Lego Case Study

1495 Words Apr 11th, 2013 6 Pages
Lego Case Study

Profit for the year
The LEGO Group’s profit for the year amounted to DKK 5,613 million in 2012 against DKK 4,160 million in 2011, which is a higher increase than expected at the beginning of the year.
The very positive results are first and foremost related to the continued successful innovation of the product portfolio. As new products make up approximately 60% of the total sales each year, a highly innovative and consumer oriented devel¬opment process is key to continued success.
Furthermore, the company’s operating model, and the strategy of manufacturing close to the markets, ensures a constant focus on optimisation and improvement, while securing end to end col¬laboration to deliver against customer
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Through own online channels and brand retail stores, direct sales to consumers, accounting for some 10% of the LEGO Group’s total sales, also saw considerable growth in 2012.
Finally, the LEGO Group’s sale of products to the educational sector continued its strong growth from the previous year; however, from a relatively small base.
Thanks to the growth generated during the year, the LEGO Group’s global market share of the toy industry at the end of 2012 amounts to approximately 8.6% up from 7.1% in 2011.
Expectations for 2013
Global economic developments are expected to continue to impact the market for traditional toys. Economic forecasts project a continued difficult economic environment in both Western and Southern Europe and in North America, while Asia and parts of Eastern Europe are ex-pected to continue robust growth.
Based on the LEGO Group’s good momentum at the end of 2012, continued sales growth is expect¬ed in 2013. However, the economic challenges in many European and North American markets are expected to result in lower growth rates for the company than achieved in recent years.
The LEGO Group expects satisfactory resultsfor 2013.


An important condition for the continued success of the LEGO Group is the continuous development of the skills of LEGO employees. Therefore, both talent development and general competence development are very important elements of the

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