Lego Case Study Essay

1025 Words Oct 22nd, 2012 5 Pages
Lego case study

1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?

Ever since LEGO started experiencing double digit annual sales growth, (by launching new toy games, branded theme parks, entering the video game sector, introducing mobile applications, introducing toys for girls, etc.) they realized they needed a model that was standardized, modular and scalable. Hence, allowing them to expand to new markets in a less amount of time. They already had a decently established market in USA and UK; they were looking for an expansion in other countries as well. This model had to tackle major issues like scalability challenges, employee
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The IBM technologies offered high business flexibilities by their virtualization technologies that delivered high utilization factors and the ability to expand partitions or move workload easily. Thus, this is how the Information Systems and the organization design changes implemented by Knudstorp were aligned with the changes in business strategy.

Ref: http://www-01.ibm.com/software/success/cssdb.nsf/CS/STRD-85KGS6?OpenDocument

2. Which of the generic strategies does LEGO appear to be using based on this case? Provide support for your choice.

The generic strategies used by LEGO (according to me) were:

• Growth strategy

• Product differentiation strategy

• Corporate strategy

Growth strategy: With the help of growth strategy, LEGO introduced new toys in the market. Initially LEGO was something that boys liked playing with but Knudstorp introduced LEGO for girls thus targeting girl child audience which increased his market. Not only this, they also entered the video game sector by making virtual games after collaborating with Sony (which was ruling the gaming console market at that point of time). Later, they started making figures with famous characters from Hollywood movies (Star wars, Batman, The Avengers, etc.).

Product differentiation strategy: Lego was facing stiff competition from its Canadian rival Mega Blocks. They used the product

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