BU481 Lecture Notes - Lecture 23: Premium Pricing, Play-Doh
Document Summary
External: global toy industry, 83b revenue, building set 13 , concentrated. Porters: how attractive is the industry: take away, good industry if you already existing in it and you are a big four, hard for small players to take market share if you are already non-existent, licensing agreements, patents. Economic: seasonality winter people will buy it for their kids as gifts, parents relationships with kids with always make them buy toys, recession proof. Social: online and offline toys, electronic, mobile games, network options. Increasing inclusion of technology in products: decreasing cost of manufacturing, online options especially for retail. Lego: internal how are we: 4th largest in the world, 9000 employees, diversification 1949, 3. 7 billion, self-financed, privately held, family firm. Strategic triangle: value proposition, nostalgia, premium pricing, large variety of sets, creativity, hands on compatibility, product market focus, building blocks, video games, theme parks, global, toddler kids adults, goals, retain leadership, large market share (75%)
