Ch. 2 - Strategic Planning for Competitive Advantage

Over the decades, the LEGO group company has been through a several changes to adapt to the changing business environment. At the early stage of the company, they began to manufacture plastic toys to meet market demand and it eventually dominated the half product sales of the company. After the LEGO System of Play being established, it formed the sales model of the LEGO play group.
 

The idea of Lego system of play is that the Lego bricks are sold into different set. Every set has a theme in it. The little bricks can be combined and constructed into variety kinds of themed building and vehicles. The huge success of the Lego system play has formed the marketing planning of the company. By following the mission statement, the limitless possibility of LEGO system of Play inspire creativity to children. The ability to inspire infinite creativity is what sets Lego apart from any other toy retailer. It is also the product differentiate competitive advantage of the company which keeps them remain the leading position in the industry. 

Nonetheless, for long term sustainability, the company is seeking a way to develop new market. In 2009, statistic shows that 90 percent of Lego’s consumer were boys. The construction theme does not seem work for girls and it makes the company start to think how they can get a share in the girls market. After four years of research, the company finally come up with a product line to address the girl market. The Lego friends product line was launched in 2012. A description from Lego website stated: "The Lego Friends story centers on the everyday lives and personalities of five girls in a fictional hometown called Heartlake City. Each of the friends ... has a distinct personality and interests, such as animals, performing arts, invention and design, that are reflected in the models. Building sets reflect different parts of town where the girls' adventures take place—downtown, suburbs, beach, camping grounds and mountains." The result was a pleasant surprise. The launch of Lego Friends came after a $40 million global marketing push and doubled the sale expectation. It was one of the biggest success in the Lego history. Although the establish of Lego friends had cause controversy on gender equality, the Lego company successfully address the company weaknesses and develop a target market strategy to expand market share.