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Gcse buisness studies help pls!

Answer this question below, any help would be fab!
LEGO® is the world’s biggest toy manufacturer and has a mission ‘to inspire and develop the builders of tomorrow’. The company has had a huge impact on the knowledge and understanding of the way children learn and the enormous value of play in helping children learn the essentials skills for modern life. Over time, LEGO® has evolved from being just a toy manufacturer to becoming very important in the development of children all over the world. It has plans to expand into markets in China and Malaysia as these countries have become wealthier, meaning consumers can now afford LEGO® toys. In 2015, the aims and objectives of the company include the following: 1. Zero product recalls 2. To be ranked in the top 10 companies for employee safety 3. To support the learning of 101 million children 4. To use 100% renewable energy by 2020 5. Adopt a zero-waste mindset during manufacture and distribution

Analyse the advantage to Lego of expanding into markets in China and Malaysia (6)

Reply 1

Heroic_

Original post by SaraPatel07

Answer this question below, any help would be fab!
Analyse the advantage to Lego of expanding into markets in China and Malaysia (6)

I'm not going to complete the essay for you, but here are some ideas;

1) Massive potential audience in a developing markets - more disposable income, more likely to buy luxury items like Lego that were once not available.

2) Ability to capitalise on business strengths and create barriers to entry, hindering future competition in the regions. Lego have established supply chains, distribution networks and brand recognition across the globe. This would be extremely beneficial in emerging markets as they could establish high barriers to entry for other competitors; lower prices, partnerships with strong brands like Disney (they already have this, unlikely other competitors could achieve them), higher perceived quality and reliability.

3) Extension strategy for mature business to continue growth (delivering value for shareholders) - Long established companies like Lego could be seen as being at the 'maturity' stage of the business life cycle. They use extension strategies such as new products or services to extend the business life, metaphorically speaking, to avoid stagnation of revenue/market share. Moving to a new market would be a great extension strategy, if it were successful would result in years of growth potential.

In GCSE, i believe the preferred structure is PEE. Point, Explain, Example. Try to format your answers this way and don't copy the above word for word. It won't give you great marks.