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LEGO Value Chain Analysis

Primary Activities

S.W.O.T Analysis

Inbound logistics: One main supplier, Use of standard commodities, 3D printing

Operations: Production according to future demand, patents on plastic derivatives

Outbound logistics: Seasonal sales, Use of DHL superior delivery

Marketing and sales: Brand value, Good strategic partners, High availability

Services: Web community, Loyal customers, Downloadable manuals

Determining strengths and weaknesses of LEGO

Support Activities

Firm infrastructure: Delegate activities, Cost effective

Human resources: Highly rated employer, benefits e.g. management workshops, good hours, great overall work satisfaction.

Focused on: Employee motivation and satisfaction

Attracting the right people

Compensating and rewarding a global workforce

Cultural and gender diversity

Tech development: Connection to technology, R & D, Software

Procurement: Quality control, Financing

Analysis and Assessment

Primary and Support Activities

Mission Statement

‘Inspire and develop the builders of tomorrow’

‘Inventing the future of play’

Strengths

Market Oriented

Weaknesses

LEGO is Market Oriented for the reason of their focus on high quality products and loyal customer base in order to remain a luxury product.

A) Incorporates educational features to develop key skills in young children

B) Strong brand name across the world in over 55 countries

C) Encourages goal oriented play and problem solving

D) Strong product portfolio

E) Lego based theme parks are extremely popular tourist destinations

F) The brand has also diversified into video games, TV and movies, merchandise etc.

A) Imitation of products and brand name is a concern

B) Intense competition means need for brand diversification and also loss of market share to online games

C) Safety issues and hazards.

Core Competencies

Coordination Mechanisms

What are the core competencies of LEGO?

Mutual Adjustment

Standardisation of Norms

Out-, and Insourcing

Conclusion

Globally recognized brand name as a leader in creative and imaginative toys.

Focus on high quality standards, design and an efficient supply chain.

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