Bargaining power of buyers
The bargaining power of buyers has highly influenced Lego and other relevant educational toy companies. This suggests how toy industry has tried its best to create first-rate relationship with its esteemed customers. Lego has tried to maintain reasonable prices for their services. This has definitely expanded the company's customer base. Also, Lego has several promotions that make their customers to have second thoughts to purchase products from other companies.
The company argues that the large part of making decisions in regard to the prices of their products relies on the suggestions of the clients. This is why Lego's bargaining power of its buyers is gradually increasing. In addition, Lego's bargaining power of buyers also affects the company's profits in the industry. However, cutting down of prices will improve the company's quality services and products. This implies that the clients of Lego Company will play a major role in the pricing of the products. Therefore, Lego creates adequate opportunities for their esteemed clients in the right prices for their products.