LEGO

LEGO Company Industry analysis is a perfect criterion for evaluating LEGO’s product lines and business operations involves looking at the markets, competitors, and skills that the business operations require to maintain and sustain its dominance in the market (Ivey 10). Strategic evaluation is also a suitable evaluation criterion that involves using tools to identify both internal and external factors that influence the business’s strategies. There have been tremendous changes in the toy industry with an increase in the control of licensing agreements, limited trademark protection, and eminent competition from existing and new industry players. The changes imply that industry players like LEGO must improve and expand their product lines. On the other hand, the changes suggest that industry players must formulate strategies for maintaining their market dominance. The changes are leading to healthy competition indicating that the toy industry is set to grow to greater heights in the future.

Amidst the tremendous success, LEGO has had to deal with various internal issues that affect its competitiveness. For instance, internal operations of the company had been under scrutiny for their inability to align the organization’s business objectives. The company has been facing some issues on how it manufactures and distributed its products. One problematic area is the company’s inability to consider production costs before estimating sales (Ivey 5). In this case, the company had been spending too much on materials that go into waste as the surplus is never used in the production process. In the past two years, there have been numerous threats to LEGO Company in the industry. For instance, mergers and acquisition are posing challenges to the company’s competitiveness where Walt Disney acquired Marvel Entertainment to improve its strategic market positioning. LEGO also faced trademark battles in the court and new entrances into the market like MEGA Brands and Hasbro who entered the market with better toy products is a negative implication for the firm’s competitiveness (Ivey 9).

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Work Cited

Ivey, Richard. THE LEGO GROUP: BUILDING STRATEGY. The University of Western Ontario: School of Business Foundation, 2011. Print.

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