This document provides an analysis of the operations, marketing, and business strategy of The LEGO Group. It summarizes the company's history, operations, manufacturing process, sales trends, and SWOT analysis. Key recommendations include expanding the LEGO Friends line targeted towards girls, extending e-commerce globally, integrating more augmented and virtual reality, and focusing on emerging markets for future growth. The analysis shows that LEGO is a strong brand but faces challenges from cheaper competitors and new technologies that must be addressed through innovation and strategic changes.
This document provides an overview of Lego's business including its mission, values, history, and various strategic analyses. It includes 10 slides covering different strategic models like PESTLE, Porter's Five Forces, market life cycle, value chain and more. The document analyzes Lego's strengths, weaknesses and provides a SWOT analysis. It also includes confrontation matrices comparing Lego to opportunities like Asia, logistics partners, and threats like trends and competition. The document proposes an international strategy and includes Ansoff's strategic diagnosis model. It concludes with strategic recommendations like expanding into emerging markets and product lines.
LEGO has adapted to shifting consumer demands in the digital age by integrating physical and digital play experiences. Some strategies include launching mobile apps that interact with physical LEGO sets, creating social networks for fans to share creations, and crowdsourcing new product ideas. LEGO also uses data analytics and artificial intelligence to enhance customer experience, develop accessible instructions, and power immersive rides. Further, LEGO partners with other companies and leverages a platform business model to continue engaging fans across physical and digital experiences.
This document provides an overview of the LEGO company, including its history and product evolution. It discusses LEGO's niche as a brick-based construction toy company and outlines its development from the 1930s to present. The document then covers LEGO's product and target market segmentation, branding and advertising strategy, brand extension and pricing approach. It analyzes LEGO's distribution and retail strategy as well as competitors. The document concludes with recommendations for LEGO's future strategies.
The LEGO Group has a long history starting in 1932 when it began as a wooden toy company. It introduced the now famous LEGO brick in 1958. Key events included the introduction of minifigures in 1974, LEGOLAND parks in 1968, and a partnership with MIT in 1984. Today it is the third largest toy manufacturer, earns over $23 billion annually, and produces over 45 billion LEGO bricks per year. The company's strategy is to strengthen its core business and leverage digitalization, while securing innovative processes and involving children in product development. It is owned by the Kirk Kristiansen family and aims to provide LEGO play experiences to as many children as possible around the world.
LEGO has been producing construction toys since 1932 and has grown to become a global brand. Their mission is to inspire creativity in children. They segment their market based on demographics like age, geography, and psychographics like interests. Their main competitors are other construction and creative toys. LEGO differentiates by encouraging learning through play. Their marketing mix includes licensed products, retail stores, theme parks, and social media promotions. Strategic recommendations include expanding girls' offerings, mobile games, localized themes, and leveraging new technologies like AR/VR.
LEGO is a toy manufacturing company established in 1932 in Denmark that is best known for its plastic interlocking bricks. Over the decades it has expanded its product lines, opened LEGOLAND theme parks, and become a global brand. More recently, LEGO has focused on innovative strategies, a focused marketing approach, and improving consumer service to address issues like late and damaged deliveries. It continues working to meet demand through increased production and implementing new ideas to expand into unexplored areas.
The document summarizes the supply chain of Lego products from sourcing raw materials like plastic and rubber, to manufacturing components through molding and painting/decorating, packaging, distribution through a single warehouse in partnership with DHL, and finally reaching end consumers through specialty retail stores, online ordering, and other retailers. It also discusses Lego's rationale for centralizing its supply chain after continual profit losses in the late 1990s/early 2000s, and some difficulties in implementing the new centralized strategy including strained relationships and lower than expected delivery frequencies.
This document provides an overview of Lego's business including its mission, values, history, and various strategic analyses. It includes 10 slides covering different strategic models like PESTLE, Porter's Five Forces, market life cycle, value chain and more. The document analyzes Lego's strengths, weaknesses and provides a SWOT analysis. It also includes confrontation matrices comparing Lego to opportunities like Asia, logistics partners, and threats like trends and competition. The document proposes an international strategy and includes Ansoff's strategic diagnosis model. It concludes with strategic recommendations like expanding into emerging markets and product lines.
LEGO has adapted to shifting consumer demands in the digital age by integrating physical and digital play experiences. Some strategies include launching mobile apps that interact with physical LEGO sets, creating social networks for fans to share creations, and crowdsourcing new product ideas. LEGO also uses data analytics and artificial intelligence to enhance customer experience, develop accessible instructions, and power immersive rides. Further, LEGO partners with other companies and leverages a platform business model to continue engaging fans across physical and digital experiences.
This document provides an overview of the LEGO company, including its history and product evolution. It discusses LEGO's niche as a brick-based construction toy company and outlines its development from the 1930s to present. The document then covers LEGO's product and target market segmentation, branding and advertising strategy, brand extension and pricing approach. It analyzes LEGO's distribution and retail strategy as well as competitors. The document concludes with recommendations for LEGO's future strategies.
The LEGO Group has a long history starting in 1932 when it began as a wooden toy company. It introduced the now famous LEGO brick in 1958. Key events included the introduction of minifigures in 1974, LEGOLAND parks in 1968, and a partnership with MIT in 1984. Today it is the third largest toy manufacturer, earns over $23 billion annually, and produces over 45 billion LEGO bricks per year. The company's strategy is to strengthen its core business and leverage digitalization, while securing innovative processes and involving children in product development. It is owned by the Kirk Kristiansen family and aims to provide LEGO play experiences to as many children as possible around the world.
LEGO has been producing construction toys since 1932 and has grown to become a global brand. Their mission is to inspire creativity in children. They segment their market based on demographics like age, geography, and psychographics like interests. Their main competitors are other construction and creative toys. LEGO differentiates by encouraging learning through play. Their marketing mix includes licensed products, retail stores, theme parks, and social media promotions. Strategic recommendations include expanding girls' offerings, mobile games, localized themes, and leveraging new technologies like AR/VR.
LEGO is a toy manufacturing company established in 1932 in Denmark that is best known for its plastic interlocking bricks. Over the decades it has expanded its product lines, opened LEGOLAND theme parks, and become a global brand. More recently, LEGO has focused on innovative strategies, a focused marketing approach, and improving consumer service to address issues like late and damaged deliveries. It continues working to meet demand through increased production and implementing new ideas to expand into unexplored areas.
The document summarizes the supply chain of Lego products from sourcing raw materials like plastic and rubber, to manufacturing components through molding and painting/decorating, packaging, distribution through a single warehouse in partnership with DHL, and finally reaching end consumers through specialty retail stores, online ordering, and other retailers. It also discusses Lego's rationale for centralizing its supply chain after continual profit losses in the late 1990s/early 2000s, and some difficulties in implementing the new centralized strategy including strained relationships and lower than expected delivery frequencies.
The Lego case study, the great turnaround 2003 - 2013John Ashcroft
In presenting his report to management in June 2003, Jørgen Vig Knudstorp, then head of strategic development had pulled no punches, “We are on a burning platform, losing money with negative cash flow and a real risk of debt default which could lead to a break up of the company. In 2013, LEGO reported profits of $1.5 bn on sales of $4.5 bn. Quite a turnaround! Here's how.
LEGO Case Study ( Vahit Eren Özer - Riinvest College ) Vahit Eren Özer
The document provides a case study analysis of the LEGO Group. It analyzes the company's external and internal environment using models like Porter's Five Forces and Diamond. It discusses international challenges LEGO faced like a crisis in the late 90s and solutions implemented, including transforming supply chain management. It also covers management of the LEGO brand through branding strategy and challenges encountered maintaining brand uniqueness. Finally, it notes LEGO's future includes enabling customer design of products to inform internal product design.
The document discusses the product life cycle of Lego toys from their introduction in the 1940s through periods of growth, maturity, and decline. In the late 1990s, Lego began facing challenges as it entered the maturity stage, with increasing competition and changing consumer behavior. A series of missteps in the early 2000s, including over-expanding product lines and venturing into unrelated businesses, led to major financial losses. However, under new CEO Jorgen Vig Knudstorp in 2004, Lego implemented a successful turnaround plan focused on profitability, simplifying operations, and refocusing on the core brick-building toy business. These changes helped stabilize the company's decline and set it back on a path of growth.
Lego has had a nearly 100 year history starting as small wooden toys in Denmark in the early 20th century. It grew to dominate the global plastic building brick market for decades. While Lego was highly successful for many years, it began facing challenges in the late 1990s with increased competition from video games and changing consumer behavior. This put the toy in the maturity phase of its product life cycle. By 2004, demand had declined further and Lego entered the decline stage, but managed to avoid demise by reinventing itself through new products and strategies.
The document provides a history of the LEGO company from 2001-2003. It describes how LEGO had a loss in 2000 and struggled at the start of the decade due to an unsuccessful growth strategy. While there was a profit in 2002, 2003 was very disappointing with a 26% drop in sales and a loss of $1.4 billion. Key issues included a build-up of excess inventory, stagnating traditional toy markets, and disappointing sales of licensed movie products. The LEGO parks and retail expansion also faced challenges of being capital intensive with limited returns. Management recognized the need for significant changes to refocus on the core LEGO brand and business.
LEGO Case Analysis and Recommendations Wayne Buerkle
The document discusses recommendations for how LEGO can adapt to the digital era and compete at premium toy prices. It recommends that LEGO create a social media campaign to crowdsource new product ideas from customers and develop a free-to-play LEGO mobile game to allow creative building on the go. It also recommends a LEGO rental service with monthly membership plans and unlimited part exchanges to address issues with high individual product prices and children getting bored of sets over time.
The document discusses the history and business of Lego. It began in 1932 in Denmark as a small toy making company. Over time, Lego focused on developing interlocking plastic bricks and establishing a global brand. The summary discusses Lego's marketing strategy which includes segmenting customers demographically and psychographically, selling products worldwide through various retailers and websites, and promoting the brand through advertising, workshops and an online community.
The Walt Disney Company and Pixar Inc.: To Acquire or Not to AcquireEric Moon
This document discusses Pixar and Disney's potential acquisition of Pixar. It provides overviews of both companies and their capabilities. Pixar has strong animation and storytelling capabilities as well as a culture that promotes creativity and collaboration. Disney lacks these capabilities and has a more hierarchical culture. The document considers alternatives to acquisition like a strategic alliance but finds acquisition makes the most sense for Disney's growth given Pixar is a near-perfect strategic fit. However, risks include integrating the different cultures and financial risks around stock dilution from the deal. In the end, Disney's CEO believes more can be accomplished through full ownership than a joint venture.
Mark strat simulation( firm presentation)Evelyne Otto
Firm M initially targeted high income earners and savers with two brands, MOST and MOVE. Over 10 periods, the company engaged in R&D to develop new brands targeting different segments, eventually focusing on professionals and followers with the MORE and MEGA brands. While revenue increased from $33,313 to $51,035 over this time, earnings fluctuated due to issues with brand performance, pricing, and competition in the market. Lessons learned included the importance of segmentation, targeting, positioning, and accounting for costs in pricing strategies.
1. LEGO was facing major financial struggles in the early 2000s, losing hundreds of millions each year.
2. When Jorgen Vig Knudstorp became CEO in 2004, he implemented a new culture focused on profitability rather than just nurturing creativity.
3. Key aspects of the new culture included an emphasis on making money, innovation, and applying new ideas to improve processes and products.
The document summarizes the history and operations of the LEGO company. It details how the company was founded in 1932 and grew to employ 50 people just a few years later. In the 1960s, LEGO became an international brand. However, in the early 2000s, the company suffered losses after diversifying away from its core toy business. Under new leadership, LEGO refocused on its classic bricks and introduced new products like the LEGO Friends line, helping turn the company around.
This presentation briefly will elaborate how IKEA has adopting Porter's Five Forces and Value Chain Analysis in order to maintain its competitive edges over its rivals in furniture market all over the globe by providing good quality furniture at a lower price tag. Hence by bringing in innovative design, improved functionality, low cost operating expenditures and offering excellent quality at lower prices, IKEA's has proved to be a success.
Apple inc. Strategic Case Analysis PresentationMahy Helal
Apple Inc. is an American technology company headquartered in California. The document provides an overview of Apple, including its history, products, competitors, financial analysis, key success factors, and SWOT analysis. Recommendations for Apple include focusing on differentiated branding, expanding Apple stores internationally, and emphasizing its integrated product ecosystem in marketing. An action plan should prioritize tasks and monitor progress to efficiently implement strategies.
Porter’s Five Forces Analysis for NIke Inc.Sachith Perera
Nike is a multinational corporation that manufactures and markets footwear, clothing, equipment, and accessories. It was founded in 1964 in Oregon and initially operated as a distributor for Japanese shoe maker Onitsuka Tiger. Nike enjoys significant brand recognition but faces threats from competitors like Under Armour and substitute counterfeit products. While Nike has bargaining power over suppliers and customers, it relies on third-party contract manufacturers for production and certain large wholesale customers can negotiate terms.
Comparison of Marketing Mix of IKEA in Four CountriesFatima Arshad
Report Contains Marketing Mix of IKEA. In this report there is comparison of 4Ps of IKEA in Four Countries i.e Sweden, UK, China and India.
This report is result of the efforts of four people.
Designs by Kate uses a direct sales model where women ages 25-50 serve as sales executives and earn commissions of 25-32% on sales over $1000. They hold social gatherings called DBK Parties to showcase products in a soft selling environment. However, sales have declined due to overlapping sales territories that cause reps to lose 15% of recruits after the first, and 10% after the next. Solutions proposed include expanding product categories, increasing events, and boosting incentives and rewards for leaders.
Classic knitwear and Guardian: A Perfect Fit?ArielJimenez36
This document discusses a decision facing Classic Knitwear about whether to partner with Guardian to launch a new line of insect repellent knitwear. Classic Knitwear specializes in manufacturing unbranded casual knitwear, while Guardian is a brand of insect repellent popular with outdoor enthusiasts. The partnership could help Classic differentiate its products and improve its low gross margins of 18%. However, there are risks around whether the new product line would sell well and whether it aligns with Classic's strategy. The document analyzes different options for the partnership and their pros and cons.
- LEGO has transformed its design processes in recent years through a new system called Design for Business (D4B) to better align design with corporate objectives and ensure new solutions have a clear business case.
- Key elements of D4B include strengthening collaboration between design, marketing and management, using challenge sessions and standardized development processes to evaluate projects at decision gates.
- LEGO's 120 person design team uses D4B tools like an innovation model and foundation overview to plan projects from conception through the prototyping and manufacturing phases.
Nike is the world's largest sports apparel company. It has strong brand recognition and focuses on producing high-quality athletic products. While Nike faces competition from companies like Adidas, it maintains a leading position through marketing, innovation, and expanding into new markets globally. The analysis identifies opportunities for Nike to further penetrate growing markets and develop new product lines, while also addressing threats from competitors and shifting consumer preferences.
Juan Carlos Garcia, Dir., Global eCommerce & Omnichannel, Grupo Elektra; David Marcotte, SVP, Strategic Advisory Services, Kantar Retail, WPP; Marti Urrutia Islas, Head of Retail Innovation, Retail Experiences, The Lego Group
Through improved supply chain management and the adoption of new technologies, Lego has transformed its operations and overcome financial crisis. They centralized distribution by closing 5 European warehouses and opening a new one near Prague. This, along with outsourcing logistics to DHL, reduced costs. Lego also shortened its supplier list, calibrated designer creativity with sustainable operations, and increased transparency around costs. These supply chain improvements allowed Lego to focus on increasing customer satisfaction and once again become one of the world's most successful toy producers.
The Lego case study, the great turnaround 2003 - 2013John Ashcroft
In presenting his report to management in June 2003, Jørgen Vig Knudstorp, then head of strategic development had pulled no punches, “We are on a burning platform, losing money with negative cash flow and a real risk of debt default which could lead to a break up of the company. In 2013, LEGO reported profits of $1.5 bn on sales of $4.5 bn. Quite a turnaround! Here's how.
LEGO Case Study ( Vahit Eren Özer - Riinvest College ) Vahit Eren Özer
The document provides a case study analysis of the LEGO Group. It analyzes the company's external and internal environment using models like Porter's Five Forces and Diamond. It discusses international challenges LEGO faced like a crisis in the late 90s and solutions implemented, including transforming supply chain management. It also covers management of the LEGO brand through branding strategy and challenges encountered maintaining brand uniqueness. Finally, it notes LEGO's future includes enabling customer design of products to inform internal product design.
The document discusses the product life cycle of Lego toys from their introduction in the 1940s through periods of growth, maturity, and decline. In the late 1990s, Lego began facing challenges as it entered the maturity stage, with increasing competition and changing consumer behavior. A series of missteps in the early 2000s, including over-expanding product lines and venturing into unrelated businesses, led to major financial losses. However, under new CEO Jorgen Vig Knudstorp in 2004, Lego implemented a successful turnaround plan focused on profitability, simplifying operations, and refocusing on the core brick-building toy business. These changes helped stabilize the company's decline and set it back on a path of growth.
Lego has had a nearly 100 year history starting as small wooden toys in Denmark in the early 20th century. It grew to dominate the global plastic building brick market for decades. While Lego was highly successful for many years, it began facing challenges in the late 1990s with increased competition from video games and changing consumer behavior. This put the toy in the maturity phase of its product life cycle. By 2004, demand had declined further and Lego entered the decline stage, but managed to avoid demise by reinventing itself through new products and strategies.
The document provides a history of the LEGO company from 2001-2003. It describes how LEGO had a loss in 2000 and struggled at the start of the decade due to an unsuccessful growth strategy. While there was a profit in 2002, 2003 was very disappointing with a 26% drop in sales and a loss of $1.4 billion. Key issues included a build-up of excess inventory, stagnating traditional toy markets, and disappointing sales of licensed movie products. The LEGO parks and retail expansion also faced challenges of being capital intensive with limited returns. Management recognized the need for significant changes to refocus on the core LEGO brand and business.
LEGO Case Analysis and Recommendations Wayne Buerkle
The document discusses recommendations for how LEGO can adapt to the digital era and compete at premium toy prices. It recommends that LEGO create a social media campaign to crowdsource new product ideas from customers and develop a free-to-play LEGO mobile game to allow creative building on the go. It also recommends a LEGO rental service with monthly membership plans and unlimited part exchanges to address issues with high individual product prices and children getting bored of sets over time.
The document discusses the history and business of Lego. It began in 1932 in Denmark as a small toy making company. Over time, Lego focused on developing interlocking plastic bricks and establishing a global brand. The summary discusses Lego's marketing strategy which includes segmenting customers demographically and psychographically, selling products worldwide through various retailers and websites, and promoting the brand through advertising, workshops and an online community.
The Walt Disney Company and Pixar Inc.: To Acquire or Not to AcquireEric Moon
This document discusses Pixar and Disney's potential acquisition of Pixar. It provides overviews of both companies and their capabilities. Pixar has strong animation and storytelling capabilities as well as a culture that promotes creativity and collaboration. Disney lacks these capabilities and has a more hierarchical culture. The document considers alternatives to acquisition like a strategic alliance but finds acquisition makes the most sense for Disney's growth given Pixar is a near-perfect strategic fit. However, risks include integrating the different cultures and financial risks around stock dilution from the deal. In the end, Disney's CEO believes more can be accomplished through full ownership than a joint venture.
Mark strat simulation( firm presentation)Evelyne Otto
Firm M initially targeted high income earners and savers with two brands, MOST and MOVE. Over 10 periods, the company engaged in R&D to develop new brands targeting different segments, eventually focusing on professionals and followers with the MORE and MEGA brands. While revenue increased from $33,313 to $51,035 over this time, earnings fluctuated due to issues with brand performance, pricing, and competition in the market. Lessons learned included the importance of segmentation, targeting, positioning, and accounting for costs in pricing strategies.
1. LEGO was facing major financial struggles in the early 2000s, losing hundreds of millions each year.
2. When Jorgen Vig Knudstorp became CEO in 2004, he implemented a new culture focused on profitability rather than just nurturing creativity.
3. Key aspects of the new culture included an emphasis on making money, innovation, and applying new ideas to improve processes and products.
The document summarizes the history and operations of the LEGO company. It details how the company was founded in 1932 and grew to employ 50 people just a few years later. In the 1960s, LEGO became an international brand. However, in the early 2000s, the company suffered losses after diversifying away from its core toy business. Under new leadership, LEGO refocused on its classic bricks and introduced new products like the LEGO Friends line, helping turn the company around.
This presentation briefly will elaborate how IKEA has adopting Porter's Five Forces and Value Chain Analysis in order to maintain its competitive edges over its rivals in furniture market all over the globe by providing good quality furniture at a lower price tag. Hence by bringing in innovative design, improved functionality, low cost operating expenditures and offering excellent quality at lower prices, IKEA's has proved to be a success.
Apple inc. Strategic Case Analysis PresentationMahy Helal
Apple Inc. is an American technology company headquartered in California. The document provides an overview of Apple, including its history, products, competitors, financial analysis, key success factors, and SWOT analysis. Recommendations for Apple include focusing on differentiated branding, expanding Apple stores internationally, and emphasizing its integrated product ecosystem in marketing. An action plan should prioritize tasks and monitor progress to efficiently implement strategies.
Porter’s Five Forces Analysis for NIke Inc.Sachith Perera
Nike is a multinational corporation that manufactures and markets footwear, clothing, equipment, and accessories. It was founded in 1964 in Oregon and initially operated as a distributor for Japanese shoe maker Onitsuka Tiger. Nike enjoys significant brand recognition but faces threats from competitors like Under Armour and substitute counterfeit products. While Nike has bargaining power over suppliers and customers, it relies on third-party contract manufacturers for production and certain large wholesale customers can negotiate terms.
Comparison of Marketing Mix of IKEA in Four CountriesFatima Arshad
Report Contains Marketing Mix of IKEA. In this report there is comparison of 4Ps of IKEA in Four Countries i.e Sweden, UK, China and India.
This report is result of the efforts of four people.
Designs by Kate uses a direct sales model where women ages 25-50 serve as sales executives and earn commissions of 25-32% on sales over $1000. They hold social gatherings called DBK Parties to showcase products in a soft selling environment. However, sales have declined due to overlapping sales territories that cause reps to lose 15% of recruits after the first, and 10% after the next. Solutions proposed include expanding product categories, increasing events, and boosting incentives and rewards for leaders.
Classic knitwear and Guardian: A Perfect Fit?ArielJimenez36
This document discusses a decision facing Classic Knitwear about whether to partner with Guardian to launch a new line of insect repellent knitwear. Classic Knitwear specializes in manufacturing unbranded casual knitwear, while Guardian is a brand of insect repellent popular with outdoor enthusiasts. The partnership could help Classic differentiate its products and improve its low gross margins of 18%. However, there are risks around whether the new product line would sell well and whether it aligns with Classic's strategy. The document analyzes different options for the partnership and their pros and cons.
- LEGO has transformed its design processes in recent years through a new system called Design for Business (D4B) to better align design with corporate objectives and ensure new solutions have a clear business case.
- Key elements of D4B include strengthening collaboration between design, marketing and management, using challenge sessions and standardized development processes to evaluate projects at decision gates.
- LEGO's 120 person design team uses D4B tools like an innovation model and foundation overview to plan projects from conception through the prototyping and manufacturing phases.
Nike is the world's largest sports apparel company. It has strong brand recognition and focuses on producing high-quality athletic products. While Nike faces competition from companies like Adidas, it maintains a leading position through marketing, innovation, and expanding into new markets globally. The analysis identifies opportunities for Nike to further penetrate growing markets and develop new product lines, while also addressing threats from competitors and shifting consumer preferences.
Juan Carlos Garcia, Dir., Global eCommerce & Omnichannel, Grupo Elektra; David Marcotte, SVP, Strategic Advisory Services, Kantar Retail, WPP; Marti Urrutia Islas, Head of Retail Innovation, Retail Experiences, The Lego Group
Through improved supply chain management and the adoption of new technologies, Lego has transformed its operations and overcome financial crisis. They centralized distribution by closing 5 European warehouses and opening a new one near Prague. This, along with outsourcing logistics to DHL, reduced costs. Lego also shortened its supplier list, calibrated designer creativity with sustainable operations, and increased transparency around costs. These supply chain improvements allowed Lego to focus on increasing customer satisfaction and once again become one of the world's most successful toy producers.
- Lego is a global construction toy brand known for its interlocking plastic bricks. It has evolved from a small carpentry workshop in Denmark to a global enterprise.
- Lego targets both genders and all age groups from 5-12 years old, with a focus on imagination, creativity, fun and learning. It has a strong brand image associated with quality.
- The company continues to innovate with new themes, licensed products, video games, theme parks and more to engage customers while maintaining its focus on the Lego brick. It faces competition from cheaper clones and video games but maintains loyalty through quality and constant new offerings.
Lego faces three main threats to its business: losing licensing rights from Disney, losing its brick trademark, and increased competition from Hasbro. To address these threats, Lego should negotiate with Disney to retain licensing rights, pursue new licensing deals with properties like DC comics, expand into emerging markets like China and India, broaden its customer base, and invest in new product innovations like high-tech bricks. In the long term, Lego needs to implement strategies to maintain its leading position in the brick toy market and continue growing its profits.
This is the winning competition deck for the 2012 West Coast Case Competition at UBC. It was created by Ben Cappellacci, Helge Ratvik, and Paul McLaughlin.
This document is a project report on LEGO submitted to a professor. It includes an executive summary, introduction on LEGO's history and early development. It also discusses LEGO's marketing mix, product life cycle, product positioning, market segmentation, advertising, market research, consumer buying behavior, product development, and distribution strategy. The project was completed by MBA students as part of their coursework.
This document introduces a video game studio called ATD Game Studio and their upcoming survival game set in a post-apocalyptic world. It provides information on the global video game industry's rapid growth in recent years. The studio is seeking $250,000 in investment for staffing, development costs, marketing, and other expenses to develop their game further using an early access business model. They believe their genre has strong audience interest and that additional resources can help reduce the game's development time.
This document summarizes a presentation given by Conny Kalcher of the LEGO Group at the 2009 Marketing 2.0 Conference in Paris. The presentation discusses LEGO's strategy of building brand ambassadors and co-creating with the LEGO community. It provides details on measuring customer experience, the large global LEGO community of fans and "Lead Users", and how some community members have become certified professionals or help promote the brand. The goal is to inspire builders and develop closer relationships with hardcore fans.
LEGO Group faced major financial losses in the early 2000s due to high manufacturing costs, excessive inventory, and a complex supply chain. To address these issues, LEGO outsourced much of its production, centralized its distribution centers, and limited product variety and components. However, LEGO's rapid outsourcing to Flextronics without ensuring alignment of business models led to coordination challenges. LEGO learned that outsourcing requires careful partner selection and standardization of processes to optimize outsourced operations.
The Emergence of Industry of Playful Hybrids – Developer’s PerspectiveMindtrek
The document summarizes findings from interviews with developers about the emerging industry of playful hybrid products. It identifies developmental trajectories that enabled the industry's growth, like miniaturized technology and widespread familiarity with digital play. During 2012-2014, the period studied, it was an experimentation phase with many crude products. Physical toys helped with engagement. Looking ahead, developers saw challenges in designing for longevity, evolving hybrid experiences, and risks like not gaining an audience or relying too heavily on stable internet connections.
The Mental Leaps — More, Faster, Better, Happier & More Innovative!Erik Schön
The document is a slide deck presentation about making "mental leaps" to work in a more efficient, innovative way. It discusses principles and mindsets for improving flow efficiency in both products and processes, prioritizing continuous learning and small experiments. It emphasizes planning for continuous innovation by keeping some capacity open for new ideas and challenges.
King Digital Entertainment plc filed for an initial public offering in 2014 to raise capital and facilitate access to public equity markets. King is a developer and publisher of mobile games, generating 95% of its revenue from Candy Crush Saga and two other games. The IPO involved the sale of 22.2 million ordinary shares at $22.50 per share. Proceeds were intended for working capital, acquisitions, and short-term investments. However, King faced risks such as reliance on a small number of successful games, significant competition in the mobile gaming industry, and uncertainty around funding new game development.
Marigo Raftopoulos discusses the opportunities for serious games in corporate training and development. Traditional business tools are becoming ineffective, while serious games can provide immersive learning experiences. Serious games allow learning through doing and experience rather than conventional lectures. However, a sustainable business model is needed to capitalize on this growing market. Partnerships across industries and a solutions-based approach integrating pedagogy and engagement can help serious games studios develop profitable ventures in this space. Corporates are reinventing their business models, so serious games companies must also think outside the box to avoid getting left behind.
In this talk, we introduce the Disciplined Entrepreneurship framework as well as the DE canvas. We end with a challenge to the founding team: "Why are you in business?"
Tinkerbots - An Entirely New Kind Of Building SetChristian Guder
Tinkerbots is the most well-designed robotic building kit available today - remotely controllable with a mobile device and programmable via computer. With our patented plug connector, building robots is very simple. Wireless motion modules enable the user to create stable models and also guarantee integrated data and power transmission. With Tinkerbots, it’s even possible to record and replay motions with only one click. We have also developed patented modules for every possible motion. This is what makes our business, innovative.
The document provides a history of the LEGO company from 2001-2003, a period of financial difficulties. After profit in 2001, LEGO had significant losses in 2002-2003 as sales declined and inventory piled up. Multiple factors contributed to this, including an unsuccessful growth strategy, loss of market share to competitors, and disappointing sales of licensed movie products without new releases. The company's focus on parks, brand stores, and other adjacencies strained resources rather than supporting the core business. By 2003, LEGO reported a loss of $1.4 billion and faced a serious crisis, leading management to implement major changes to refocus on the core toy business.
Case 12 LEGO Group An Outsourcing JourneyMarcus Møller Larsen.docxwendolynhalbert
Case 12: LEGO Group: An Outsourcing Journey
Marcus Møller Larsen
Torben Pedersen
Dmitrij Slepniov
PROLOGUE
1The last five years’ rather adventurous journey from 2004 to 2009 had taught the fifth-largest toy-maker in the world—the LEGO Group—the importance of managing the global supply chain effectively. In order to survive the largest internal financial crisis in the company’s roughly 70 years of existence, resulting in a deficit of DKK1.8 billion in 2004, the management had, among many initiatives, decided to offshore and outsource a major chunk of LEGO’s production to Flextronics, a large Singaporean electronics manufacturing services (EMS) provider. In this pursuit of rapid cost-cutting sourcing advantages, the LEGO Group planned to license out as much as 80 per cent of its production, besides closing down major parts of the production in high-cost countries. Confident with the prospects of the new partnership, the company signed a long-term contract with Flextronics. “It has been important for us to find the right partner,” argued Niels Duedahl, a LEGO vice-president, when announcing the outsourcing collaboration, “and Flextronics is a very professional player in the market with industry-leading plastics capabilities, the right capacity and resources in terms of molding, assembly, packaging and distribution. We know this from looking at the work Flextronics does for other global companies.”1
2This decision would eventually prove to have been too hasty, however. Merely three years after the contracts were signed, LEGO management announced that it would phase out the entire sourcing collaboration with Flextronics. In July 2008, the executive vice-president for the global supply chain, Iqbal Padda, proclaimed in an official press release, “We have had an intensive and very valuable cooperation with Flextronics on the relocation of major parts of our production. As expected, this transition has been complicated, but throughout the process we have maintained our high quality level. Jointly we have now come to the conclusion that it is more optimal for the LEGO Group to manage the global manufacturing setup ourselves. With this decision the LEGO supply chain will be developed faster through going for the best, leanest and highest quality solution at all times.”2
PhD Fellow Marcus Møller Larsen, Professor Torben Pedersen and Assistant Professor Dmitrij Slepniov wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ive ...
Team 5 fy2013 drexel case competition v finalJohn Cao
I participated in the Deloitte Technology Consulting Case Competition to help determine if consulting was a field I could see myself making a career in. After being placed within a team from Drexel, we worked tirelessly to perfect and present our first-place winning case in front of partners and senior managers from Deloitte. The project consisted of aiding a video game design corporation with the decision to move into cloud computing - whereby the potential future of video-gaming may be. I thoroughly enjoyed the time spent working on this project, the materials covered, the research required alongside stepping forward and communicating the results with success.
o Developed a comprehensive cloud gaming strategy for a corporation to help create profitable growth with their customers
o Produced an industry analysis and forecast, a financial model for predicted growth in revenues and a roadmap of the systems development life cycle
o Delivered presentation with team to management and partners of Deloitte that challenged the suitability of the strategy
Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
3. 1932 The
LEGO Group was
founded in by Ole
Kirk Kristiansen
1950s
The LEGO brick is patented
with a coupling principle
and LEGO system of play is
introduced
1960 - 1980
Introduced the first LEGO
building instructions,
LEGOLAND, LEGO DUPLO and
LEGO Minifigures
1980 – 2000
Launch of LEGO website,
LEGO MINDSTORMS, new
factory opening in Kladno,
Czech Republic
2000 – Present
Three factories opened in
Europe, NA and Asia, LEGO
Movie, Opening of LEGO
House
MISSION Inspire and
develop the builders of
tomorrow
VISION Inventing
the future of play
5. Material Requirement Planning
Sequencing
Manufacturing Process Type
Manufacturing Process Layout
Service Process Type
Capacity Planning
Push System
FIFO
Batch Process
Cell Layout
Service Shops (LEGO’s own retail stores)
Lead Strategy
OPERATIONSOVERVIEW
6. 0.00
2,000,000,000.00
4,000,000,000.00
6,000,000,000.00
8,000,000,000.00
10,000,000,000.00
12,000,000,000.00
January February March April May June July August September October November December
Sales(DKK)
Months
LEGO Sales Forecast 2018
• Festive: Increase in sales during
Christmas, Summer, IP partner
movies
• Behaviour: For kids and adults who
prefer construction toys
• Financial: LEGO toys are targeted to
middle – high income customers
• Unpredictable due to short PLC of
toys of approximately 1.5 – 2 years as
a result of constantly evolving
consumer trends
• New product launches account for
approximately 60% of LEGO’s sales
(LEGO Annual Report 2017)
Trend Pattern
Cause of seasonality Predictability Demand Pattern
DKK
38.0 B
7. Transformation Process
Research
Design
Prototype
Testing
Feedback and approval
Production
Marketing
Distribution
Transformed Resources – Materials
ABS Plastic granulates, Coloured resins
Transforming Resources – Human
Capital
Design team, Production department,
Finance, HR, Marketing, Operations,
Sales
Transformed Resources – Facilities
Factories, Molding machines, Automatic
Guided Vehicles, High Bay Warehouse,
Packing assembly
Input
Output
LEGO Toys
Feedback
8. Monterrey, Mexico:
Moulding and processing of LEGO
system elements, packing of
system, and LEGO Duplo
elements
Billund, Denmark:
Moulding of LEGO
System elements
Nyíregyháza, Hungary:
Moluding and packing of LEGO System
and LEGO Duplo elements, and
processing of LEGO Duplo elements
Kladno, Czech Republic:
Processing and packing of
LEGO System elements
Jiaxing, China:
Moulding and processing of LEGO
System elements, packing of LEGO
System and LEGO Duplo elements
LEGOMANUFACTURINGAND
PACKINGFACILITIES
TheLEGOGroup:AShortpresentation,2017
11. 4 V ANALYSIS
Lego produces an average of 36,000 bricks per
minute, 2.16 million bricks every hour, 40 billion
bricks every year (LEGO Group 2018)
Specialised in manufacturing and selling
construction toys only using the LEGO brick
High variation in LEGO elements with 3,700+
elements in 60+ different colours
Customers are able to track online orders through
website and the customer service department is
highly responsive to enquiries
VOLUME
VARIETY
VARIATION
VISIBILITY
LOW HIGH
12. OPERATIONS
PERFORMANCE
COST
QUALITYDEPENDABILITY
FLEXIBILITY SPEED
• COST : Due to the high emphasis given on
quality, Lego’s raw materials and production
costs are high
• QUALITY : All manufacturing facilities adhere
to the same strict safety and quality
regulations and undergo same methods in
production
• SPEED : The most efficient packaging lines
pack over 50,000 boxes every 24 hours
• FLEXIBILITY : Moulding machines can only
produce a limited variation of LEGO elements
• DEPENDABILITY : Fully automated
manufacturing process that enables to run
for 24 hours a day 7 days a week with little
interruption
14. PESTLE ANALYSIS
• International Trade
Agreements
• Tax Policies
• Labour Policies
Political Economic
• Currency Exchange Rates
• Economic Growth
• Labour Costs
• Population size of children
aged 0-14 years
• Price sensitivity
Social
• 3D Printing Technology
• Augmented and Virtual Reality
• Machine learning and Artificial
Intelligence
Technology Legal
• Patents
• Legal systems in different
countries
Environment
• Reached 100% Renewable
Energy Target in 2017
• Raw materials are recycled in
manufacturing
• Plant based plastic to be
introduced in 2018
16. INDUSTRY ANALYSIS
TOYS AND GAMES USD187.1 BILLION
TRADITIONAL TOYS AND GAMES USD82.0
BILLION
VIDEO GAMES USD105.1 BILLION
CONSTRUCTION TOYS USD10.1
BILLION
TOYS-TO-LIFE USD1.4 BILLION
Source: “LEGO Group in toys and games”Euromonitor September 2017
17. THREAT OF NEW ENTRANTS (LOW)
Requires a large amount of capital to
compete globally at the same level
BARGAINING POWER OF SUPPLIERS
(MEDIUM)
• Raw materials are purchased in
large quantities
• Selective in sourcing raw
materials due to emphasis on
quality
POWER OF BUYERS (LOW)
Customers cannot negotiate prices
due to emphasis on high quality,
costly production processes,
perceived value and brand
recognition
THREAT OF SUBSTITUTION (MEDIUM)
• Availability of cheaper construction
toys
• Growing market for mobile games
INDUSTRY RIVALRY
(MEDIUM)
• Equally balanced
competitors
• High degree of
differentiation
INDUSTRY’S KEY SUCCESS
FACTORS:
• Marketing investments
• Research and development
• Brand recognition
• Quality perception
PORTER’S FIVE
FORCES
18. VALUE CHAIN
ANALYSIS
Inbound
Logistics
Operations
Outbound
logistics
Marketing
and Sales
Service
• Few and selective
Suppliers of LEGO.
• Biggest supplier Lanxess
• Designing and prototyping
• Manufacturing
• Quality control
• Warehousing
• Packaging
• Maintenance
• Order Handling
• Dispatch from
Warehouse
• Distribution centres
outsourced to DHL
• Invoicing
• Customer Management
• Order taking
• Sales Analysis
• Market research
• Promotions and
advertising
• Interactive LEGO retail stores
• After Sales Service: Free returns
policy for 90 days, full refunds for
undamaged returned LEGO toys,
responsive customer service via
phone, live chat and e-mail
• Loyalty programs that allows
discounts for future purchases
Differentiation
Strategy
21. • LEGO creations are limited to imagination
• Cross-generational appeal
• Continuously innovates the product to
stimulate demand : Integrating digital
technology around the LEGO brick
• Strong Licensed toys portfolio
MARKETING MIX
PRODUCT PRICE
• Price skimming strategy
• Highly profitable
• Price/brick has remained constant
• Customer perceived value driven by high
quality and brand recognition
There are
915,103,765 ways to
combine six two-by-
four LEGO bricks of
the same colour (LEGO
Group 2017)
22. MARKETING MIX
PLACE
• Selective distribution strategy
• Independent LEGO certified retail stores :
Hamleys, Toys R Us, Tesco, etc
• LEGO owned retail stores
• E-commerce : LEGO official online store,
Amazon, Smyths Toys, etc
PHYSICAL ENVIRONMENT
23. MARKETING MIX Promotion
5.1 Million subscribers
12.8 Million likes
521.1K Followers
6 Million Users
Over 600,000 uploads
7.5Milliondaily
consumerengagements
(LEGO2017Annualpressconference)
Allows LEGO fans to submit own
LEGO creations and get a chance to
launch it as a LEGO product
LEGO creations competition
program on TV
Collaboration with teachers and
educational specialists to deliver
playful learning experiences
LEGO Movies, cartoons and digital
games : The LEGO Movie, LEGO
Batman Movie, LEGO Ninjago, etc
24. MARKETING MIX
People
• Passionate and highly innovative
culture in the company
• Total workforce of 17,500 + full
time employees around the globe
• More than 250 highly qualified
designers from more than 40
different countries
Process
• Manufacturing equipment such as the
moulding machines are specifically designed
and created for LEGO
• High emphasis on quality – The moulds used to
process LEGO elements are accurate to within
0.0004 mm (LEGO website 2018)
• Invests heavily in research and development
that places LEGO in the forefront
25. STRENGTHS
• High brand recognition and
perceived value
• High quality
• Innovation
• Strong License partners
WEAKNESSES
• Expensive
• Limited to construction toys
• Gender imbalance in product
portfolio
• E-commerce reach is limited
• High WIP inventory levels
OPPORTUNITIES
• Expansion to growing markets
• Growth in educational toys
• Growth in AR and VR integrated
toys
THREATS
• Cheaper products from competitors
• Growth of digital games
• Loss of major licenses
• New technologies such as 3D
printing
26. CONCLUSION
• Even though revenues dropped in 2017, the LEGO group is in a strong position
in terms of market share in relevant categories and is in a financially strong
position to recover and compete well against major competitors
• LEGO is a brand well known globally and is a company that continues to work
closely with its major customers; Adult fans of LEGO (AFOL) and kids
• Due to high quality requirements in the company and unpredictable demand,
there are inefficiencies in the supply chain of LEGO which can be improved
• Key factors that will determine future success will be innovation, new markets,
widening the product portfolio, and license partners
27. RECOMMENDATION
• Expand “LEGO Friends” range which is targeted for girls
• Extend e-commerce business and shipping worldwide
• More integration of AR and VR experience to physical toy products with a focus
on educational play experiences
• Focus on expanding operations into emerging markets that will drive revenue
growth of LEGO as a result of current slowdown in mature markets
• Increase localisation of supply chain to bring down logistics costs
• Increase the volume and speed of information sharing across the supply chain
28. References
Hudak (2017) LEGO Group in toys and games (WORLD), Euromonitor International, Available at:
https://www.warc.com/content/article/euromonitor/lego_group_leisure_and_entertainment/90870 [Accessed 20 April 2018]
Jobber, Chadwick (2016) Principles and practice of marketing 8th edn. McGraw-Hill Education
Mattel Corporate (2018) Annual report 2017, Available at https://mattel.gcs-web.com/financial-information [Accessed 15 April 2018]
Sender (2017) Toy Retailing – UK, February 2017, Mintel Academic, Available at:http://academic.mintel.com/display/792539/
[Accessed 07 May 2018]
Slack, Nigel (2016) Operations Management 8th edn, Harlow, England: Pearson
The LEGO Group (2018) About us, LEGO Group corporate website, Available at: https://www.lego.com/en-gb/aboutus/lego-group
[Accessed 1 April 2018]
The LEGO Group (2018) Annual report 2017,2016,2015 Available at: https://www.lego.com/en-gb/aboutus/lego-group/annual-
report/ [Accessed 15 April 2018]
The LEGO Group (2018), How LEGO bricks are made, Available at: https://www.lego.com/en-us/service/help/bricks-building/brick-
facts/how-lego-bricks-are-made-408100000007834 [Accessed 10 April 2018]
Wang, Ip, (2017) Restructuring, brick by brick, Ivey business review, Available at: http://iveybusinessreview.ca/cms/5757/lego-
restructuring-brick-brick/ [Accessed 02 May 2018]