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Lego Supply Chain Management

In: Business and Management

Submitted By laramu
Words 5492
Pages 22
Introduction & Company Overview

Lego is the definition of the household name. The little brick has made itself an essential part of childhood around the world. The Lego Company, a multinational corporation was founded in 1932 in Jutland, Denmark. By 2009, it became the fifth largest manufacturer of toys by sales volume. The company had a workforce of over 7000, and was selling its products in over 130 countries.
The core idea behind LEGO is to develop a line of marketing toys and accessories in the form of interlocking plastic bricks. Because plastic became readily available following the Second World War, Lego purchased its first plastic injection-molding machine in 1947. The plastic version of the Lego brick was born and patented in 1958. Modern bricks we still see today are comparable with ones made in the 1950s.
During the 1970’s the foundation of the company’s manufacturing facilities and research and development department were established to keep the manufacturing methods up to date. A LEGO production plant was opened in Enfield, Connecticut in the United States. This growth enabled The LEGO Group to continue expanding their product and by 2007 divide their product line into six product segments including pre-school products, creative building, play themes, licensed products, Lego NXT, and LEGO Education.
Fortune Magazine and the British Association of Toy Retailers named the Lego Group Company’s iconic brick the “Toy of the Century.” It was clear that the brand name would forever be connected to their signature brick.

A Changing Market

The 1990s saw a huge change in Lego’s primary target consumer patterns. With growing technological trends came new psychological trends, the most important of which was called the “kids getting older younger” phenomenon (Hatch and Schultz, 2008). Computer and video games were becoming exceedingly popular....

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