Lego SWOT Analysis [Update 2022] ❤️

Lego SWOT Analysis 2022

Lego SWOT Analysis: Lego Group is a Danish firm that produces toys. The company’s most popular product “Lego” includes interlocking plastic blocks which can be used in a variety of ways to facilitate the improvement of a child’s motor abilities. Lego is a market leader in its field. 

This article will take a look into Lego’s SWOT assessment of Lego’s brand. Before we dive into the in-depth study of Lego’s SWOT take a look at the brief highlights of the company in the following.

Lego SWOT Analysis

Company Overview

Name The Lego Group
Founders Ole Kirk Christiansen
Chief Executive Officer (C.E.O.) Niels B. Christiansen
Tagline only the best is good enough
Headquarters Billund, Denmark
Type of Corporation Private Aktieselskab
Year Founded 10 August 1932
Revenues (2020) $7.54  B
Key Products/Services Toys
Key Competitors Bandai Namco, Mattel, Hasbro, and Gibsons

Company Overview:

Over the past eighteen years, Lego has been a tool in families where parents and children use the bricks that can be stacked to unleash their creativity and ideas. Lego is an owned and operated family company established around 1932.

It was founded by Ole Kirk Kristiansen, who was a carpenter. He had the idea of combining two Danish terms ” leg godt” meaning “play well” and “leg godt,” meaning “play well”. 

Nowadays, it’s one of the biggest toymakers. Lego achieved solid growth in the year 2020, possibly due to the lockdowns triggered by the pandemic in the world, that forced everyone to stay home. 

Lego revealed that more kids and even their own fans had fun with Lego as evidenced by their rapid growth in consumer sales, revenue, and operating profits. Their revenue increased by 13% to $7 billion, while operating profits rose 19% to reach $2 billion. 

In the first quarter of the year, 2021 Lego’s revenues were up 43% year-on one year to $3.6 billion, and profits were $1.75 billion.

Strengths In The SWOT Analysis Of Lego 

The term “strengths” refers to what a business can do best in all its operations that can give its business an edge over its rivals. These can be the advantages of Lego:

❤️ A toy that is different: Lego is a set of bricks that are susceptible to a range of combinations and permutations. It is believed that the set of six eight-stud Lego bricks could be used to make 915 various combinations.

❤️ A type of creative expression: Lego is more than simply a toy. It is considered to be an art of expression and studies show that children who play regularly with Lego toys are more adept at gross and fine motor abilities.

❤️ Many options: The variety of options that can be created with the set of Lego blocks is often more than only an entertaining game but also a challenge for users. This is why these options can be addictive.

❤️ The Tieto tie-ins with the film series: Lego has been associated with Harry Potter and there’s also been an animated film titled Lego which has managed to draw the interest of the main audience. of the audience, which is children.

❤️ Multiple themes: Lego Toys has multiple themes and licenses and while it is churning out incredible and exciting imaginative experiences for children, it also brings lots of reviving experiences for the adults.

❤️ Attention to particulars: Lego Toys has always been a favorite for its care for the smallest of details. The inherent design of every block guarantees a perfect fitting and that is the main selling point for the product.

Weaknesses In The SWOT Analysis Of Lego 

The term “weakness” is often used to describe areas in which the company, as well as the branding, requires improvements. One of the major weak points that Lego has Lego is:

❤️ Costly: Lego toys are extremely expensive and thought to be out of reach for the majority of people living in the middle and lower rungs of society. This is why the toy is appreciated by a small segment of the population.

❤️ The costs of conducting research The main selling point for Lego is the age-appropriate toys, where every new concept is customized to fit the specific age group for which it’s meant to be used. The company strives to never duplicate its designs, which means that research is crucial and it raises the cost of research.

❤️ Cost of the material: Lego is made of ABS plastic that is specially made to fit Lego bricks. It is high-quality plastic, and it is costly.

❤️ Taste of the customer: Though Lego positions itself as a toy suitable for kids of all ages, However, not all children develop an appreciation for the toy. So, very few children know how to play with Lego and also enjoy using it.

Opportunities In The SWOT Analysis Of Lego 

Opportunities are the avenues within the surrounding environment surrounding the company on which it could capitalize to improve its earnings. Opportunities are:

❤️ A greater focus of parents on toys that are creative as families become more nuclear, and the emphasis of parents is improving the skills of their children. This is causing them to spend money on toys such as Lego which have been proven to aid in motor abilities as well as brain development as well.

❤️ An increase in activity-driven education: Schools today focus on active learning, which makes students look for interesting toys that are able to teach students the basic concepts. This has led to several schools deciding to invest in educational tools. This presents the perfect chance for toy manufacturers.

Threats In The SWOT Analysis Of Lego 

Threats are the factors that exist that are present in the world and could hinder the expansion of the company. The most common threats are:

❤️ The risk of substitute: Lego is an extremely expensive choice and might not be accessible to the majority of income brackets. Therefore, they look at other alternatives, such as cheaper building blocks or other brain-building toys.

❤️ Contrabands Nowadays, there are many counterfeits of Lego available, made of less expensive plastic. Because there isn’t a huge danger in using counterfeits, they could be used over the original, which could affect the demand for Lego.

Limitations of SWOT Analysis for Lego

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is extensively used to plan strategic strategies However, the analysis has some limitations.

  • Certain abilities or aspects of an organization could be both strengths and weak points at the same. This is among the main drawbacks that SWOT analysis has. Changes in environmental regulations can be an opportunity and a threat to the company. However, however it could also be an opportunity in the sense that it allows companies to compete in a position to compete with their competitors or even gain an advantage over competitors when it could develop its product more quickly than their competitors.
  • SWOT is not a method of determining how to get a competitive edge and therefore it shouldn’t be a complete solution.
  • The matrix serves as an initial point of reference for an analysis of how the proposed strategies can be implemented. It offered an evaluation window, but no implementation plan that is based on the strategic competitiveness of Lego
  • The SWOT model is a static analysis that analyzes the existing conditions and a small number of potential modifications. When circumstances, capabilities as well as threats, and strategies alter, the dynamic of the competitive landscape cannot be analyzed in one matrix.
  • SWOT analysis could cause a company to focus too much on one external or internal element in formulating strategies. There are interrelations between the most important external and internal elements that SWOT doesn’t reveal, which can be vital in formulating strategies.

The SWOT analysis of Lego is weighted and weighted.

Given the previously stated shortcomings of the SWOT analysis/ matrix, the corporate management has decided to assign the weightage to every weakness and strength of the business. 

Companies also evaluate the probability of future events happening in the near future, and what the effect can be on a firm’s performance.

This method is known as a weighted SWOT analysis. It’s better than a simple SWOT analysis since, With weighted SWOT Analysis Lego, managers can concentrate on the most crucial aspects and eliminate the less important ones. 

This also helps solve the problem of a long list which is when organizations make lengthy lists but not addressing any is considered to be crucial.

References / Citations & Bibliography

  • M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
  • A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
  • O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
  • L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
  • R. E. White, Generic Business Strategies, Organizational Context and


What are the disadvantages of LEGO?

Legos are made of 100 percent plastic, which has been found to be a source of dangerous chemicals. Furthermore, when toys made of plastic break, they break up into smaller and potentially dangerous pieces. Because they are made of plastic, Legos create more impact on the earth during their production as compared to wooden toys.

What is the unique selling point of LEGO?

The item has an additional selling feature. The toy brand LEGO intends to bring to life the imagination of children and allow it to make a mark in the marketplace of toys, cars computers, and other games. The company promotes it as a ” system of play” and could be a powerful selling point in trying to compete against educational toys.

What is Lego business strategy?

The LEGO Group will continue to increase its strategic investment in new product development and manufacturing capacity, retail channels, and digitalization to boost year-over-year or long-term development.

What is Lego’s competitive advantage?

Their main competitive advantage is their ease in their construction. It’s simple, flexible, and durable. The other companies are a bit restricted in what they can make. With LEGO creativity is the only limit.

How is Lego innovative?

This is something that Lego has pioneered for a long time and is the foundation of its design-thinking.” Gram calls the plastic Lego brick a platform similar to the operating system of a computer is. The possibilities that the company is imagining will be based on what’s possible with the bricks. Today, they’re the robotics industry, IoT, and AI.


On the other side, the biggest weakness of Lego is in the protection of its intellectual property rights. However, Lego’s strength lies in its ingenuity, high-quality product licensing agreements, and high-quality.

In the future, Lego has many opportunities to explore. Expanding into new territories is among the largest opportunities. But, at the same time, the biggest dangers to Lego are imitation products.

With the fierce competition in the toy market, Lego as well as its competitors are attempting to attract the attention, enthusiasm, and love of children. 

Each business has come up with its own plan of action. At present, Lego remains competitive.

If you like the SWOT analysis, you might want to check out other SWOT analysis examples that we’ve created. 

If you’d like to create the SWOT analysis of your own you can read our posts on the SWOT analysis as well as the template for SWOT analysis.

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