A Lego Case Study How Did The Company Adapt In An Ever Changing World

- LEGO expanded into licensing, gaining them a lot of exposure. Example, LEGO is the one of the very first brand come up with children movie to fit their product such as characters of heroes Star Wars, Minecraft,Emmet and Wyldstyle, will be the stars of a video game, as well as being sold in traditional retail stores in toy kits is now thoroughly appealing to all the kids and

In this report, the association, Lego, its image and present business sector standing have been inspected in subtle element. Lego (adapted and trademarked as LEGO) is a line of plastic development toys that are made by The Lego Group, a secretly held organization situated in Billund, Denmark. The organization's lead item, Lego, comprises of vivid interlocking plastic blocks going with a variety of apparatuses, puppets called minifigures, and different parts. Lego pieces can be collected and associated from numerous points of view, to develop protests, for example, vehicles, structures, and working robots. Anything developed can then be dismembered once more, and the pieces used to make different articles.

LEGO, today, has become a household name but it hasn't always been that successful. Throughout the years, it has survived and thrived against all odds, repeatedly.

1. From early 1990s to 2004, the Lego Group, a long successful toymaker with a world-renowned brand, fell into the edge of bankruptcy. Compared with the highest revenue in 1999, the revenue in 2014 decreased by 35.6% while the net profit was negative, seven times less than that in 1999, the lowest in the past ten years. Its net profit margin and ROE were also the lowest. The gross margin and inventory turnover were all lower than its competitors. The strategic moves in the two main periods “growth period that wasn’t” (1993-1998) and the “fix that wasn’t” (1999-2004) lead to its poor performance.

Lego Corp was established in 1932 by founder Ole Kirk Kristiansen. With just 10 employees, they start crafting wooden construction toys. The most famous of these were the wooden duck. As the popularity of plastic toys rose in the mid-1950s, the company did away with wooden toys and started focusing on manufacturing plastic automatic binding blocks. As early as the beginning of the company, their motto was “Only the best is good enough.” High quality and safe products have been the focal point of LEGO Group for decades. Over the years LEGO Group has kept its word on that motto and has supplied millions of families with creative toys that last.

When I was still in the single digits, a fascination budded within me with the discovery of Legos. Although some people believe that the true purpose of Legos is to act as feet destroyers, I saw something greater. A mountain of rigid, stubby pieces could be mashed together to create an object? I first followed instruction manuals and then ventured out on my own accord to create whatever I wanted. I built, demolished, rebuilt, and stored creations that I loved, including cars,

The building blocks of our childhood or stepping stones to the future of creativity? Lego's were a foundation of understanding how the rest of world “fit” into place, just like a Lego. Whether it was building spaceships out of mismatched pieces, or replicating fancy models of cars, to making fantasy scenes occur with Lego figurines each experience cultivated my creativity. Lego's are the reason I’m an artist today.

Legos: ancient little colorful pieces of plastic that have been around for over eight decades. Even though they have been present, unchanged, and accessible for so long, below the surface of simple construction, they hold the ability to prepare one for the real world.

Its high-energy exploits should go down well enough with the younger end of Lego's cinema audience, but its story is formulaic and its jokes (apart from a brilliant feline cameo) spring no surprises. Just as Toy Story did by featuring an owner of the toys, it reminds us that these films are about play and imagination. Yes, they're also effectively feature-length adverts for Lego, but this is rampant capitalism at its most arch and entertaining.

The high brand equity of Lego and other well established organizations offer another disadvantage to new entrants. Collaborations with the film industry helped Lego sustain market share and increase sales volume in the toy industry through franchise agreements on Harry Potter and Star Wars.

As their name and ideal, Lego has been beloved by the children as well as the parents for decades. Not only as plastic toy bricks, but also effective educational tools, the LEGO Company enjoyed continuous growth and broaden the global brand value. The LEGO brand moved to third place in 2002/2003 with only Coca-cola and Kellogg having greater respect among families with children. Even though as the overall toy market faces challenges, LEGO’s revenue and profits are increasing rapidly, especially since 2005. This profitability didn’t change even in the current recession in the global market. The LEGO Group achieved record-breaking profits in

The LEGO Group was founded in 1932 and has come a long way in almost 80 years. With such global success in their brand, it was easy to choose an organization to interview that would provide us with the history and tools for analyzation of compensation plans. Below is the mission statement that can be found on the LEGO website:

The company had remained a family run firm for most of it`s history and by Kjeld reinforcing his responsibility as CEO, it sent a clear signal that the family was behind the company. By divesting in LEGOLAND parks, writing-off other assets and simplifying the corporate structure, this allowed the LEGO Group to focus on it`s core business. Attention was directed towards resolving distribution problems and getting closer to retailers in order to understand their sales to end customers. Focus was placed on cutting costs and the entire procurement process was revised, resulting in fewer suppliers and significant cost reductions. Supply chain management philosophy changed from outsourced management, to in-house management. This strategy allowed for flexibility and the ability to react to short-term changes in customer demand as a priority over cost (Johnson, Whittington and Scholes, 2011).

We are a great team, who produce the highest quality toys in the country and we want to be the Number1 at educational toys in Europe. Our vision is being the Number1 for all kind of toys in the world.

LEGO’s major threat can be seen in the varying nature of the market in the run up until 2004. Where it has remained the market leader of construction toys, it should be taken into account that LEGO’s traditional toys have been widely replaced by substitutes in the electronic sector. Despite such threats to the core product offering in this trend in the run up to 2004, the company could turn around this situation and use this threat as an opportunity to diversify in markets such as games and films as well as the development of non-traditional LEGO products. In the years preceding 2004, LEGO already had practice with diversification into direct retails with its very own LEGO stores and the launch of the ‘LEGO Land’ amusement parks. However this signifies as a substantial opportunity for further development.