Lego reconstruit

Since 1949, the lego Group has manufactured over 400 billion plastic bricks, tiny tires, mini-figures, and other inter-compatible play pieces, making it the world fifth-largest toy manufacturer and the largest in Europe. From 1932 through 2001, lego group achieved remarkable successes, capturing 80% of the US construction toy market in 1992. From 2001 through 2004 though, lego group experienced significant financial difficulties due to adverse industry changes and internal problems. More recently, lego has launched a three-phase turnaround strategy with the aim of establishing a profitable core platform and preparing for growth. In this study, we will walk through the important phases in lego's history focusing on changes within the company and the industry at-large and conclude with a critical analysis of lego‟s turnaround strategy. How attractive has the traditional toys and games industry been over the 20th century? Porter's Five Forces model provides a framework to evaluate the power of suppliers, threats of new entrants and substitutes, buyer power and the degree of rivalry.