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Case Study: Leo Toy Of The Century?

1106 Words5 Pages

Lego was initially started as a family business in 1932 where wooden toys were made. One of their main missions is to create high quality building blocks toys for kids. Due to their consistency of quality and profitability, Lego was later on labeled as the ‘Toy of the century’ by Fortune magazine.
Lego Company need strong and large distribution network required to reduce a lot of money need to pay, beside that high capital and brand name of Lego also important to competitive in the market, advanced technologies and geographic factor are 2 keys element to successful in global market
The pressure will very high in threat of substitutes because of a lower quality product are increased very much. In addition development of many toys company, this act makes market more complex. However, Level of rivalry of Lego very high. Company occupies a strong position in the large Toy industries with strong brand loyalty and brand name among customers.

Lego relies on production of high quality toys that support innovative playing while kids learn through their fantasy and imagination. Sales of Lego flourished rapidly in the twentieth century. The major cause of downfall for its toys was the awareness of new technology related games and electronic entertainment. Their annual sales were getting affected due to change in preferences by the kids. To cope up with this alarming situation, they began to diversify their product line. The administration and owners were hopeful that with increased

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