Swot Analysis: SWOT Analysis Of The LEGO Group

A. SWOT Analysis
1. Strengths
1.1. Partnership with Strong Brands
The LEGO Group is quick-witted in entering into a licensing agreements with iconic brands such as DC Entertainment, Marvel, and Disney, which had given them the green light to produce a series of toy collections and playsets for children to play with. (The LEGO Group, 2011) From a strategic standpoint, the LEGO Group is capable of understanding their main consumers’ (children) interests and catering to their needs by producing toys that are relatable to their age preferences; boys are infatuated with superheroes while girls prefer roleplaying themes. (Ringen, 2015)
1.2. Diversifying their Businesses
The LEGO Group has also expanded into other market sectors such as film, televison

Weaknesses
2.1. Main Consumers Lack Buying Power
The LEGO Group’s product lines are mainly directed towards children, yet the ultimate decision to purchase these LEGO bricks is heavily dependent upon the parents. Most of the time, the children had little to zero influence over what toys their parents chooses to let them play.. The critical issue for the company is to continue to entice the children’s interest in their product, while concurrently, directing their marketing efforts towards the parents.
2.2. Excessive Focus on a Single Product
The main weakness of the LEGO Group is that majority of their marketing efforts and product lines are centered around the sales of their LEGO bricks. The company also admitted that the LEGO brick is undeniably the core foundation of the LEGO Group. (Mortensen, 2012) Such reliance upon a single product may present huge risks. For example, if the LEGO brick losses their popularity in the long term, it would be difficult for the company to bounce back even if they attempt to introduce a new toy other than the LEGO brick in such a short

Opportunities
3.1. Expanding into Asian Markets
With the popularity of their television series such as LEGO: Ninjago, and LEGO: Legends of Chima in asian countries like China, (Girard, 2013) it is an indication that there is a certain demand for more of LEGO products in such regions. The LEGO Group could consider opening a manufacturing facilities in Asia so as to drive down profits and be responsive to such demands. By venturing into potential markets, it allows the company to create more sources of revenue instead of simply relying on North America and Western Europe markets.
3.2. Digital Gaming
Due to technological advances, children nowadays would prefer to play with games on the screens as opposed to LEGO bricks. As a result, the toy industry is becoming stagnant due to direct competion from the gaming industry. Instead of perceiving it as a threat, the LEGO Group should see it as an opportunity by shifting their focus from physical sales to digital gaming. As the world is becoming more virtual, it gives the LEGO Group all the more reason to fight for their share of profits in the gaming industry by creating more digital content to satisfy their consumers.

4. Threats
4.1. Counterfeit and Clone