Lego has been in the lives of children for many years making it one of the top companies in the market. However, Legos has had its negative streaks and has had to build its self and go back to its roots. By using PESTEL framework, Porter’s 5 Forces and SWOT analysis we are able to have a better idea of the factors that are being considered by Legos in their business.
Lego’s political environment and legal environment plays a role on its business because they must take into considerations the laws and regulations in the countries they choose to have their products. They are slowly increasing its globalization status. They have opened stores in Europe, Asia and North America. The European Union has their Toy Safety Directive rules that state the safety of all toys physically and chemically that are being sold. Lego must make sure their products are up to date in regards with the EU …show more content…
Lego’s threat of substitutes goes back to the increase in technology usage of younger kids. As I had mentioned before technology is a big part of the world for not only adults but for the younger children as well. Lego however has been able to keep up and incorporate technology in their products, this has helped them increase their sales. The likelihood of new entrants is low because the product is easy to copy and there aren’t many market barriers for new entries.
Using the SWOT analysis we can convey Lego’s strengths, weakness, opportunities, and threats.
Opportunities Threats
Strengths Lego has been in the market for a long time.
They are well established. Many have grown up with Legos creating an emotional appeal. Focusing on the core values of the company.
Incorporating new technology to their products.
Weaknesses Children mainly use them early in their childhood. Losing identity
Easily
Lego’s political environment and legal environment plays a role on its business because they must take into considerations the laws and regulations in the countries they choose to have their products. They are slowly increasing its globalization status. They have opened stores in Europe, Asia and North America. The European Union has their Toy Safety Directive rules that state the safety of all toys physically and chemically that are being sold. Lego must make sure their products are up to date in regards with the EU …show more content…
Lego’s threat of substitutes goes back to the increase in technology usage of younger kids. As I had mentioned before technology is a big part of the world for not only adults but for the younger children as well. Lego however has been able to keep up and incorporate technology in their products, this has helped them increase their sales. The likelihood of new entrants is low because the product is easy to copy and there aren’t many market barriers for new entries.
Using the SWOT analysis we can convey Lego’s strengths, weakness, opportunities, and threats.
Opportunities Threats
Strengths Lego has been in the market for a long time.
They are well established. Many have grown up with Legos creating an emotional appeal. Focusing on the core values of the company.
Incorporating new technology to their products.
Weaknesses Children mainly use them early in their childhood. Losing identity
Easily