...LEGO as we know it today first came into being in 1949 when Godtfred Kirk Christiansen used a “new” material – plastic – to create simple four and eight stud building blocks. Today, LEGO has turned into one of the most famous toy brands in the world. The aim of this case study essay is to asses the macro and micro environment in which LEGO is performing today. Micro Marketing Environment The micro marketing environment is defined as “the forces close to the company that affect its ability to serve its customers – the company, market channel, firms, customer markets, competitors and publics, which combine to make the firm’s value delivery system” (Kotler, Wong, Saunders and Armstrong, 2005) One of the most notable things concerning the micro environment of LEGO is that it is viewed as a strong brand. It been part of the toy market for so long, that grandparents and parents can remember playing with the toy as a child, and so often feel they have a relationship or bond with the product. The brand has also infiltrated many markets world-wide, and its fame is instrumental in its continued success. The case study states, it’s the only European company to enter the worlds Top Ten toy manufacturers. The product also has a unique selling point. The toy of LEGO is aiming to capture a creative imagination and also enable it to stand out in the market of dolls, cars, computer games etc. It is promoted as a “system of play”, which can be a strong selling point when trying to compete...
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...deals with The LEGO House, an experience venue LEGO built by The LEGO Foundation. The research design is using positivism paradigm with qualitative interviews in an inductive approach where the design science is used with a Socio-Technical perspective (Bækgaard, 2011). 1.1.1 Stakeholders To make the problem background and problem formulation clear a simple organization chart has been developed. Table XX authors creation The LEGO Foundation has 100 % ownership of The LEGO House. The LEGO Group has a department called Corporate IT marketing. Corporate IT marketing from The LEGO Group is hired to find a...
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...| Lego: One More Brick In The Wall? | | | 1. How has the mission definition of Lego evolved overtime? Is it relevant today? How does this definition shape Lego's strategy? First we need to define mission. Mission is the purpose of the company it should be market-oriented, meaningful and motivating. They shouldn’t simply describe what the company sells; they should “emphasize the company’s strengths in the marketplace“. Since the beginning of Lego the mission was to produce quality toys. Like many other companies, they simply described what they were selling instead of reveling their strengths and motivations. In 2004 Kjeld Kirk Kristiansen stepped down as chief executive and hired Jorgen Knudstorp to run the family company. One of the first things Jorgen did was changing the mission to one that was truly oriented “To inspire and develop the builders of tomorrow” which they explained was driven by their “ultimate purpose is to inspire and develop children to think creatively, reason systematically and release their potential to shape their own future – experiencing the endless human possibility“. Nowadays this change revels that not only they were able of distinguish themselves from the other competitors but also create a brand that is known by is premium quality and creativity. 2. Prior to 2004 was Lego focused on its products or its marketplace? By analyzing the case we see that 2004 was...
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...Lego is one of the multinational organizations that is operating its business in more than 130 countries. It is the 6th largest producer of children toys in the world. With the increase of competition and changing technology Lego had huge losses in 2004, the company suffered a situation of bankruptcy. Then as an organizational change to put the organization back on track Jorgen Vig Knudstorp has been appointed as the CEO of Lego. The main challenges for Knudstorp is to provide a good service to its unhappy customers and to keep the production team on track. But its innovative strategy has changed the face of the organization, which made it one of the top producer of toys. The company implemented and organization change in its structure and culture to achieve its goals. Some of its organizational changes include making new innovative products and making changes to existing products to meet the needs of the customers. Lego has also focused on the strengthening customer relationship and maintain a close contact with its customers which can help in knowing their needs better. A perfect example of this is Lego.com in which customers of all ages can experience the values and ideas of Lego through activities and games. Focusing on the requirements of the customers has made Lego a service driven organization and helped in gaining a competitive advantage in the market. It has targeted all channels to market to reach its customers like selling its products directly to the customers without...
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...Principles of Marketing Management – Case Study of LEGO Chapters: • Introduction ------------------------------------------------ 3 • Company Background ----------------------------------- 4 • Marketing Focus------------------------------------------- 5 • SWOT Analysis -------------------------------------------- 6 – 7 • Time Series Analysis ------------------------------------- - 8 – 9 • Product Analysis ------------------------------------------ -10 – 11 • Suggested Marketing Plan --------------------------------12 – 13 • Conclusion --------------------------------------------------- 14 • References --------------------------------------------------- 15 INTRODUCTION – For a company that has firmly established its foothold for the last 75 years, developing a futuristic three – year marketing plan involves critically analyzing the current marketing strategies and stating new strategies to be implied in the next few years. In this paper, four current marketing development plans namely SWOT Analysis, Time Series Analysis, and Market Product Analysis are dealt in a detailed way. Awarded the “Toy of the Century” at the end of the millennia, LEGO Group has nurtured generations of children and pre-teens with its creative and learning construction blocks. Over the years, LEGO has developed newer version of...
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...S |Subject Name |Relationship Marketing | |Week |2 (Tutorial Questions) | |Topic |The Nature and Characteristics of Relationship Marketing | Part A: Short Answers 1. Explain the factors that may influence the organisation in adopting RM. 2. Suggest for a company with which you are familiar. Where would you place the company on the hypothetical RM/TM continuum? What factors led to your decision to place them at this point on the continuum? 3. What are the differences between Relationship Marketing and Transactional Marketing? 4. What effect do switching costs have on a relationship? 5. Explain the association between risk, salience and emotion. Part B: Case Study Lego is one of the world’s largest toy manufacturers. It is estimated that more than 400 million children and adults play with Lego each year. However, despite being voted the nation’s favourite toy for a number of successive years and a YouGov pool into the top ten favourite toys of the past century showing Lego as the clear winner (ahead of computer games, teddy bears, Meccano and train sets!) Lego is in serious financial difficulty! With an annual revenue of over £1 billion and employing around 8000 people...
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...The LEGO Company in Asia 1 2 INTRODUCTION .................................................................................................................. 3 THE LEGO GROUP ............................................................................................................. 6 2.1 PRESENTATION ................................................................................................................ 6 2.2 HISTORY ............................................................................................................................ 7 STRUCTURE OF THE PROJECT ..................................................................................... 11 3.1 INTRODUCTORY PART .................................................................................................. 11 3.2 THEORETICAL PART ...................................................................................................... 12 3.3 EMPIRICAL PART ............................................................................................................ 12 3.4 ANALYTICAL PART ......................................................................................................... 13 METHODOLOGY ............................................................................................................... 14 4.1 CHOICE OF THEORY ...................................................................................................... 14 4.2 EMPIRICAL CHOICES .......................................
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...Assignment 1: Individual case analysis report Mahmud Safari (21295746) 1 Individual Case Analysis Report LEGO (A): The Crisis Mahmud Safari 21295746 Assignment 1: Individual case analysis report Mahmud Safari (21295746) 2 Table Of Contents 1.0Introduction 2.0 Analysis of General Environment 2.1 Economic 2.2 Socio-‐Cultural 2.3 Global 2.4 Technological 2.5 Political/Legal 2.6 Demographic 3.0 Analysis of the Industry...
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...! ! ! ! ! ! ! ! ! ! ! ! The LEGO Case Study 2014 ! ! ! ! ! ! ! ! ! ! The A CONTENTS ! ! ! 1! ! 2! ! Introduction! ! ! ! ! 3! ! 4! ! 5! ! 6! ! 7! ! 8! ! Difficult start to the decade 2001.! Signs of Recovery 2002.! Hopes dashed - 2003.! LEGOLAND parks.! LEGO Brand Stores.! The Knudstorp Review.! Financial Focus - the ! Oveson addition. ! Back to basics and the limit to adjacencies. ! ! ! ! 9! ! 10 ! Developing the strategy ! why do we exist? ! 11 ! First the action plan - first ! things first. ! ! 12 ! Summary and Conclusions! ! 13 !Appendices ! ! 13.1 Knudstorp on! ! communication ! ! 13.2 References and slides The A 1 Introduction ! In 2014, LEGO® announced record results. In the financial year 2013, revenues had increased by 10% to 25.4 billion danish krona. Profits before tax were 8.2 billion DKK. The company had once again delivered an impressive operating margin of 33% before tax.! ! In US dollars, the company had achieved $4.5 billion of revenues and profits of $1.5 billion. Revenues had increased from just over $1 billion some seven years earlier. LEGO® had replaced Hasbro to become the largest toy company in the world second only to Mattel. ! ! In just eight years, revenues at the Danish toy manufacturer had tripled. The company had turned around a loss of 2.5 billion krona in the financial years 2003 and 2004 to an operating margin the envy of high tech stocks around the world.! ! ! ! ! The...
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...Case Studies Lego The Danish company Lego is one of the most famous brands in the world when it comes to children’s toys and has grown since it was founded in 1932 into a global business. Its origins lie with Ole Kirk Christiansen, a carpenter from Billund (where the firm is still based) who bought a woodworking business in 1916 and made furniture for local farmers. For various reasons he shifted his production range in the 1930s to make children’s toys and in 1934 named the company ‘Lego’ from the Danish words leg and godt, meaning ‘play well’. His early products - wooden pull toys, piggy banks, cars and trucks – were reasonably successful but a key turning point for the business came in the 1940s when they began making plastic toys including a truck which could be taken apart and re-assembled. In 1949 Lego began producing a set of interlocking bricks (based on an original patent by the UK Kiddicraft company for which they bought the rights) made from cellulose acetate and using an early version of a hollow design with holes and studs. The now familiar Lego bricks appeared on the market in 1953 but were not initially very successful, partly due to poor perceptions amongst consumers and retailers of plastic toys. The key was probably the emergence of the idea of a building system based on interlocking bricks – an idea which took some time to develop and is closely linked to the son of the founder, Godtfred Kirk Christiansen. His discussions with buyers, especially in the USA...
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...Section1 10/21/2013 Case Study #5 – LEGO Discussion Questions: 1. Do you think LEGO should try to compete with more technologically-advanced toys? Why or why not? Yes they should. World has been changing as technologies improved. People needs are expected to be higher to the point where the technocracies are matched. For example, TV gamers had to get together in one game machine to play the game ten years ago. Now days, they are able to match a game through internet without being together. 2. Identify briefly the marketing mix (4Ps) strategies for LEGO. Product Lego is almost unique as a brand in that the positive associations consumers have with it start to form at a very young age, such that when those children become parents themselves, they are very well disposed towards it. This is a huge asset, but also a big responsibility for the brand. It is important to remember that all the activities are generic and therefore could vary between industries. LEGO was among other things, saved by entering into strategic partnerships with companies such as Lucas Arts and Warner Bros, who hold the licenses for Star Wars and Harry Potter respectively. Place A change in any of these factors can create new opportunities or threats, which the organization will have to corporate to create a successful business. Since the LEGO group is a multinational organization then it is important that all relevant countries will be analyzed to give a credible evaluation of the LEGO group’s macroeconomic...
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...Lego Case Study -Avinash Mavireddi 1. After Knudstorp has taken the control of Lego, the first thing he stressed on was the Supply Chain Management. Earlier, the components produced by Lego were primarily used for only one pattern or model. So the prototype designers were asked to use the same blocks for more than one design. This was the first step taken by Knudstorp that resulted in reducing the production of Lego components to almost half of what they were producing before. It also helped in reducing the expenses on the components mold significantly. The new approach has generalized the Lego components and this gave children an unlimited ability to think and create different models and design beyond what they can imagine. On the whole it even widened the range of products that Lego had. Another strategy that Lego employed was to induce the themes of films that were a huge success like Indian Jones and Star Wars. They didn’t stop at this and started to carefully maneuver into the Video games which featured animated Lego cast. All this growth in the company created a pressure on the Information Systems. Order management and fulfillment were the two sectors that were impacted severely and in turn it resulted in missing the customer demands. To overcome this situation, Employee management systems were widened by adding new employees to the stability and growth at many new locations. Product design and development were the other two modules which needs to be concentrated now...
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...Eric Hoffman Professor Rosanne Siemens Thursday, February 5, 2015 TA400 Ch1 Assignment – Case Study 1-1 LEGO 1. How did the information systems and the organization design changes implemented by Knudstorp align with changes in business strategy? The new business strategy was basically “results oriented”…, i.e., to ‘trim the fat’ wherever possible while not only marketing the best product available, but by expanding the range of it as well…and simultaneously expanding the business reach (and scope) of the Lego Brand. To that end, the company organization was drastically altered, ‘trimming the fat’ there by eliminating all personnel who were not ‘down with the new program’; by hiring ‘fresh blood’ in the design and engineering departments; and by implementing an “incentive-based” payroll structure. Finally, the IS structure, (as well as the Organizational structure), has been ‘modularized’ so that it can be almost instantly ‘reconstructed’, (much like the Lego toys themselves), in order to meet dynamically developing needs and goals. 2. Which of the generic strategies does Lego appear to be using based on this case? Provide support for your choice. Lego is primarily ‘focused’ on the “Differentiation” model, (pun intended), with flavors of “Cost Leadership” stirred into the pot as well. The latter comes into play via directing designers to ‘reuse’ nearly half of the basic building blocks in their designs, saving the expense of producing (and thus eliminating)...
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...Assessment – 2 Case Study Report Rahul Krishnasamy Student Id – 1838804 TABLE OF CONTENTS 1. Executive Summary 2. Introduction 3. Lego’s Turnaround and business model 4.1 Bringing Back the Bricks 4.2 Improving Quality and Logistics 4.3 Lego Turnover 4. Conclusion 5. Recommendations 6. References Executive summary: The purpose of this report is to analyze the Lego’s turnaround and business model in light of its competitive position from approximately 2003 – 2013. This report will includes the aspects such as new product launch strategies, new collaborations which contributed to the creation of superior value and changes to the business model. It also provides the solutions for Lego’s continues competitive success and recommendations for the future based on what will sustain competitive advantage. Introduction: In 2003, the Lego group was about to bankrupt, as many of its innovative efforts like Clikits crafts sets which were introduced for girls, theme parks and Galidor, an action figure supported by the television show were all unprofitable and were failed outright. The Lego group had a loss of over 400 million dollars on its annual sales with just over 1 billion dollars. The Lego group...
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...organization design changes implemented by Knudstorp align with the changes in business strategy? Lego toys were outdated in the present entertainment world with the arrival of modern entertainment devices such as PlayStation etc. In 2004, Jorgen Vig Knudstorp was appointed as the new CEO to overcome the company's failure. He devised strategies in changing organization design and information systems which helped the company see profits within a span of five years. He encouraged architects to reuse components in new products which helped in sparing huge costs to the company. They created product strategy for adults and designed a line of Lego's aimed at girls thus attracting new customer segments. With a strategy to broaden their products they created products based on movies and also created animated Lego characters based on Hollywood movies. They engaged with online communities and blogs featuring Lego creations and embraced the communities who believed Lego as a way to create art, rather than simply building a toy( (keri E Pearlson)). With the competition very rapid in the market and to obtain profits, the culture within the organization changed a lot. Previously, the organization focused more on innovation and creativity but that changed when knudstorp made clear that results i:e profits was all that mattered. There had been a drastic change in the organizational structure too. Lego switched its employee pay structure and incentives were offered for appropriate product innovation...
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