What are Lego's most valuable resources and capabilities at the turn of the century?

The landscape of the current toy market with the proliferation of electronics toys and games is constantly changing. Children are now growing up in an entertainment economy saturated with play systems which are outcome driven . However, Lego, a traditional toy maker has stick to its core values of creativity, imagination, learning, fun and quality in it products. The threat of substitutes as a result of the many varying products means that children have more options …

…which the company can achieve competitive advantage . Through this endeavour, Lego can utilize its strong brand equity and core business as a weapon to tap into the market share of Nintendo, Sega and Sony who are the leaders in the video game market segment. Extensive research and development projects already in place can only further Lego's ability to expand out of the traditional construction toy sector and into other multimedia segments of the toy market.