2.1 Issues identified from the situational analysis of Lego Group 乐高集团情景分析中发现的问题
One of the issues that were identified from the situational analysis of Lego Group on the Australian market was the fact that despite its dominance on the global toy market, this company faces stiff competitions from both local and international players on the Australian market. From the situational analysis, it was established that Lego’s nearest competitor on the global market has approximately 13 percent of its brand value, thus giving Lego a significant edge over its closest competitor (China Daily, 2017). Whereas this is the case, there was no guarantee that Lego Group would transform its success and leadership on the global market to the Australian market.
Similarly, the situational analysis revealed that Australia is a large country and as a result, one of the greatest challenges that businesses and organizations that operate in this market face is logistics (Reece, 2017). The logistic problems are made worse by the fact that unlike countries such as the United Kingdom and United States that have invested significantly in the transport network, Australia is yet to develop such network, thus making it difficult to reach some regions. This means that one of the major challenges that Lego Group faces on the Australian market regards its ability to reach target consumers who lives far away from large cities such as Sydney and Melbourne.
Similarly, the findings from the situational analysis indicate that some toys such as construction toys, games and puzzles are among the leading toys on this market (Kneebone, 2018). Arguably, the popularity of these toys on the Australian market is influenced by the fact that the majority of consumers on this market prefer interactive toys to any other form of toys on the market. This means that toy brands that promote interactive toys on this market are likely to attract positive attention from the target consumers and as such, gain a significant market share. As such, Lego Group faces stiff competition from different existing and new companies that have invested significantly in the development of interactive toys on this market. Furthermore, whereas the Australian children spend less time playing electronic games, situational analysis findings indicate that companies that promote electronic games are steadily expanding their market share in Australia through the introduction of interactive electronic games. This implies that if Lego concentrates only on its flagship plastic brick toys, it will completely lose its relevance and influence on this market.