Hi i need help with paraphrasing! I need the following two small tables to be paraphrased. That's all :D in the same format
PESTEL analysis:
Definition | Identify/Reason | Strategy | |
Political | These factors verify the extent to that a government might influence the economy or a precise trade. | Fall of Berlin Wall. Millions of Eastern Europeans eager to get their hands on Western Products Boost In Demand | Lego should properly forecast the demand and preferences of new customer population. Plan and produce according to forecasts and customer preferences in order capture the potential business and be benefitted from the opportunity |
Economical | These factors are determinants of associate degree economy’s performance that directly impacts a corporation and have ringing long run effects. | Toymakers increasingly shifting their production to Asia where the labor is inexpensive Due to declining birth rate in core markets house hold spending on toys declined and hence the profit pool shrunk. | Due to its in house production, Lego is bearing higher production costs than the industry. Lego should focus on outsourcing their production functions to some Asian country where cheaper resource like labor are available. In this way Lego will be able to cut costs and maximize profits. |
Social | These factors scrutinize the social setting of the market, and gauge determinants like cultural trends, demographics, and population analytics. | Children have more after school activities and less unscheduled time to play than in the past Children have given up traditional toys for video games Birth rates in the core markets of LEGO (Western Europe and North America) Declined | As the social trends are favoring tech toys, Lego should focus on producing tech embedded toys to capture the business. Considering the children having short time to play, Lego should focus on producing toys that take less time to setup and provide more time to enjoy the end leisure Lego should diversify in those countries that shows growth in birth rate. |
Technological | These factors pertain to innovations in technology which will have an effect on the operations of the trade and therefore the market favorably or unfavorably | Shift from traditional toys to video games Demand shifted to toys coming with technology inside them or in the form of toys coming with access codes to online worlds Collaboration with MIT lab on robots | Product life cycle is declining, Lego should shift its focus on technology that should produce products with short life cycle, high value in a low cost Produce Tech Embedded toys Provide access to extra tech toy solutions along with basic Lego Product, like access to online video game |
Environmental | These factors embody all those who influence or are determined by the encompassing setting. | LEGO’s basic raw material in making its Blocks. Plastic is dangerous for health of our environment Ban on plastic by various countries can significantly affect business of LEGO | Lego should shift its focus from reliance on plastic, and look for other ecofriendly and sustainable strategic solution that they can use a raw material for their production |
Legal | These factors have each external and internal sides. There are sure laws that have an effect on the business setting during sure country whereas there are sure policies that firms maintain for themselves. So that they incorporate each of those sides. | Licensing of Brands Safety of right to intellectual property | Theft of intellectual property is a problem for Lego. Lego should enter into proper legal licensing agreement before introducing any brand theme based toy like Star wars. |
Porter’s Five Forces Analysis
Forces | Who they are | Level of Threat/Bargaining Power | Reason | Strategy |
Threat of New Entrants | Potential entrepreneur aspiring to enter into toy industry and be new competitor | Low | Initial Capital investment is very high Existence of strong competitors with strong brand image in the market Products are differentiated | Maintain quality and brand image Stay competitive |
Bargaining Power of Customers | People who buy products of LEGO Retailers (Walmart) | High | Many substitutes in the market Chinese Imitated products available in the global market Retailers have high bargaining power over ordering and displaying the product | Patents and licensing |
Bargaining Power of suppliers | Raw Material Supplier Chinese subcontractors Licensing | High | It is high because they are licensing the products so the one who they are giving them licenses they can switch to other toy makers because of high rivalry in toy manufacturing industry. | They should diversify in getting licenses from different businesses and make good relationship with them. |
Threat of Substitutes | High | Video games Preference changes | Tech embedded toys | |
Intensity of Rivalry | Low as a brick toy manufacturer High as a toy manufacturer in general | In Brick toy market competitors are, Best-Lock from Hong Kong and Mega Brands from Canada, they compete with Lego on cost, but they are comparatively small and very least known brands so they don’t create strong rivalry In the toy industry as a whole, there is major competition. Big names like Mattel and Hasbro lead the industry so rivalry in the industry is very high Slowly growing market High exit barriers High costs associated with going out of the business | Improve the cost structure and focus on cost cutting Focus on overall quality of the product to maintain the brand image in order to compete successfully with other brands Continuous improvement and continuous innovation is the key to success. |