Marketing Strategy Assignment with LEGO (GC01698)

Executive Summary

LEGO is the well-established toy industry in the world. This assignment is divided into seven key parts. Firstly, this assignment is analyzed the situation analysis of LEGO. Porter’s Value Chain analysis model is used for the internal situation analysis and PESTLE analysis is used for external situation analysis. Secondly, this assignment is analyzed the climate analysis of LEGO. Thirdly, this assignment is analyzed LEGO’s competitor analysis. Fourthly, this assignment is analyzed the customer analysis of LEGO. Fifthly, this assignment is analyzed the market segmentation of LEGO Group. Sixthly, this assignment is analyzed LEGO’s company analysis. As a result, SWOT, TWOS and Ansoff Matrix models are used to do the company analysis. Seventhly, this assignment is analyzed the collaborator analysis of LEGO. Finally, several recommendations are provided to LEGO Group for its future activities.

 

Table of Contents

1.0      Introduction.

2.0      Situation Analysis (Internal/external)

Porter’s Value Chain Analysis of LEGO Group.

PESTLE analysis of LEGO Group.

3.0      Climate Analysis.

4.0      Competitor Analysis.

5.0      Customer Analysis.

6.0      Market segmentation.

7.0      Company Analysis.

SWOT Analysis of LEGO Group.

Ansoff Matrix analysis of LEGO Group.

9.0      Recommended strategies for future activities.

10. Conclusion.

References.

Appendix.

 

1.0   Introduction

According to Cohen (2015), marketing is the science of creating, delivering as well as exploring the value to fulfill the target market’s needs at a profit.  Kotler and Armstrong (2017) stated that marketing mainly recognizes unfulfilled needs. In addition, it also measures, quantifies and defines the size of the identified marketplace. The chosen organization for this assignment is the LEGO Group. LEGO is the well-established toy industry in the world (LEGO, 2018). This assignment is divided into seven key parts. Firstly, this assignment is analyzed the situation analysis of LEGO. Porter’s Value Chain analysis model is used for the internal situation analysis and PESTLE analysis is used for external situation analysis. Secondly, this assignment is analyzed the climate analysis of LEGO. Thirdly, this assignment is analyzed LEGO’s competitor analysis. Fourthly, this assignment is analyzed the customer analysis of LEGO. Fifthly, this assignment is analyzed the market segmentation of LEGO Group. Sixthly, this assignment is analyzed LEGO’s company analysis. As a result, SWOT, TWOS and Ansoff Matrix models are used to do the company analysis. Seventhly, this assignment is analyzed the collaborator analysis of LEGO. Finally, several recommendations are provided to LEGO Group for its future activities.

2.0   Situation Analysis (Internal/external)

This section is analyzed the situation analysis of LEGO Group. To analyze the internal situation analysis of LEGO Porter’s Value Chain analysis model is used. In addition, to analyze the external situation analysis of the LEGO PESTLE model is used.

Porter’s Value Chain Analysis of LEGO Group

As Reese and Gerwin (2016) note, value chain analysis or VCA is the process in that a business organization recognizes its both primary and support activities that add value to the final products as well as analyze the activities to increase differentiation and minimize products’ costs. Value chain analysis is very significant to identify the internal activities of a firm (Schmitz, 2016).  The value chain analysis includes two activities including primary activities and supports activities. The primary activities consist of inbound logistics, operations, outbound logistics, marketing & sales and services. In addition, the support activities consist of procurement, human resource management, technological development and infrastructure.

 

LEGO’s value chain analysis is given as follows:

Primary activities

Inbound logistics

LEGO gather more knowledge to develop its technology in production and make new materials including non-poisonous plastics that its competitors could not reproduce. According to Yurevich (2015), this new material helps LEGO to increase its profitability and market share. In addition, it is very significant for LEGO to make greater value for its products by remaining and protecting its brand power.

Operation

According to Jensen (2018), Jorgen, CEO of LEGO has established a strong product development team in this organization. LEGO has created an open innovation process that helps to analyze the habits and expectations of customers over the world. Ideas of the customers support LEGO to identify innovations and developments of products. In addition, it makes good relationships with its retailers. LEGO has become more famous in the world and this supports creating a great position in the international market (LEGO, 2018).

Outbound logistics

Medsen et al. (2015) said that LEGO decided to outsource production to minimize cost. As a result, it developed its supply chain. LEGO makes good relationships with its suppliers to develop innovation capability and develop market feedback.

Marketing and sales

CEO of LEGO named Jorgen develops several retail channels to increase its sale and market share (Jensen, 2018). Products of LEGO Group attract more retailers including Walmart and increase its bargaining power. In addition, LEGO makes good relationships with the retailers to enhance the flexibility of sales.

Support activities

Technology Development

According to Jensen (2018), online development and innovation help LEGO to inter into the digital circumstance including online multi-player games. LEGO develops diverse products in its business that attract and satisfy all types of people. This also helps this organization to make the customers more loyal and increase sales.

Firm infrastructure

LEGO has its own business style. It develops a capital structure in its business to reduce the debt burden. LEGO separated its LEGOLAND in its crisis year to reduce the debt burden (Jensen, 2018). This organization also focuses on its traditional business that helps to improve profitability and increase growth in its business.

PESTLE analysis of LEGO Group

Robertson (2015) disclosed that PESTEL analysis is the strategic framework or a tool that is applied to analyze or monitor a business organization’s macro-environmental factors which may have a great impact on the performance of that business organization. PESTLE stands for political, economic, social, technological, legal and environmental factors.  In addition, PESTLE analysis gives the vast study of external factors which pose challenges to the marketing strategy of a business organization (Perera, 2017)………….

 

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