Pest analysis of toy industry in uk

Hence for Lego as a toy maker brand it is important to come up with products that catch keen interest of its audiences and keep innovating itself with the trending interests of children.

political factors affecting toy industry

Besides, there are several threats concerning the economy. The company is pursuing the digitalization strategy as an enhancement to its core business - physical Lego play and make it more exciting and appealing by creating a hybrid physical-digital experience.

The industry I would like to dedicate is a narrow defined particular segment of design agency industry - not the normal agency companies that only taking orders and contracting, but specifically designer representation agency who help designers on branding and promoting.

This competitiveness has seen all toy companies jockeying for position and has over all lowered companies profit margins, as they compete with pricing with each other, using lower pricing strategies and offering exclusives and unique features to their customer base, at a cost to them.

LEGO and LEGO DUPLO elements undergo a series of rigorous physical and chemical tests such as bite test, impact test, drop test, color and substance migration, hazard migration, compression test and hazard classification.

The toy industry also relies heavy on the intellectual properties of any given toy business, which they may not be able to protect from countries with loose copyright laws and regulations. In fact, environmental analysis should be continuous and feed Maintaining political neutrality a core value of Lego 1.

Power of the Suppliers The materials used within the production of 1UpToys products, for example plastics, paper, cardboard, computer chips and cables, are available from a wide range of suppliersbut are susceptible to market related pricing, e.

Toy industry analysis

T, They are growing up more rapidly, as younger and younger children are taking up technological toys and spending vast time on the internet. The economic condition, liberalization, policy toward foreign investment, and growth rate of the economy as a whole also help to analyze the overall industry attractiveness and potential for the growth. It is very important that an organization considers its environment before beginning the marketing process. Just because of these reasons, parents having a high disposable income and also increasing the spending power towards their child. The official version now draws 90, players daily. This aggressive In recent years the market has been influenced by changing consumer tastes, with children opting for more sophisticated video games and electronic toys. A problem like this looms over every toy company that uses manufacturing plants in China. The radical and ongoing changes occurring You cannot imagine the amount of hard work and research that is involved whenever a new product or commercial utility is launched. It is a useful strategic tool for understanding market Investments in capacity expansion and digital developments emerging as strong growth drivers: Lego Group has made significant investments in capacity expansion and digital play domain which are turning out as strong growth drivers. Weakness This section is available only in the 'Complete Report' on purchase.

Originally known as PEST Analysis, this is a macro environmental framework used to understand the impact of the external factors on the organization and is used as strategic analytical technique. Lego is still struggling with its patent issues.

We will write a custom essay sample on Environment Analysis of Toy Industry or any similar topic only for you Order Now The market environment has also pushes many well known brands to invest a major part of their budgets on research and development, allowing them to introduce new products continuously.

Toys r us pestle analysis

In recent times with the up and coming working classes of Chinese people are demanding more pay and benefits, some that we in the UK take for granted on a daily basis health and safety, Severance pay, etc. Technological Enviroment The Technological Environment of the toy industry is very highly paced ,with toy fads coming and going within the toy market continiusly. Social Today's children differ greatly from the children from just a few years ago. It is a useful strategic tool for understanding market Political Environment The politiacl envirment is more driven towrds trade restriction within China and Chinese currency develpoments, as most of toy trade is manufactoered within its counry. Nowadays, children are more interested in video games compared to traditional games Blake Snow, That will then be followed by a well-referenced and well-researched PEST analysis that will highlight the most In recent years, there has a research indicate that children have more money to spend with the reason of pocket money given by parents had arise Jens Bonke, The Legal environment of the toy industry is also continuously protecting and fighting for its copyright on its products.

Threat of substitute product The threat of substitutes are growing with the continuous growth in demand, with children at a very young age having access to high technological gadgets and platforms This has driven toy companies to incorporate more technology within their products, as toy companies are now in direct competition not only with other toy products but also with traditionally non toy products such as, Tablets, computers, smart phones and even Mp3,s offering gaming within their technological platforms.

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UK Toys and Games Market Report