Lego’s Secrets Case Solution & Answer

Lego’s Secrets Case Solution 


The LEGO Company was developed by Ole Kirk Christian-sen in 1932. The company’s name has its derivation from the Danish phrase “leg godt”, which means play well. Ole was basically a carpenter in Billund, Denmark. The company’s headquarters was located at Billund. LEGO had remained well-known among its target market for providing a creative and imaginative experience to its users, thought its diverse range of products. The company’s start-up phase involved the production of wooden toys; however, in 1947, the company’s owner initiated plastic toys, making it the first-ever Danish toy-maker to experiment with plastic despite of the fact that the plastic could’ve never been a replacement for wooden toys. The company had transitioned itself from a small toy wooden toy maker to being the world’s first class toy-maker with highest revenues, LEGO Company had revealed a remarkable success. The case revolves around the key secrets behind LEGO’s success.

Problem Statement

LEGO had been present everywhere, due to its tremendous growth and its diverse range of products, including: toys, magazines, games, retail stores, books, theme parks and movies. The company started in 1932, whereby a small carpenter started making wooden toys and the company turned out to be the most successful toy manufacturer in the world. The case highlights the key secretsbehind the LEGO’s success. How could a small toy manufacture become so successful? What are the top secrets and what should LEGO do to maintain its top position in the market.

SWOT Analysis

In order to analyse the internal resources, weaknesses, the external opportunities and threats for the LEGO Company; a SWOT analysis has been performed, which is explained below:


  • LEGO’s products are unique and the bricks are considered as toys with a difference. A single set of LEGO’s brick can be used to create hundreds of combinations, using permutations and combinations.
  • The company has a diverse range of products, which enables it to grab a larger market share and a higher profitability.
  • LEGO has a wide global as well as online presence. The company sells its products in more than 130 countries.


  • LEGO’s prices are comparatively higher as compared to the prices offered by the other market players, which makes it difficult for the company to attract the price conscious customers.
  • The company’s products are easily copied by other industry players, though the products are offered with alower quality but the competitors are able to copy the company’s products, ultimately grabbing the market share from the company…………………..
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