Some of the core values of the Lego company include Imagination, Creativity, Caring, Learning, and Quality. The company’s sustainable competitive advantage is based on its founding principles of transparency, integrity, worker rights, well-being, and caring for the environment. Lego’s marketing strategies include paying close attention to all the Ps of the marketing model. Having a sufficient number of distribution centers across the globe, the company manages to cut the costs of logistics and ensure the global flow of goods and information. Place strategy also allows Lego to use promotion strategies more efficiently by advertising to a broader range of target audiences. Compared to similar products in the category, Lego’s value-based pricing presents a number of essential advantages, which include improving the quality of the company’s products and promoting customer loyalty.
The main ethical dilemma that is a challenge for the Lego company is the fact that its products do not biodegrade rapidly, which has a negative environmental impact. This is likely to result in customer complaints in the future, which poses particular risks for the company. Lego has developed goals and strategies to address this issue and become sustainable by 2030. Ethical decision-making tools that Lego management uses to achieve its environmental sustainability goals include setting ethical priorities and establishing partnerships that would support and enforce those priorities.
However, the company’s product is not the only factor that can be considered an environmental issue. Another major problem is the packaging: most of the Lego bricks and other parts are sold in single-use plastic bags. Finally, some of the manufacturing processes can also prevent the company from moving forwards in terms of reducing its environmental footprint. It can be argued that Lego will need to introduce additional changes to its factories and distribution centers, such as solar panels and LED lighting.