This report offers a comprehensive strategic evaluation of the Lego Company, a leading producer of plastic toys. The analysis begins with an introduction to business strategy and its significance, followed by an examination of Lego's strategic statement. The main body of the report delves into the external environment using PESTLE and Porter's Five Forces models to assess political, economic, social, technological, environmental, and legal factors, as well as competitive forces. An internal environment analysis then utilizes Porter's Value Chain and VRIO model to evaluate Lego's internal capabilities, including inbound logistics, operations, outbound logistics, sales and marketing, and human resource management. The report concludes with an assessment of strategic fit, summarizing the key findings and insights into Lego's competitive advantages and strategic positioning within the toy industry. The report also highlights key success factors such as global presence, brand reputation, investment in capacity expansion, emphasis on quality and safety and strong financial position.