Product Management and Lego

1313 Words Aug 17th, 2013 6 Pages
Lego Case Study for
ISM class 5014
How did the information systems and organization diging changes implemented by Knundstorp align with the changes in business strategy.
The Lego Cast Study is about how the toy company has been affected by the rapid and vast change in the way children play with toys and their preference of the same. Historically, Lego’s have been a top rated toy for children and when that quickly changed Lego was not expecting it and furthermore not prepared. The company began to lose money, “by 2004, the company found itself close to extinction, losing $1 million a day.” (Saunders & Pearlson , 2013) A new CEO, Jorgen Vig Knudstorp, was hired in an effort to bring the company back to its feet and the Lego toys back
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This allowed Lego to better serve customers by enhancing their overtaxed order management and fulfillment systems. (Pearlson & Saunders)
At first glance many would discount the idea that Lego deployed a strategy of hyper competition. However, when we consider some of the characteristics of hyper competition, such as profit maximization, emphasis on customer satisfaction, and the ability to dynamically adjust allocation of organizational resources, we see that Lego did adopt a hypercompetitive strategy.
4. What advise would you give Knudstorp to keep Lego competitive, growing and relevant?
I think Knudstorp did an amazing job with coming into Lego and taking a failing business to a successful one by building a block style work environment. He made standards which the employees were to follow which allowed them more creative freedom and incentives to want to improve upon the great quality of their products. One suggestion I would give Knudstorp would be to spend more time focusing on his competition and to see what Lego could do to model what has worked for their company and how it would fit in best with Lego. Mattel is Lego’s biggest competition in the market place. Mattel has advanced in the market place due to their new-product development effort. Toy developers are encouraged to think globally from
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