Question

The future in the building toy market held both opportunity and uncertainty, with new threats emerging from increased control over licensing agreements, loss of trademark protection and competition fromTnew and existing sources. It was important for the LEGO management team to

(Question) "identify where to expand current product lines in order to help the company formulate a strategy to ensure that LEGO"

(which country should be the next one to expansion and why)

FYI.

At this moment, there are already 48 countries

1. Austria
2. Belgium
3. Brazil
4. Canada
5. Chile
6. China
7. Columbia
8. Costa Rica
9. Czech
10. Denmark(1st) (+Legoland)
11. Dubai (+Legoland)
12. England
13. Estonia
14. Finland
15. France
16. Germany (+Legoland)
17. Greece
18. Hungary
19. India
20. Ireland
21. Italy
22. Japan (+Legoland)
23. Korea
24. Latin America
25. Latvia
26. Lithuania
27. Luxembourg
28. Malaysia (+Legoland)
29. Mexico
30. Netherland
31. New Zealand
32. Norway
33. Panama
34. Peru
35. Poland
36. Portugal
37. Russia
38. Singapore
39. Slovakia
40. Slovenia
41. South Africa
42. Spain
43. Sweden
44. Switzerland
45. Turkey
46. United Arab Emirates
47. United Kingdom
48. United State (+Legoland)

Answer 1

Lego is continuing to make significant investment in China and India. This is evident from the fact that even though there was an increase of 4 percent in the company's revenue for the year 2019, there was a decrease of 12 percent in it's net profit for the same year.

Still the company's CEO is satisfied with the performance as the company is looking forward to transforming it's strategy in order to explore this strategic growth market. The company's established markets like USA and the EU countries have registered single digit percentage increases in sales but the Chinese market grew in double digit percentage.

Hence the Lego group is planning to continue investing in China and have more than 140 stores in 35 cities by the end of the year. Apart from this, the company will open 70 stores outside of China in this financial year.

The company has opened its third-largest factory globally in the Chinese city of Jiaxing. This has put Lego in a position to supply it's toys not only in the Chinese market, but other Asian markets too, including Japan and South Korea.

Besides focusing on China, Lego is also planning to open an office in Mumbai, India this year and through this expand it's business further in India.

According to company, India is a growing economy with an high percentage of middle class population, which makes this investment worthwhile. They can reach out to a large number of middle class children in India who are the potential customers as due to the increased level of education in the country, toys like the ones Lego makes will be in huge demand there amongst the children.