Evgenii, Roelof & Sjoerd

TEN slides - TEN models1. PESTLE 2. Porters five forces 3. Market life cycle4. Value chain5. Core problem

6. Confrontation matrix7. Canvas model8. Canvas model +59. International strategy10. Ansoff's model

Mission, Vision & Brand ValuesMission: ‘Invent the future of PLAY’

Vision: ‘Inspire and develop the builders of TOMORROW’

Values: • Imagination • Creativity• Quality• Learning• CARE!

Company History & Profile1932 – Started by Kirk Kristiansen – “Only the best is good enough”

1958 – Plastic cubes were introduced – “There’s one word I can say - ‘plastics’

1966 – Lego train toy – “Who said you can’t have a train in your house?’

1968 – Legoland Park in Billund – “Now you can be LEGO too”

1988 – Lego World Cup – “Show the world how good you are”

1997 – Lego Video Game – “You won’t lose your bricks anymore

2012 – Four billion minifigures produced – “Now we are the world’s biggest

population group”

PEST analysisPolitical

• Adverse geopolitical representation

• Gender neutrality

• Corporate tax games

• Labor politics

Economic

• Currency fluctuations

• Positive economic downturn

• Advanced Economies Growth

Social Technological

• OECD Fertility Rates

• Targeting China and India

• Renewable Energy & Zero Waste Prog-s

• Three Dimensional Printing

• Virtual Platform Development

• Tablet & Mobile Market

Five Forces AnalysisThreat of new entrants – moderate (patents, oil prices) Threat of substitutes – high (simplicity, design, China)Bargaining power of customers – high (B2B, retailers control)Bargaining power of suppliers – high (Oil, Chem&film mkt, CoC)Intensity of rivalry – low (distribution channels, online sales)Complementors – moderate (Mega Blocks, Mattel, Oxford Toys)

Market Life Cycle

Value chain Model

LEGO has only 1 product,

which is easy to copy.

Core problem

Strenghts – iconic brand, product portfolio, experience

Weaknesses – size, easy to copy , only variations on one theme

Opportunities – NEM (Asia), complex logistics, complementors

Threats – trends, competition, lack of legal protection

SWOT analysis

Confrontation matrixSWOT Asia Logistics Partners Trends Legal Competition

Brand ++ o ++ ++ - +

Portfolio ++ ++ ++ + -- o

Experience ++ ++ o ++ o +

Size + o + -- + +

Copy -- o - o -- --

Theme o o + -- o --

C Ma o n dv ea ls

DisneyWarnerEASonyParamountSchools

LegoDuploFriendsLegolandGamesVideoMovieEducation

ChildrenAdults

Families that are themepark visitors

Children in schools

ProducingPromotingR&D

HRInspirationBrands

StoresLegolandSchools

CSRPick-a-brickDesign

Production R&DPromotion Legoland & stores

Purchases AdvertisingTickets Partnerships

C Ma o n dv ea lS +5

Great wall film company

Annapurna studios

School system

IKEA

Lego

Great Wall

Bollywood

Furniture

Art

Education

ChildrenAdults

Families that are themepark visitors

Children in schools

ProducingPromotingR&D

HRInspirationBrands

StoresLegolandSchools

Popular movies/characters

Production R&DPromotion Legoland & stores

Purchases AdvertisingTickets Partnerships

International strategy

HIGH

LOW

GeographicallyDispersed

GeographicallyConcentrated

Configuration ofActivities

Coordination ofActivities LEGO

Oxford Toys

Mattel

Ansoff’s strategic diagnosis model

…

Strategic recommendations• Invest in emerging markets (China, India, Mexico)

• Increase market share in Eastern Europe

• Expand ‘direct to customer’ activities

• Increase Product Placement in Movies

• Find more complementors & make exclusive agreements

• Expand Lego Friends segment