The Lego Group: Building Strategy Problem Statement: The Lego Group has been reservation toys successfully for 80 years and has grown to having close to 3.16 B USD in sales for the 2010 year. They specialize in toy structure sets, a sector of the securities industry that has seen 13% harvest in 2010 and is forecasted to grow further. However, the Lego Group is at a cross-road in their short letter plan and requires a strategic plan going forward. Currently, the confederation needs to look at its existing partnerships with Disney after Disneys significant mergers and acquisitions in the past year. Lego is regarding Disneys purchase of Hasbro and Mattel as a threat to their market share of the toy construction block sets due to potentially losing kids who want to buy themed sets establish on Marvel comics. Meanwhile, the Lego Group is straying from its core cogency and is developing video games. Furthermore, the Lego Group is not retaining a mass of its cash flows and therefore is not following a unified structure designed for growth. Strengths & Weaknesses of The Lego Group, Market Opportunities and Threats Strengths: Lego Group Incredible betray equity (quality, history, loyal following) and called toy of the century.
Lego has global growth potential Recent (2005) overhaul of supply chain has increased expertness and resulted in a huge cost savings. Lego is leaner and moneymaking Major market share at 9:1 vs. their closest competitor, Mega Bloks indicates leadership in the toy building sets market (Lego 3.16 B vs. Mega Bloks at 0.368 B in2010 note: conversion grammatical constituent 1 DKK = 0.1925001925 USD) Weaknesses: Lego Group Dividends of DKK 1,500 million were paid in May 2010, synonymous to DKK 7.3 million in average per share. Expected dividend for 2011 is DKK 2,500 million. Lego is paying the Kristiansen family in addition much money. Had slipped into financial trouble early in the 2000 decade and was not aware of costing and expenditures. Core... If you want to get a full essay, order it on our website: Orderessay
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