Lego case study Essay

Indeed, brick by brick, the LEGO Group became influential in the toy industry. These bricks can refer to their business strategies and how they maintain their status in the toy industry. Their “bricks” have helped them influence other toy companies like Mattel Inc. and Zhongyue Industry Company to sell educational toys and bricks. Furthermore, they also influenced their customers to buy their toys, despite the rise of more advanced

There was the change in the business strategy in the company that was brought up by the new CEO. The strategy was to survive, cut costs, sell businesses, generate cash and ignore the dash for the growth in the immediate future. Lego was known for the traditional blocks and components that will allow children to build anything with their imagination. The business strategy was to broaden the Lego products for the other customer segments. They created the

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.

The Lego Group tried to catch up the market trends during the period, but they ignored that the industry total profit pool decreased by 50% Between 1999 and 2003. It's naturally for players to reduce mass production and focus on core competency. However, the Lego Group invested significantly in expansion not only in brick-based product lines, but also beyond the brick. The expansion was not focusing on its core competency.

The company, Lego was hacked and of course very disturbed by this, however, they discovered these hackers were lego fans and could actually add value to their consumers and the business as a whole. working with hackers who had attacked their systems allowed them to develop new products and grow their revenue. It resulted from speaking to the hackers rather than suing them and created what the Lego director of community development Tormod Askildsen described as 'the platform for the 21st

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.

It is still unclear if Marvin Ellison’s turnaround plan will work or fail as miserably as Ron Johnson’s plan. Based on the case answer the following questions. 1. What is your assessment of the individual turnaround strategies CEO Marvin Ellison has put into place? Under former CEO Ron Johnson, J.C. Penney has experienced both a sustained competitive advantage and sustained competitive disadvantage.

It is all about hitting the numbers with Jack Welch. He did this by doing anything to lower the cost and he delivered the growth figures that could only be dreamed by lesser companies. He improved the company’s

Lego President and CEO Jørgen Vig Knudstorp was surprised when Greenpeace activists, in an attempt to stop Arctic drilling, mounted a campaign criticizing his popular toy company for its cobranding relationship with Shell Oil. At first, Knudstorp and his executive team at Lego headquarters in Billund Denmark didn’t quite understand Greenpeace’s criticism. Was the criticism justified? Why didn’t Greenpeace tackle Shell directly? Would Greenpeace’s campaign be taken seriously or would it simply fade away? As Greenpeace beefed up its efforts through social media, Lego’s top management was left wondering how to respond to Greenpeace or whether they should respond at all. And more importantly, executives didn’t know whether Lego should continue its business relationship with Shell.

Prior to the Flextronics offshore outsourcing project, LEGO had a very tight control of all the elements of the value chain. Their production plants were expansive and specialized which, in theory, would create a higher degree of standardization. Their Swiss factories only produced DUPLO toys and Technic products, their Danish factory solely produced LEGO System products, and the U.S. facility focused on American demands, while only 5 to 10 percent of the LEGO Group’s total production was outsourced to Chinese manufacturers.

Advances in the field of information technology and introduction of new hi-tech form of entertainment such as tablets and gaming consoles had left Lego trailing in the entertainment field. Jorgen Vig Knudstorp was appointed as the CEO to revamp the company’s business process, organization structure and information systems. Knudstorp was quick to act and first made changes in the company’s production process. He encouraged designers to use the unused components in development of new products and design, thus reducing the number of unused

3. State two SMART goals for GM based on the case. Are these goals attainable? Discuss.

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.).

Today the LEGO corporation organization’s current state, is having its product sold all over the world. LEGO created a digital world where consumers can design their own designs. Then LEGO has the capabilities to ship exactly what the customer is asking for to countries all around the world. Along with many different product ines to attract the attention of many young consumers, there are are also interactive games and learning activites that the consumers can get involved with. The Company is still privately held with the CEO Kjeld Kirk Kristiansen of Billund, Denmark a net worth of over 8 billion. LEGO created a brand name through the use of their

A couple of interesting things occurred to Lego in its development during the1940s. Denmark was occupied by the Germans and forced Godtfred Kirk Christiansen, who was planning to study in Germany, to instead become a manager at LEGO. In 1955 Godtfred demonstrated the new product at a toy fair in Nuremberg Germany, receiving negative reactions. Before developing a market analysis department in 1959,the stud-and-tube coupling system that we see in every brick to this day becomes patented in 1958, the same year Ole passed away, granting Godtfred as the new owner of the company.