The Lego Company Case Study Example | Topics and Well Written Essays - 1000 words

The Lego Company - Case Study Example The Lego Company was founded by Ole Kirk Christiansen in 1932. The firm has a wide range of product lines including video games, board games, education items, Lego mindstorms, pre-school products, bricks, and play themes. In addition, Lego group offers numerous community-based and other services for the benefit of children, particularly disadvantaged children. In the United States, the organization mainly focuses on Lego Imagination Centers, which are large stores that contain displays of Lego sculptures and a bricks play area; and as of 2002 data, the Lego Group operates 68 stores (including stores soon to be operated) in the North America (Lego stores, n. d.). Lego uses strategic risk management approach to drive its growth; and its strategic planning model has assisted the company to be successful throughout its corporate history. Mission Statement & Vision Statement The firm’s mission and vision values greatly benefit the organization in achieving its desired and end state . Lego’s mission statement is to â€Å"inspire and develop the builders of tomorrow†, and its vision statement is â€Å"inventing the future play† (A Case Study of the Lego Group, n. d.). ... Since these values contribute to Lego’s market reputation, the firm may easily achieve its desired and end state. Internal Analysis & External Analysis Evidently, Lego has a range of competitive internal strengths such as global presence, long market experience, a globally recognized brand, famous Lego bricks, and numerous popular video games to accomplish its goals and objectives set in their previous strategic plans. Market trends indicate that demand for colorful bricks is likely to remain stable over the next decades. In addition, emerging markets like Brazil, India, and China would contribute to the Lego’s efforts for meeting its strategic goals. Finally, the steadily growing toy industry would also improve Lego’s ability to respond to various internal and external challenges quickly and effectively. Long Term Objectives Brand value creation is one of the major long term objectives of the Lego Group. The company also gives particular emphasis to global expan sion and market share growth in the long term. As Jenson (2012) points out, zero waste is the ultimate long term goal of the company. Strategy Analysis and Choice It is recommendable for Lego to choose cost leadership strategy to achieve and maintain competitive advantages over its market rivals. Currently, the company has spread across the globe and it has numerous potential capital sources to invest significantly in production assets. The organization possesses better product designing capabilities and high level expertise in manufacturing process engineering. In addition, Lego maintains efficient distribution channels. Furthermore, this generic strategy is beneficial for the organization to defend new entrants effectively. Similarly, the market development grand strategy is best for the