QUESTIONS

1. Why did LEGO face bancruptcy in the early 2000s? In your reasoning, focus on both external and internal factors.

2. What is LEGO's core competency? Explain.

3. Apply VRIO matrix to show how LEGO leveraged its core competence into existing and new markets over the past decade.

4. In terms of revenue growth, LEGO experienced a competitive advantage over both Hasbro and Mattel since 2007 because it grew much faster. What explains LEGO's competitive advantage?

5. What must LEGO do to sustain its competitive advantage in the future? One avenue to tackle this question is to thnik about diversification, both along products but also geography. Another avenue is partnerships such as strategic alliances or even acquisitions. What lessons from LEGO's past should guide its future diversification?