Why may the good reputation contribute to the company’s popularity?
This good reputation may encourage new consumers to try out Lego over competitors as competitors might not be seen as environmentally friendly. It will also encourage old existing customers of Lego to stay will Lego as customers are unlikely to leave a company which is so environmentally friendly and caring. It might also create brand loyalty as consumers know by buying products from Lego they are investing in a company that is recognised as being environmentally friendly and therefore they might come back and continually buy from them. This overall could result in Lego having a bigger market share and may secure their position as a market leader.
However not only are they reducing their own CO2 but they also have a policy in place to help their suppliers reduce their CO2. This policy is the Engage To Reduce programme. This programme is about suppliers tracking and reporting the amount of CO2 they produce and reporting it to Lego so they can help reduce the amount of CO2 the suppliers produce. The programme aims to include 80% of suppliers within the next three years. This programme is good for Lego as it Gives them a competitive edge as the public not only see that Lego is caring for the environment by further encouraging Co2 reduction but is also shows that Lego cares about its business partners as they are trying to help them. This can give Lego an even better reputation and may further their competitive edge.