Strategic Development and Analysis: A Lego Group Case Study

This case study examines the Lego Group's strategic management, focusing on its evolution from wooden toys to plastic bricks and theme-based products like LEGO Friends and Ninjago. It highlights the importance of competitive advantage, innovation, and responding to external factors such as customer demand and market competition. The study analyzes how the Lego Group adapted its strategies, including a new management style, to achieve growth and meet market challenges. It further explores the impact of external environment factors like competitors, customers, economic conditions, and political factors on the company's development strategy. The case study also reviews alternative strategies used by Lego in 2004, such as restructuring and financial strategies. Finally, it suggests strategies for future improvement, emphasizing the importance of resource management, employee motivation, and smart strategies to ensure continued success within the organization.

CASE STUDY OF LEGO GROUP

Table of Contents

1 Explanation about criteria reflects key characteristics of strategic management
In the 1932, Lego group have been established in the village of billund Denmark. Its
major product is childrens toys which developed with high quality of plastic bricks. Cited
venture have developed various parks through which it has developed its own effective brand
image in the market. In the 1998 Kjeld Christiansen wanted company's extreme growth and
progress but at initial stage, Lego have several competitors in the market but it has strong
possition in the market due to it high quality of product and services. Another major issue was
that today children are more demanding and they required the toys which used in the young age.
(Villagrasa and et.al., 2018). Thus, in order to compete with rival and meet the children demand
in the market, corporation considers on the effective and creative product at the time of
production and manufacturing and also use the theme such as lego friends, lego ninjago.
Furthermore, Lego transformed from making wooden toy to additional of tightly gripping piece
to their gadgets. At the same time a new and more decentralised management style was
introduced by company in order to design the new and innovative business strategy. The
mentioned strategy to develop the LEGO Ninjago and LEGO Friends and production is reflected
the key characteristics of strategic management. The main characteristic of strategic management
is competitive advantage as cited venture business strategy has reflected this feature of strategic
management (Nalepa, 2018). As Lego philosophy is to produce good quality of toys for child life
and lays the foundation for later adult life. To focus on the high quality and innovation is major
competitive advantage of the Lego. In the 1995, some ambitious objective were set such as
enhance sales by 100 to 200 percent, develop 3 to 4 legend parks should be build in different
countries.
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2 Explanation about the impact of external environment factors that influence development
strategy at the Lego group
As external environment consists with several factors such as customers, government,
economy, competition, public opinion etc. These all element has influenced the new strategy of
Lego group. As competitor is major element in this case of Legal. Lego have various competitors
such as Sony, visual arts, Nintendo etc (Parappilly, Hassam and Woodman, 2018). Business
strategy of all these companies have influence the new strategy of Lego. In addition to this,
customer is another element as children are more demanding regarding toys and they required
matured age children toys. Thus, it can be said that customer is major factor that affect Lego
business strategy. In the context of political factor, law and legislation in the south America,
Europe provided an assurance to the Lego in terms of market for its products. In addition to this,
economic factors such as inflation, GDP, unemployment has influenced the operation of Lego.
3 In the 2004, what alternative strategies used by Lego Group
Due to the challenges faced by Lego at the time of setting new direction, corporation
have shifted its requirement and modify at the top level. Company's CEO announced that the
family was strongly behind the welfare of the company (Bartneck and Moltchanova, 2018).
Kjeld have made efforts to develop LEGOLAND park in 2005 to 2009. In addition to this, he
developed the strategies for sales revenue. Furthermore, cited venture established a strong capital
structure and the main purpose of the business is to make strong financial position in the market.
4 Suggest the strategies for improve and develop the company in the future
In order to develop the success in the future of Lego group, I would understand the most
valuable and rare resources and save it's for the further improvement within the organisation. I
would effective utilise the available resources and design such smart strategy that would execute
for brick concept of Lego group. I would introduce such effective motivation strategy through
which I would effectively motivate its employees and improve quality of work.
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REFERENCES
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