It could be indicated by the market share of the corporation in worldwide as

It could be indicated by the market share of the

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products. It could be indicated by the market share of the corporation in worldwide, as they enjoyed a 5.6% market share in worldwide traditional toys and games sector and a 60.9% market share in the worldwide construction toys category. For example, when consumer 3
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intend to have a construction toys for their kids, they would consider the products of Lego first rather than competitors’ products. Additionally, Lego Group has a strong financial with sustainable growth which indicated by the statement in the case study (Exhibit 3). The statement showed the three years (2009-2011) financial results and compared to its main competitors Hasbro Inc. and Mattel Inc. Among the three companies, Lego Group performed better than the other two companies. During the three years, Lego Group’s total revenue grew from USD2,177.90 million to USD3,495.70 milion (60.5%) while the competitors’ total revenue was only growing not more than 20%. Furthermore, the net income of Lego was able to grow about 88.6%, while competitors was 2.8% and 45.4% respectively. The result indicated that Lego Group has the competitive advantages in the market, which was a strength to the company itself. Moreover, Lego Group able to capture the latest trends in the market. It allows Lego to launch the new products based on the current market’s preference. In order to do this, Lego tie-ups with movie franchises such as Toy Story, Star Wars and Harry Potter. The corporation associated with these movies because they are able to attract the attention of the major target audience of Lego which is children who aged 6-12 years old. Furthermore, Lego have different themes and license that bring a new and exciting creative experience to children at the same time bringing a lot of refreshing memories to adults. This is one of the strengths by Lego in which its competitors do not have. While the weakness analyses the Lego Group’s internal that they have some control over and can be changed accordingly to the current situation. In years, Lego products were sold internationally to about 130 of countries. It can say that exposure to international market 4
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could be a weakness for the Lego Group. It is due to exposure to international market would involve a lot of aspects in which need to be considered by the corporation, for example the legal aspects like the safety requirement of certain country. Some of the country like Vietnam and China, their toy safety standard become more stringent. Other than that, the fluctuations of foreign currency would pose a major risk for Lego Group. In addition, the Lego’ s products price is very expensive while compared to products of competitors. A lot of people in the middle income and lower class of society was considered unaffordable to the products. Because of this, the products only accepted by small portion of audience.
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