LEGO Group: Building Strategy
(10 pages of text)
2015; 2014; 2013
The world famous toymaker, The LEGO Group, assembled an internal management team to create a strategic report on LEGO’s different product lines and business operations. In recent years, numerous threats to LEGO had emerged in the toy industry. The acquisition of Marvel Entertainment by The Walt Disney Company created major implications for valuable toy license agreements. LEGO had also recently lost a long legal battle with major competitor MEGA Brands, makers of MEGA Bloks, with a European Union court decision that removed the LEGO brick trademark. Furthermore, the second-largest toymaker in the world, Hasbro, was preparing to launch a new rival product line called Kre-O. It was critical for the management team to identify where to expand LEGO’s product lines and business operations, in order to develop a competitive strategy to continue the organization’s recent years of financial success and dominance in the building toy market.
This case was written to place students directly into the role of a large organization that after years of market dominance is facing multiple new threats. As a member of LEGO’s internal management team, students must provide an analysis of the company’s different product lines and business operations. Students also need to consider the impact of changes in the marketplace on future business opportunities in the toy industry. The goal is for students to identify where LEGO should expand product lines and business operations in order to develop a strategy that will help the company continue market dominance and financial success. Possible areas of focus include:
- The challenges a company faces when developing a strategy.
- How a company with market dominance reacts to new emerging threats.
- The impact that mergers and acquisitions have on licensing agreements.
- How to recognize opportunity in the marketplace.
Denmark, Large, 2011
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