PESTLE Analysis
Political factors
The political condition of Denmark is very good because of the multi-party system. The government uses policies which helps the overall business of the country and makes it easy for the investors to invest. So the government makes it very easy for big companies like Lego to survive in turbulent economic times.
The operation of the company is also influenced by the policies of the European Union as they have to abide by the rules made by them. The European Union pay close attention to ‘’ Toy Safety Directives’’ rules for the security of the products for children and also give a careful attention with what materials the products are made of. Most of the research and development and production of toys are done …show more content…
Since 1980 the price of the Lego products have remained the same when compared to its rivals which proves that the company have taken a good advantage of lower priced market by opting to manufacture more average priced product than the expensive priced product.
The Lego Company was able to expand its territory overseas by obtaining important licenses, which gave them a major boost because now they have more customer then before.
Social factors
Children today are different from the children a few years back. With the latest innovation in the smartphone market the children are more into playing games in phones and tablets than playing with toys. With advanced technology around, the children learns quickly using internet and other digital learning methods so they do not prefer to play with toys or any traditional games. This change in the culture forced Lego to enter the digital market and grab some attention from their customers by launching an online multi player game called ‘LEGO Universe’ in 2010 and ‘LEGO World’ in …show more content…
Lego managed to create a very good customer relationship by using the social media and also provide the people to buy the genuine products on their official website. Marketing strategies is boosted because of the internet as now they can give the customer detailed information on their products and also inform them about their new arrivals, offers, discounts and upcoming products. This interaction mutually benefits both customers and the Group because they have a chance to communicate directly unlike old
Political factors
The political condition of Denmark is very good because of the multi-party system. The government uses policies which helps the overall business of the country and makes it easy for the investors to invest. So the government makes it very easy for big companies like Lego to survive in turbulent economic times.
The operation of the company is also influenced by the policies of the European Union as they have to abide by the rules made by them. The European Union pay close attention to ‘’ Toy Safety Directives’’ rules for the security of the products for children and also give a careful attention with what materials the products are made of. Most of the research and development and production of toys are done …show more content…
Since 1980 the price of the Lego products have remained the same when compared to its rivals which proves that the company have taken a good advantage of lower priced market by opting to manufacture more average priced product than the expensive priced product.
The Lego Company was able to expand its territory overseas by obtaining important licenses, which gave them a major boost because now they have more customer then before.
Social factors
Children today are different from the children a few years back. With the latest innovation in the smartphone market the children are more into playing games in phones and tablets than playing with toys. With advanced technology around, the children learns quickly using internet and other digital learning methods so they do not prefer to play with toys or any traditional games. This change in the culture forced Lego to enter the digital market and grab some attention from their customers by launching an online multi player game called ‘LEGO Universe’ in 2010 and ‘LEGO World’ in …show more content…
Lego managed to create a very good customer relationship by using the social media and also provide the people to buy the genuine products on their official website. Marketing strategies is boosted because of the internet as now they can give the customer detailed information on their products and also inform them about their new arrivals, offers, discounts and upcoming products. This interaction mutually benefits both customers and the Group because they have a chance to communicate directly unlike old