children, it also brings lots of reviving experiences for the adults.

❤️ Attention to particulars: Lego Toys has always been a favorite for its care for the smallest of details. The inherent design of every block guarantees a perfect fitting and that is the main selling point for the product.

Weaknesses In The SWOT Analysis Of Lego

The term “weakness” is often used to describe areas in which the company, as well as the branding, requires improvements. One of the major weak points that Lego has Lego is:

❤️ Costly: Lego toys are extremely expensive and thought to be out of reach for the majority of people living in the middle and lower rungs of society. This is why the toy is appreciated by a small segment of the population.

❤️ The costs of conducting research The main selling point for Lego is the age-appropriate toys, where every new concept is customized to fit the specific age group for which it’s meant to be used. The company strives to never duplicate its designs, which means that research is crucial and it raises the cost of research.

❤️ Cost of the material: Lego is made of ABS plastic that is specially made to fit Lego bricks. It is high-quality plastic, and it is costly.

❤️ Taste of the customer: Though Lego positions itself as a toy suitable for kids of all ages, However, not all children develop an appreciation for the toy. So, very few children know how to play with Lego and also enjoy using it.

Opportunities In The SWOT Analysis Of Lego

❤️ A greater focus of parents on toys that are creative as families become more nuclear, and the emphasis of parents is improving the skills of their children. This is causing them to spend money on toys such as Lego which have been proven to aid in motor abilities as well as brain development as well.

❤️ An increase in activity-driven education: Schools today focus on active learning, which makes students look for interesting toys that are able to teach students the basic concepts. This has led to several schools deciding to invest in educational tools. This presents the perfect chance for toy manufacturers.

Threats In The SWOT Analysis Of Lego

❤️ The risk of substitute: Lego is an extremely expensive choice and might not be accessible to the majority of income brackets. Therefore, they look at other alternatives, such as cheaper building blocks or other brain-building toys.

❤️ Contrabands Nowadays, there are many counterfeits of Lego available, made of less expensive plastic. Because there isn’t a huge danger in using counterfeits, they could be used over the original, which could affect the demand for Lego.

Limitations of SWOT Analysis for Lego

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is extensively used to plan strategic strategies However, the analysis has some limitations.

Certain abilities or aspects of an organization could be both strengths and weak points at the same. This is among the main drawbacks that SWOT analysis has. Changes in environmental regulations can be an opportunity and a threat to the company. However, however it could also be an opportunity in the sense that it allows companies to compete in a position to compete with their competitors or even gain an advantage over competitors when it could develop its product more quickly than their competitors.
SWOT is not a method of determining how to get a competitive edge and therefore it shouldn’t be a complete solution.
The matrix serves as an initial point of reference for an analysis of how the proposed strategies can be implemented. It offered an evaluation window, but no implementation plan that is based on the strategic competitiveness of Lego
The SWOT model is a static analysis that analyzes the existing conditions and a small number of potential modifications. When circumstances, capabilities as well as threats, and strategies alter, the dynamic of the competitive landscape cannot be analyzed in one matrix.
SWOT analysis could cause a company to focus too much on one external or internal element in formulating strategies. There are interrelations between the most important external and internal elements that SWOT doesn’t reveal, which can be vital in formulating strategies.

The SWOT analysis of Lego is weighted and weighted.

Given the previously stated shortcomings of the SWOT analysis/ matrix, the corporate management has decided to assign the weightage to every weakness and strength of the business.

Companies also evaluate the probability of future events happening in the near future, and what the effect can be on a firm’s performance.

This method is known as a weighted SWOT analysis. It’s better than a simple SWOT analysis since, With weighted SWOT Analysis Lego, managers can concentrate on the most crucial aspects and eliminate the less important ones.

This also helps solve the problem of a long list which is when organizations make lengthy lists but not addressing any is considered to be crucial.

References / Citations & Bibliography

M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
R. E. White, Generic Business Strategies, Organizational Context and

What are the disadvantages of LEGO?

Legos are made of 100 percent plastic, which has been found to be a source of dangerous chemicals. Furthermore, when toys made of plastic break, they break up into smaller and potentially dangerous pieces. Because they are made of plastic, Legos create more impact on the earth during their production as compared to wooden toys.

What is the unique selling point of LEGO?

The item has an additional selling feature. The toy brand LEGO intends to bring to life the imagination of children and allow it to make a mark in the marketplace of toys, cars computers, and other games. The company promotes it as a ” system of play” and could be a powerful selling point in trying to compete against educational toys.

What is Lego business strategy?

The LEGO Group will continue to increase its strategic investment in new product development and manufacturing capacity, retail channels, and digitalization to boost year-over-year or long-term development.

What is Lego’s competitive advantage?

Their main competitive advantage is their ease in their construction. It’s simple, flexible, and durable. The other companies are a bit restricted in what they can make. With LEGO creativity is the only limit.

How is Lego innovative?

This is something that Lego has pioneered for a long time and is the foundation of its design-thinking.” Gram calls the plastic Lego brick a platform similar to the operating system of a computer is. The possibilities that the company is imagining will be based on what’s possible with the bricks. Today, they’re the robotics industry, IoT, and AI.

Conclusion

On the other side, the biggest weakness of Lego is in the protection of its intellectual property rights. However, Lego’s strength lies in its ingenuity, high-quality product licensing agreements, and high-quality.

In the future, Lego has many opportunities to explore. Expanding into new territories is among the largest opportunities. But, at the same time, the biggest dangers to Lego are imitation products.

With the fierce competition in the toy market, Lego as well as its competitors are attempting to attract the attention, enthusiasm, and love of children.

Each business has come up with its own plan of action. At present, Lego remains competitive.

If you like the SWOT analysis, you might want to check out other SWOT analysis examples that we’ve created.

If you’d like to create the SWOT analysis of your own you can read our posts on the SWOT analysis as well as the template for SWOT analysis.

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