Lego Analysis

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Lego company analysis. SWOT and Ansoff’s matrix. Making the PEST analysis we mainly focus on four areas of interests, these are: politics, economy, Society and culture and technology. Looking on the profile of the LEGO Company, I assume that nowadays its development is mostly affected by technological factors. As far as there is constant development of the digital world, which offers a very attractive and relatively cheap play wold opportunities with supreme visual perception, making the LEGO concept more and more old fashioned. From the company reports we see that the age groups , determined as the main potential customers are getting narrower and narrower, by now these are the boys from 4-7.Ofcourse technology also gives a lot of advantages , making the production more efficient ,ecological and advanced. It allows optimising the costs for the labour, consumption of recourses and the rapid change of the linear products, allowing adapting fast to new coming trends. Second important factor is the economy. we all know that buying capacity of population is fully dependant on the well-being. The inflation, unemployment and GDP growth rates reflect the current state of any economy in the world and in plain words we can say: if people don’t have money they don’t buy. The recent worldwide economic crisis puts many of the economies under pressure. People are more concerned of satisfying their primary needs. LEGO toys are always positioned as a high quality and high durability toys and it means that they are not cheap. They lose price competition towards Chinese analogues, especially in the times when people prefer quantity before quality. Political factors are also having influences on the development of any businesses and LEGO is not an exception. Stable political situation gives a warranty and a sense of security of made investments and encourages any

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