Lego Features Of Lego Blocks

That number is a far stretch from $4.5 billion right? Well the Star wars franchise includes much more than just the 6 movies box office totals. The video and DVD sales are about $3 billion 775 million as said by statistic brain. This includes all DVDs and movies from all 6 movies and Star wars the clone wars. The video game sales grossed $2.9 billion. These games range from the oldest super Nintendo games to the newer PlayStation and Xbox games. The book sales have grossed $1.82 billion. This is an example of just 1 of the 23 books my boyfriend alone has, all together there are over 100 books written. The toy sales have grossed 12 billion this includes all collectibles, action figures, and toys such as puzzles, Legos, coloring books, or bobble heads that talk. The last bit is considered “other” which includes licensing, television shows, and merchandise grossed appx. $1.304 billion to date. Merchandise includes Pez despisers, posters, and any other Star Wars affiliated product.

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

The creator and director of Star Wars, George Lucas, was incredibly successful for his movie series, but even more successful for its overall purpose: to sell toys to ten-year old boys. The use of ethos, pathos, and logos are very abundant in this movie. Ethos, Greek for “character”, is anything referring to or relying on the author’s credibility. Pathos, Greek for “emotional”, is anything that makes you feel emotion. Logos, Greek for “word”, is anything that makes you think. By using these he was able to persuade the audience into thinking, feeling, and loving Star Wars, making the audience want to purchase figurines.

Substitutes: High. Fad toys, electronic products, videogames, online activities could easily be substitutes of Lego products.

Operationally, LEGO manufactured a wide range of products (many of which were ephemeral, with a life of 12-18 months), sought to supply retailers large and small in the countries it served, and strived to provide short delivery times. Since demand fluctuations could reach 30%, LEGO had to maintain stocks of products, both completed and work in progress (WIP), in order to meet the customer needs for flexibility and quick delivery. The characteristics of the LEGO operations process in place can be shown in a 4Vs typology diagram:

While observing the set Lucas says that the set is so much better than his set and the movie will make much more money than Star Wars to Lucas’s dismay. Lucas also said “Oh my God, your movie is better than Star Wars! This is gonna be the biggest hit of all time. I can’t believe this set” Lucas said he would trade some earnings with Spielberg. They would each trade 2.5 percent of their movies earnings to each other. Then Spielberg agreed to the bet but actually Star Wars made $775 million at the box office and close encounters only making $304 million. Though Lucas did not lose much money since after the movie he was still a billionaire so there was not a giant hole in his wallet after the bet which surprised Lucas. He was very surprised that Star Wars got almost double the earning of close encounters and now had so much money.

LEGO,  like  most  companies  in  the  toy  industry  are  fighting  to  stay  profitable  in  this

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.

Lego, from the Danish words “leg godt” or play well, was founded by Danish carpenter Ole Kirk Christiansen in 1932 (Herman, 2012). Known for producing iconic studded plastic bricks that were enjoyed by both children and adults, Lego produced more than 30 Lego-based video games and, through licensing agreements, popular Star Wars and Harry Potter Lego sets (Baichtal & Meno, 2011). Lego also sold a series of Arctic sets including an Arctic Base Camp, Arctic Outpost, Arctic Helicrane, Lego Ice Crawler, and Arctic Snowmobile. Those sets sold for $89.99, $49.99, $39.99, $14.99, and $6.99 respectively. Lego’s 2014 film, The Lego Movie, grossed more

Based on the case study Lego appears to be using the Focus strategy. Michael Porter proposed three generic strategies Cost Leadership, Differentiation and Focus. Focus is a strategy where organization focuses on specific niche markets; this may include a particular geographic region or particular segment of customers. Organizations which use this strategy develop their products after having a study of dynamics of the segment and unique needs of customer. Lego before the appointment of the new CEO appear to use the focus strategy as their top priority was always to focus on innovation and creativity with taking profits into consideration. Add to that the case study also mention that Lego used to create products that primarily targeted boys. After the appointment of new CEO Jorgen Vig Knudstorp the company appears to have changed its policy form Focus to Cost-Leadership. Cost-Leadership is a strategy where organizations focus on gaining competitive advantage by offering products and services at the lowest possible price. They achieve this by increasing profits by reducing production cost and other way is to increase market share by reducing the prices of products compared to the competitors. Knudstorp after taking charge of Lego changed their focus on reducing the production

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

In 2002 and beginning of 2003 LEGO struggle with low sales and an increase in their inventory levels due to an intensification of their competitors, adapting their process as LEGO did in the beginning

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

Knudstrop comprehended the necessity for the Information framework and enhanced hierarchical structure. His front line procedure of reusing the modules to fabricate new items went about as rescue, where the module utilization was diminished to 7000 from 13000. Every module cost around 50000 euro, which coordinated in decreased expense for developing. In further new alterations are developed in building up the module with decreased cost, managed quality and enhanced item subjects with current business sector pattern helped LEGO to enhance its money related position in the business sector.

The company LEGO (Appendix 1), was far from the reality when in the year 2000 the famous Bricks were named as ‘the toy of the century’ by Fortune Magazine. the numbers were reflecting a different reality when in 2003 and 2004 the losses were of more than $400m on annual sales of over $1b (Lego case of study 2014).