LEGO Analysis

Inside LEGO® – Brick by brick

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  • General aspect of the toy industry

o   Growth

o   Seasonality

o   Competitors

o   Technology complexity

o   Type of industry

o   Safety regulations

o   Future of the industry?

  • Baby Boomers vs. Generation X vs. Millennial Generation?
  • General information of the company

o   Location

o   History (wooden toys to plastic bricks)

  • Evolution of the firm

o   Pre-strategy change company situation

  • 3rd generation CEO family member
  • Company losing $1MM per year. Why? Too big?
  • Company lost focus of the business core
  • Too much diversification?
  • Too many products?

o   Post-strategy change company situation

  • First non-family member CEO
  • Company growing at 2-digits every year
  • Largest toy producer in the world
  • Mattel, Hasbro out of competition?
  • Re-focusing product lines
  • New hires forced to utilized few components (brick pieces) for new products


Topics to be included in the written report:

1)    Industry description, characteristics. Classify the toy industry in one of the 4 stages (introduction, growth, mature, decline) and explain.

2)    Firm description. Pre-strategy situation and explain the main problems.

3)    Describe and explain the applied strategy. Cost vs. Product differentiation, or both?

4)    Firm description after the applying new strategy. Explain solution to the problems.

5)    SWOT analysis for current situation of the firm.

  1. O-T considering the Porter’s 5 forces in the industry.
  2. S-W considering Resource-based view

6)    Future of the firm. What do you think it will happen to LEGO in 5-7 years from now?

7)    Any topic relevant to strengthen your arguments.


Written report format and requirements:

1)    Font and size: Times New Roman, 11 pt, single-spaced.

2)    Number of pages: Minimum: 3 pages, Most likely: 4 pages, Upper limit: your motivation.

3)    No cover pages or title pages. It will not count towards the page number requirements. No figures, graphs, or tables preferred (Those just use important space in any report). Use them if you really need them. They are not going to count towards the page limit.

4)    ABSOLUTELY no copy/paste from any source. Maximum similarity to other sources (plagiarism): 20%.

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