The Lego Group - SWOT analysis and sustainable development strategies

Extract

[...] The revenue of the Lego Group has increased from 0.9 billion euros in 2003 to 5.87 billion last year. Although after 12 years of sales growth a small drop in turnover can be noticed. (The Danish group saw its activity decline in 2017 from 5.1 to 4.7 billion.) The graph showed that the performance of the company has increased greatly in the last 4 years. In addition to this, the company has sold more of its products to its customers and generate more money that enhances the growth of the Lego Group around the world. [...]

[...] Moreover, the price of products is not affordable for certain segments of the population. Lego toys are indeed expensive, made of high-quality plastic and expensive to produce, the average set price range is around $40 to $50. Not to mention toy themes that change very often, very quickly and are personalized based on the age of the target. It also increases the cost of production and therefore the product. This is a major drag in industrialized countries and even more so in countries with weak economies. [...]

[...] The Lego Group - SWOT analysis and sustainable development strategies In 1932, the Lego company was founded in Denmark after the carpenter Ole Kirk Christiansen lost his job and started building wooden toys in Billund. In the years that followed, Kirk Kristiansen's family transformed their small workshop, where they produced small wooden objects, into a large, successful company. The company's products are sold in over 130 countries with over 16,000 employees. The company and its subsidiaries operate in Europe, the Americas, Africa, Asia and Australia. [...]

[...] There is also the race for innovation. In the world of toys, it is vital to innovate, especially due to the change in mentalities. With digital and video games, children's affinities in the playful world are changing. Lego can be seen as going out of fashion, being neglected by youth and parents as buyers, so it faces an evolving customer base, changing generations. Not to mention the seasonality of the market, as Lego sees sales increase during the holiday season. [...]

[...] Today, the Lego(R) brick is no longer to present. For decades now, the small Lego bricks of this Danish company have been found in homes in France and all over the world. Lego has remained true to its values with the motto, which has never changed: `Only the best is good enough.' As ecological concerns become paramount among consumers, many promises have been made and Lego faces many challenges. The toy market is constantly evolving and just like the CEO of the Foundation Christiansen said: `Companies must act to create a lasting positive impact on the environment and on society. [...]