Strategic Analysis of LEGO Group

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It is one of the processes of conducting the research on the external and internal environment which operates for the regulation purposes and helps in the formulation of strategies. It gives a theoretical understanding of the business environment in which the organization is operating to improve organizational efficiency and also effectiveness. It also helps in formulating strategy which has the capacity to deploy and also redeploy the resource effectively and intelligently. The usage of strategic analysis models differs in several organizations as they are of different nature and also have considerable influence on the organizational outcome.
Although Lego Group is one of the most successful toy making companies, it has not been able to develop advanced business models which have the capacity to gain a competitive advantage over its competitors. The key issues that Lego Group is facing are as follows: The company supply chain management system is based on the low-cost production techniques which have the potentiality of building in-house capacity and not on-storage and transportation purposes (Handfield, 2011). The company has not developed a technique which focuses on the coordination of the different production capacity lines while delivering regionally and internationally. The advertising section of the company is weak. It follows the traditional forms of methods of promoting like print, media and social media (Hill and Jones, 2009). Justification amp. Evaluation The chosen strategic analysis tools for the situational analysis and the external force of the business environment affecting the company would be the SWOT, Porter’s Five Forces Model amp. Value Chain Analysis. SWOT analysis helps in assessing the strength, weakness, opportunity, and threats of the Lego Group because it directly points out the strength, weakness, opportunities, and threats to be faced by the company with respect to the business environment (Muller, 2005). One of the major reasons for choosing the SWOT analysis would be that it is not a time-consuming process and does not involve any cost in the preparation of the strategic analysis tool. Moreover, it allows the strategic evaluation of the four areas individually which act as interacting factors. In this context, SWOT analysis would help in gathering information about the toy industry in a collective and cohesive manner with a good starting point from the strategic plan. Information regarding the Lego Group and the US toy industry would be given along with the current strategic position of the company (Landsecurities, 2012).The concept of the value chain and five force model was implemented by Michael Porter in the year 1986. The concept of value chain helps in breaking down the activities into various elementary operations