The world famous toymaker, The LEGO Group, assembled an internal management team to create a strategic report on LEGO’s different product lines and business operations. In recent years, numerous threats to LEGO had emerged in the toy industry. The acquisition of Marvel Entertainment by The Walt Disney Company created major implications for valuable toy license agreements. LEGO had also recently lost a long legal battle with major competitor MEGA Brands, makers of MEGA Bloks, with a European Union court decision that removed the LEGO brick trademark. Furthermore, the second-largest toymaker in the world, Hasbro, was preparing to launch a new rival product line called Kre-O. It was critical for the management team to identify where to expand LEGO’s product lines and business operations, in order to develop a competitive strategy to continue the organization’s recent years of financial success and dominance in the building toy market.
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