MGMT3010 Strategic Management Final Group Report.docx - Executive Summary This report was done for the investigation of Lego bricks on the market and to

MGMT3010 Strategic Management Final Group Report.docx -...

  • Curtin University
  • MGMT 3010
  • Test Prep
  • kattyshu
  • 36
  • 100% (18) 18 out of 18 people found this document helpful

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  Executive Summary This report was done for the investigation of Lego bricks on the market and to bring changes in an innovative way to lure more customers and prevent brand switching propensity. In this report, recommendations are developed to aid the Lego group to be different from its competitors and to be the leading on the market around the world. Here, strategic issues that Lego is actually encountering, more precisely a decrease in sales, lack of innovation, rise in competition and direct competition from other big company, Nintendo and Mattel. This report has investigated the company both in an internal and external aspect. The external analysis which comprises of PESTEL analysis, Porter’s 5 forces, a strategic map and a competitive analysis, indicated that Lego group was the leading company earlier and it is now facing a decrease in the market share and there are new entrants and also the existing competitors. Hence, Lego is not able to take the challenge as other companies are climbing the ladder taking into consideration the needs and wants of the customers which brings customer satisfaction. Some possibilities and opportunities are mentioned in the report taking into account bring changes in their products such as being innovative as we are in a technological world, customise the products for the blinds with the help of braille system, be in partnership with a sustainable plastic producer, donate unsold toys that are exposed for a longer period but still is not sold; so, they donate to needy people. Further introduce Lego App to ease buying instead of losing time to go to a physical store which will bring a rise in demand, also augment the profitability of the company and which can be a disadvantage for competitors. Moreover, an internal analysis is done through VRIO Framework, Value Chain analysis and a BCG matrix of Lego Group which help to identify various strengths, weaknesses of the organisation. Some of the strengths that are discussed in this report are firstly, high quality products, secondly improving key figure -LEGOLAND (theme park) Attracts as many as 1.5 million visitors per year. (Lego world, 2018) thirdly valuable, customer loyalty (Kodish, 2015) and finally the products are unique (Lind et al. 2014) Some of the weaknesses Lego is expensive compared to its competitors only to maintain its high standard, secondly, reduced product design possibilities (Peysakhov and. Regli. 2003.) and thirdly limited product range. This will further explain in the SWOT analysis.   The external and internal investigation which helps in progress of TOWS matrix shown in this report which then aid in designing new innovative recommendations which further be beneficial for the company on a long-term basis. Corporate level and Business level recommendations is undertaken to help Lego group to be innovative and unique trying to bring back its good position and competing with existing competitors on the market. The major key component is to gain back the customers lost and attract potential customers.
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