Lego Merger & Acquisitions

Mergers, Acquisitions, and Alliances Lego Homework

Megabrands within a Toy Industry

The current industrial scenario of 2027 has referred to as “the age of the product

extension”. An increase in cheap energy has resulted in a surge in consumer spending, especially

within products extensions into sequels. Customization of products, whether it be games or

sports, has allowed for a better opportunity to target individual niches. In today’s industry it is all

about individuality, adopting “themes in entertainment, sports, recreation, and appearance”.

Megabrands introduced within the toy industry allows for customizable products, which

essentially is the introduction of differentiation to an already existent and well developed

industry.

One major player in this new phenomenon megabrand game is LEGO, nearly 100 years

after being founded in Billund, Denmark. The company expectation of both quality and

originality speaks to the desirability of customization and individuality. Its ultimate purpose is to

inspire creativity, systematic thinkers, and potential to shape the future for young children across

the world. Unfortunately, a source of uncertainty with this new approach to doing business puts

LEGO in a scenario similar to that prior to the placement of Knudstorp. Implementing areas

outside of its main strategic plan may result in its