Introduction
Expansion is the most fundamental element which constitutes growth and relativity to success. Its growth and expansionism strategy have mainly relied on innovation and creativity in its operation. As part of its expansion, it has adopted brand-related Innovation (Xiaohan, 2020). The LEGO Group has been on a soundtrack in business performance with its Lego-brand bricks toys. Its purpose of inspiring and developing tomorrow’s builders is to teach the next generation, or rather the youngsters, to be creative, critical thinkers and to unleash their potential to determine their destiny. Similarly, using artificial intelligence (AI) technology, the LEGO Group’s vision is to make LEGO play more accessibility to those with vision impairment. As a result, LEGO as a company that can realize this vision and goal by putting its values, such as creativity, imagination, and making high-quality products into effect. As a result, this paper will go deeper into how successfully a LEGO group expansion plan can be built. In the same way, with a good structure approach, obtaining expertise to deal with barriers and critical issues with potential solutions for the LEGO group project in India.
Developing an Expansion Plan
The first step in extending the LEGO group’s plan in India is to learn about the Indian people’s culture, language, and other business etiquette and traditions. It is reasonable to believe that understanding the culture of the people in the area where one wants to expand a business is critical (Xiaohan, 2020). Sensibly, the same people will determine whether the firm succeeds or fails in the end, which is a worry that should be considered. Similarly, their language will influence how the transaction is conducted, whether through e-commerce or otherwise, because it will be challenging to learn more about the products if they do not speak a recognized international language. Finally, business etiquette and customs are important because the primary goal of a business or company expansion is to increase revenues, resulting in company growth.
The company has significantly invested in digitalization as a growth strategy. As a growth component, digitalization highly enables companies to meet the rising technological demands (Fonseca, 2019). The implications of technology on LEGO company production objectives have equitably enabled meeting the recently changing customer’s needs. Additionally, technology has spearheaded the global adoption of products and usability. The expansion entails meeting newer markets’ expectations and demands. Being a core objective of the company, digitalization has been considered and implemented as an integral plan of LEGO company. Digitalized platforms have highly contributed to enhancing a variety of toy products to suit the ever-changing customer demands (Fonseca, 2019). Digitalization has been adopted on numerous ends, most notably on the customer base. Being reliant on a vital segment of the population, the company rapidly engages in modernized toys, which have been validated to be captivated by the youngsters. As a factor of competitive advantage, LEGO has keenly improved the quality of its products to meet diverging needs of the market. It has placed it ahead of its major competitors giving it an edge in the product market.
As an expansion plan, marketing is a critical tool that often gives the company an upper hand over its competitors. Therefore, the company has adopted all stringent measures to effect and improve its marketing mix to incorporate both product, quality, and customer satisfaction (Grogan & de Weck, 2019). More so, LEGO has adopted market penetration strategies that have enabled the products to attain global coverage while effectively overpaying competitors’ forces. Such an approach has enabled the widespread of the products. Additionally, LEGO has conducted a pricing strategy validated as an essential tool that has attracted customers across the globe and within India. In its plan, LEGO aims at ensuring that effectiveness is served at a price to counter the rising forces of threats that are part of the business competitors.
Based on the expansion strategy of LEGO, I would structure my approach based on the following areas. The first step will focus on product improvement at large. LEGO mainly deals with toy products; therefore, the company must focus on the quality and nature of the product. Therefore, as a fundamental question, the company should ask the following question:
- What is the most affordable quality that is sustaining and effective for the customers?
- Which is the best digitalization platform to be adopted to enhance efficient output in terms of toy products to meet the diverging demands of the market?
- How well should current technology advances be integrated to enhance innovation within toy products?
The effectiveness of these questions aims at strengthening the capability of the company to stimulate its uniqueness hence enabling it to overpower its competitors. Objectively the questions will guide LEGO towards the attainment of its expansion goals. Furthermore, the effectiveness of the questions will largely attribute to a selection of the most desirable strategic plan to generate desired expansionism. Additionally, LEGO should consider diversification through licensing and merchandising. For instance, diversification has been proven to be the most effective way of creating a successful environment. Diversified licensing will adequately enhance LEGO’s capacity to instill numerous branches dealing with the same products over a broader range of markets. Licensing triggers success by establishing newer units across the market segment.
Acquisition of Knowledge to Answer the Questions
In an attempt to answer the questions mentioned above, insightful research should be conducted on critical elements of LEGO markets. For instance, need identification should be prioritized to cover a vital population segment (Bjørnvig, 2018). Regarding quality, the company should administer a compelling and conclusive research by studying the market components to identify the most reliable and highly consumed quality. Further, surveys should be conducted on digitalized platforms to mainstream the products of LEGO. A general overview of the existing market and its demand should be considered to find out the most reliable and better-performing product.
Challenges and Mechanisms to Address
Being a significant project, the critical challenges associated with the project include but are not limited to the following aspects. Firstly, highly complicated markets are related to intensive competition. Competition is a significant threat to the company’s expansionism objectives. Being monopolistic in the market, there are high chances of newer firms joining the business, posing a threat to its growth. Secondly, financial and legal constraints highly impede the capacity of the project’s success. For instance, unfavorable policies, especially from external markets, limit the capability of LEGO to engage in overseas markets. Conversely, financial constraints significantly limit its ability to go international (Boulter et al., 2022). As a solution to the identified challenges, effective budgeting should be adopted to encounter the cost implications effects. Moreover, a practical feasibility study should be conducted to examine the workability of the business operations from external markets concerning the existing rules and regulations. Such will put the business preparedness ahead hence improving its capacity to trade smoothly.
Finally, numerous businesses in their expansionism attempts encounters strong resistance, especially on cultural practices across the globe. To effectively handle such challenges, LEGO should enhance the flexibility of its strategic plan to incorporate shaky elements occurring in the business environment. The company should ensure that it considers all its recommendations and adopt effective way to implement them. LEGO should focus more on international market space and ensure that its customers are a priority to realize growth.
References
Bjørnvig, T. (2018). Building outer space: LEGO and the conquest of the beyond in the 1970s. in limiting outer space (pp. 155-182). Palgrave Macmillan, London.
Boulter, E., Colombelli, J., Henriques, R., & Féral, C. C. (2022). The LEGO® brick road to open science and biotechnology. Trends in Biotechnology.
Fonseca, M. M. G. C. D. (2019). A diversification case study: rebuilding LEGO brick by brick (Doctoral dissertation). Web.
Grogan, P., & de Weck, O. (2019). LEGO product design and manufacturing simulations for engineering design and systems engineering education. ASEE Conferences. Web.
Xiaohan, L. (2020). The influence of innovation strategy on the enterprise: a pedagogical case study of Lego (Doctoral dissertation). Web.