Lego PESTLE Analysis

Published by MBA Skool Team, Last Updated: April 15, 2020

PESTLE Analysis of Lego analyses the brand on its business tactics. Lego PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as Lego, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the Lego PESTLE Analysis:

Political Factors:

The political factors in the Lego PESTLE Analysis can be explained as follows:

Lego has the approach of not taking an interest intentionally in any political occasion, they avoid governmental issues and this arrangement is depicted through their activities on different events. They denied giving a mass request to a Chinese Artist Ai Weiwei for his display in Australia for the right to speak freely of discourse; the issue is of political significance subsequently Lego declined the request. Be that as it may, this disavowal didn't dishearten the craftsman who is currently taking gifts for Lego sets from his fans and supporters and if this would not be sufficient, he will purchase recycled sets from closeout. The craftsman condemned this activity as being oppressive and an out and out inconsistency to their case of moving youthful personalities and manufacturers of future as they have would not offer their item to a craftsman. In the past Lego has related itself with workmanship and presentations by helping craftsmen with their blocks to express their specialty and ability. The craftsman has recently utilized Lego blocks to manufacture representations of political pioneers who were held in jail.


Image: pixbay


Economic Factors:

Below are the economic factors in the PESTLE Analysis of Lego:

Lego bunch in 2006 it declared that it would shut down its plant in US following 70 years of business. The organization wiped out around 1200 occupations causing monetary ruin. It referred to the developing electronic device messing around culture in US of late. The organization was one of the last toy organizations assembling child toys in America. This factor constrained out Lego Gathering out market in light of the fact that the new patterns were more appealing than their toys. The organization had to migrate to Mexico since activity cost was less expensive contrasted with different areas. New York-based autonomous toy examiner Chris Byrne takes note of that dynamic social culture has affected children to begin playing computerized music players and computer games than conventional toys. From that point the Gathering has begun contributing on kid-accommodating toys to quit falling deals.


Social Factors:

Following are the social factors impacting Lego PESTLE Analysis:

Lego organization has worked together with UNICEF to secure and defend privileges of youngsters by taking out kid misuse and kid work. It has an extremely clear position on these issues and every conceivable activity to improve the present circumstance. Lego has vowed to be capable in its business direct as toys are most unequivocally and sincerely associated with kids, accordingly the onus of creating toy characters that are solid for youthful personalities lies on them. Being the market head now its Lego's duty to help kid welfare issues and it is doing as such, it has vowed to give UNICEF a complete $8.2 million in the coming a very long time so as to be put resources into kid welfare ventures, especially for youngsters living in combat areas. Lego accepts that a youngster's psychological and scholarly development depends a great deal on the sorts of difficulties and exercises they perform at a youthful age and these kids who live in combat areas don't develop rationally as dynamic as others.


Technological Factors:

The technological factors in the PESTLE Analysis of Lego are mentioned below:

Lego has worked together with Texas Instruments to make robot that keeps running on unrivalled innovation. The robots worked with this innovation would be constrained by remote controls, Bluetooth gadgets and so forth. Lego Robot stage isn't accessible available to be purchased yet in addition for instructive purposes. Lego is known as the Apple of toy industry due to its constant development and inventive advertising and circulation system. It is available in excess of 100 nations everywhere throughout the world. One magnificent case of viable and astute showcasing by Lego is production of vivified arrangement utilizing its Ninjago characters, they realized that the more kids will watch these arrangements the more they will be genuinely joined to these animation characters and along these lines will request that character explicit toys.


Legal Factors:

Following are the legal factors in the Lego PESTLE Analysis:

The Lego operates in different countries, so it has to be very careful regarding the rules and regulations of the countries in which it is operating. It should check whether the government policies or judicial don’t affect its business in negative sense. It should also keep in mind that different countries give different level of protection for the intellectual property rights. In 2017, Lego has won the copyright case against two Chinese companies. The products were manufactured under the name Bela and it was the copy of Lego which is hurting the business of Lego significantly. After winning the case, Lego now has the chance that it will file more suits against the companies violating its trademark.


Environmental Factors:

In the Lego PESTLE Analysis, the environmental elements affecting its business are as below:

The consumers today are becoming more and more conscious about the environment and the negative impact the companies have on the environment. Lego is making great efforts in reducing its carbon footprint by making product more sustainable and environment friendly. The Lego group has met its 100% renewable energy target three years ahead of the schedule on 2017. It has now set an ambitious target of finding and implementing sustainable alternatives to plastic materials by 2030. Lego us also focusing on being energy efficient while producing Lego bricks and till now it has improved its energy efficiency by 12%. Apart from it, they are also determined to reduce the CO2 emissions and it is encouraging its support suppliers to reduce the carbon footprint.

To conclude, the above Lego PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

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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