Chapter 3 EVALUATING A COMPANY'S EXTERNAL ENVIRONMENT The Lego Group has undergone quite a few dramatic strategic changes throughout its fascinating history. Since change remains a singular constant in the business world, Lego's ability to adapt has proven vital to the company's continued survival. From its humble beginnings as a manufacturer of Automatic Binding Bricks," Lego has undergone multiple iterations throughout the years. The company has achieved great successes with its invention of the iconic minifigure, the signing of lucrative licensing deals, the creation of original intellectual properties, and the firm's expansion into multiple forms of media such as movies and videogames. Lego has consistently leveraged its innovation in order to support and maintain its core business even when the firm's prospects within the ever-changing toy industry, at times, appeared bleak. Most recently, Lego has undertaken ambitious environmental sustainability initiatives that pose a significant challenge as the organization attempts to break the mold and lead the toy industry through Lego's adoption of green goals. For this assignment, imagine that Lego has hired you as a strategic consultant. First, perform a complete and thorough Five Forces analysis of the toy industry - with an eye to the future - that would assist Lego's top executives in their efforts to plan the firm's strategy for the next five to ten years. Include in your response what you believe are the most noteworthy opportunities and threats facing incumbent firms (those firms, such as Lego, already competing within the toy industry) and the most noteworthy opportunities and threats facing new entrants (those firms contemplating competing within the toy industry) (50 points). Then, provide the Lego leadership team with a strategic recommendation pertaining to each one of the Five Forces. Support all five of your recommendations with well-reasoned justification (50 points). Chapter 3 EVALUATING A COMPANY'S EXTERNAL ENVIRONMENT The Lego Group has undergone quite a few dramatic strategic changes throughout its fascinating history. Since change remains a singular constant in the business world, Lego's ability to adapt has proven vital to the company's continued survival. From its humble beginnings as a manufacturer of Automatic Binding Bricks," Lego has undergone multiple iterations throughout the years. The company has achieved great successes with its invention of the iconic minifigure, the signing of lucrative licensing deals, the creation of original intellectual properties, and the firm's expansion into multiple forms of media such as movies and videogames. Lego has consistently leveraged its innovation in order to support and maintain its core business even when the firm's prospects within the ever-changing toy industry, at times, appeared bleak. Most recently, Lego has undertaken ambitious environmental sustainability initiatives that pose a significant challenge as the organization attempts to break the mold and lead the toy industry through Lego's adoption of green goals. For this assignment, imagine that Lego has hired you as a strategic consultant. First, perform a complete and thorough Five Forces analysis of the toy industry - with an eye to the future - that would assist Lego's top executives in their efforts to plan the firm's strategy for the next five to ten years. Include in your response what you believe are the most noteworthy opportunities and threats facing incumbent firms (those firms, such as Lego, already competing within the toy industry) and the most noteworthy opportunities and threats facing new entrants (those firms contemplating competing within the toy industry) (50 points). Then, provide the Lego leadership team with a strategic recommendation pertaining to each one of the Five Forces. Support all five of your recommendations with well-reasoned justification (50 points)