Published by MBA Skool Team, Last Updated: September 29, 2021
SWOT analysis of Lego analyses the brand by its strengths, weaknesses, opportunities & threats. In Lego SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Lego to benchmark its business & performance as compared to the competitors. Lego is one of the leading brands in the media & entertainment sector.
The article below lists the Lego SWOT (Strengths, Weaknesses, Opportunities, Threats), top Lego competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
For Lego, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Let us start the Lego SWOT Analysis:
The strengths of Lego looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Lego :
1. Lego incorporates educational features to develop key skills in young children
2. Lego has a strong brand name across the world in over 50 countries
3. The company has a wide range of toys which are multi colored interlocking blocks made of plastic
4. The company uses high quality products to ensure the safety of the children who use these toys
5. Lego encourages goal oriented play and problem solving among little kids which enhances their brain activity
6. Legoland theme parks are extremely popular tourist destinations and offer a variety of rides and entertainment
7. The brand has also diversified into video games, TV and movies, merchandise etc.
8. Lego has a top of the mind brand recall owing to TVCs and extensive advertising via online channels, social media etc.
9. The company has a strong legacy since it was formed in 1949
10. The brand has also opened more than 100 stores across 20 countries
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Lego SWOT Analysis:
1. Imitation of products and brand name is a concern for Lego
2. Intense competition means high brand switching and also loss of market share to online games
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Lego SWOT Analysis:
1. Organize competitions in schools for children so that kids have a strong affinity towards the game
2. The company can diversify into other segments so that the brand can continue to grow
3. More branding exercises to reach out to newer segments is an exercise which Lego can use to grow
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Lego are as mentioned:
1. Changing preferences of children and their parents towards physical toys as compared to online learning tools
2. Increasing competition can impact the business operations of Lego
3. Fluctuating currencies can affect the business of the brand globally
There are several brands in the market which are competing for the same set of customers. Below are the top 7 competitors of Lego:
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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