Strategic Analysis of Lego

4106 words 17 pages
| Strategic Analysis of the LEGO Group of LEGO Group | | |

Business Policy and corporate strategy

9th January 2012

Strategic Analysis of the LEGO Group

Discussion and evaluation of strategies adopted by Lego during 1995-2009
Strategies adopted by Lego 1995-2009
Strategies are processes businesses carry out, the directions they take and the decisions they make to reach their goals (Thompson & Martin, 2005). Strategic models such as the Ansoff matrix can be used to aid companies in choosing a suitable growth strategy. The Ansoff matrix proposes that a company’s growth strategy depends on whether it markets new or existing products in new or existing markets (Ansoff, 1957). The diagram of the Ansoff matrix below
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LEGO EVR analysis 2004-2009 * Environment - opportunities and threats * Expansion into emerging market – China, Mexico, India * Expansion into more online community gaming * Values – leadership and culture * Strong return from Kjeld to lead company * Wanting to enter foreign markets, China, Mexico * Resources – strengths and weaknesses * Strong brand loyalty * Record sales profits * Strong connection with end users * Strong presence in educational market
From this EVR congruence analysis it can be concluded that LEGO was at congruent stage from 2005-2009. Their values were intone with their current environment and they had the required resources to reach their strategic goals.

Explanation the environmental factors impacting on LEGO during 1995-2009

Kotler (1998) argues that a PEST analysis is a useful tool in many ways including working out a business’s position, its market growth rate and what direction its operations should be heading in. This report will use a PEST analysis to identify what environmental factors affected LEGO from 1995-2009.
Political/Legal factors
Compliance with different US safety and quality laws – With the aggressive expansion into US markets, LEGO would have to comply with new product safety laws being introduced in the US such as the Consumer Product Safety Improvement Act (2008). LEGO has implemented these safety


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