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Recommended: Lego case study strategy development

Introduction
One of the most widespread companies across the world is The LEGO Group. This company is involved in the manufacture of toys. It provides teaching materials, experiences and toys for children in at least 130 countries (LEGO 2014). Just like any other company, for there to be success, there is need for an effective strategy in the LEGO Group. Overcoming any strategic challenges is key to building the pillar of success for any business. There are key strategic issues facing the LEGO group. These include competition from other firms dealing in similar products, achieving sustainable growth, expansion into new markets and development of new products.
LEGO’s competitors include Coco, Tyco toys and Mega blocs. Products manufactured by LEGO’s competitors can act as a substitute for LEGO products. One such product is the bricks produced by these companies. For instance Mega bloc’s bricks can be used in a similar manner to LEGO’s bricks. As a result, LEGO does not have a complete hold on market share. This is one of the most derailing factors in as far as market competition. The group is therefore tasked with looking into ways through which this can be overcome in a cost effective manner.
Development of new products is another strategic issue for LEGO. Introduction of new products is important to a company’s growth (Perkins 2009). New products not only create a variety for customers but are also indicative of the ability that the company has in satisfying customer’s needs. A company such as LEGO relies on new products in driving its sales. Every year 60% of LEGO’s sales are comprised of new products hence indicating the need for perpetual production of new products (LEGO 2012). Apart from this, sustainable growth has proved t...

... middle of paper ...

...g to the market standards and at the same time ensuring there are no losses. By focusing on recycling and alternative materials, LEGO can minimize production costs and at the same time address the environmental issue that has been identified above as a threat to its prosperity. This can later translate into customers’ benefits through reduced prices.
In conclusion, there are a number of strategic issues that LEGO faces in as far as meeting its objectives is concerned. As it has been seen above both PESTEL and Porter’s five force analyses are insightful in shedding more light on the strategic options available to LEGO and how best LEGO can make use of them in order to succeed. PESTEL and SWOT Hhave been used to analyze how LEGO has performed. These options are vital in ensuring that LEGO is able to address some of its strategic issues which need immediate attention.

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