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.
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.
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.
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.