The company was established in in 1932 by Ole Kirk Christiansen. The term “LEGO” is derived in the word “leg Godt” which is the Danish equivalent of “play with your friends”. The bricks that are different in size and shades are interlocked with designs that are made available and in patterns that are prescribed for building toys that can be taken apart and rebuilt a number of times. Today, LEGO offers toys for children starting at 4 years or more. Today, LEGO is the market top player in toys, with revenues of 2.1 billion, surpassing those of market leading Mattel that has close to 1.9 billion USD in sales.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by LEGO.
LEGO At A Glance – LEGO SWOT Analysis
Company: The LEGO Group
Founders: Ole Kirk Christiansen
Year of establishment: 10 August 1932, Billund, Denmark
CEO: Niels B. Christiansen
Headquarters: Billund, Denmark
Employees (Dec 2020): 17,431
Ticker Symbol: LEGO
Annual Revenue (Dec 2020): EURO€5.87 Billion
Profit net income (Dec 2020): EURO€1.33 Billion
Products & Services: LEGO-brand toys | Variously colored interlocking plastic bricks accompanying an array of gears | Figurines called minifigures | Various other parts
Company Website: www.LEGO.com
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LEGO SWOT Analysis – SWOT Analysis Of LEGO
SWOT Analysis Of LEGO analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With LEGO SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about LEGO SWOT Analysis. Below Is The Detailed SWOT Analysis Of LEGO.
LEGO Strengths – LEGO SWOT Analysis
1. Toys with a difference: LEGO is a set of bricks that are subject to a variety of combinations and permutations. It is believed that 6 eight-stud LEGO bricks could be used to make 915 various combinations.
2. A type of creative expression: LEGO is more than just a plaything. It is considered to be an expression of creativity and studies show that children who play regularly with LEGO toys are more adept at gross and fine motor abilities..
3. A variety of choices: The variety of options that can be created with the set of LEGO blocks is often more than only a game, but an obstacle for its players which is why these choices can be addictive.
4. Linkups with movie franchises: HTML0 has tie -ups with film series: LEGO has been associated with Harry Potter and there is also the film LEGO that has managed to grab an attention from the main intended group, which is the children.
5. Multiple themes: LEGO Toys has multiple themes and licenses and while it is churning out exciting and innovative fun experiences for kids, it’s also associated with many uplifting moments for parents too.
6. Attention to the smallest of details: LEGO Toys has always been well-known for their focus on particulars. The intricate detailing of every LEGO block ensures an exact fit , which is the distinctive selling point that makes the toys.
LEGO Weaknesses – LEGO SWOT Analysis
1. Costly: LEGO toys are extremely expensive and are thought to be out of reach for the majority of people living in the middle and lower rungs of society. This is why the toy is appreciated by a small segment of the population.
2. The high price of research: The unique selling point is that LEGO is the age-appropriate toys, where every new concept is tailored to the age category for which it’s designed for. The company is committed to never duplicate its designs, which means that the research component is essential and that can increase the research costs.
3. Cost of the material: LEGO is made of ABS plastic that is specially designed to hold LEGO bricks. It is a high-quality plastic and is priced on the high side.
4. Taste of the customer: Though LEGO positions itself as a toy suitable for children of all ages but not everyone gets an appreciation for the toy. So, very few children know how to play with LEGO and also enjoy using it.
LEGO Opportunities – LEGO SWOT Analysis
1. A greater focus of parents on the most imaginative toys: As families become multi-generational, the focus of parents is improving the skills of their children. This has led them to spend money on toys such as LEGO that are proven to help develop motor abilities as well as the brain development as well.
2. An increase in activity driven education: Schools today focus on the experiential learning process and make students look for interesting toys that teach student the basic concepts. This has led to numerous schools investing on educational tools. This presents the perfect chance for toy makers.
LEGO Threats – LEGO SWOT Analysis
1. The risk of substitute: LEGO is a extremely expensive choice and is not affordable for many income levels. Therefore, they look at other alternatives, such as cheaper building blocks or other brain-building toys.
2. Counterfeits: There are many counterfeits of LEGO available , made of less expensive plastic. There is no significant risk associated with using counterfeits, they can be preferred in place of the original that can affect the sales of LEGO.
LEGO SWOT Analysis Overview Template
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