Analysis of the Lego Group

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Tietgen Business College MM216

COM October 2011

ANALYSIS OF THE LEGO GROUP

Daniella Pascu Daniella Pascu Helvijs Smoteks Noelia García Csaba Precub

Keystrokes: 27205 Teachers: Meg Sønderlund Peter Storm-Henningse

Executive Summary This project is a case study of the LEGO1 Group to analyse the company´s current situation, its future campaign strategy and its further potential of innovate development. The objective is to analyse the management strategy in an objective perspective and find out how a company such as LEGO reaches a certain desirable position on the market. The LEGO group has made itself a giant in the market for children’s toys. The firm began as a manufacturer of wooden toys in Denmark seventy years ago. Sales allowed the Danish company to survive, but not to thrive until it introduced in 1949 miniature plastic blocks, with these plastic blocks the company was able to market to all countries over the world. LEGO has a strategic position in the market, is like a form of oligopoly. Consumers are loyal followers of their brand, while the company's name is associated with the interlocking bricks. Their internal organization is characterized by the centralization of power, which is featured in the family business as the case of LEGO. Its mission is to inspire and develop the builders of tomorrow so the innovation and development is really important in this company. They have to be first in everything, they are focused in growth and for this they must be original, must give consumers what they want and adapt to market changes This case study allows one to enter deeply into the company´s organisation in order to understand all aspects of this success. In the project, the reader will be able to understand how a company that began as a simple carpenter has become a leader in the market, and how the company can manage to maintain this success and reach more costumers and larger market share in the future.

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LEGO® is a registered trademark that belongs to the LEGO Group.

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Table of Contents Executive summary…………………………………………………………………….2 1.0 INTRODUCTION..............................................................4 1.1 PROBLEM STATEMENT…………………………………………………………………4 1.2 DELIMITATIONS………………………………………………………………………….4 1.3 REPORT STRUCTURE……………………………………………………………………5 2.0 METHODOLOGY SECTION.................................................5 3.0 ANALYSIS SECTION……………………………………………………………….6 3.1 INTERNAL SITUATION…………………………………………………………………6 3.2 EXTERNAL SITUATION………………………………………………………………..8 3.3 ANALYSIS OF CURRENT SITUATION…………………………………………..9 3.4 FUTURE CAMPAIGN STRATEGY…………………………………………………..11 3.5 OBJECTIVES AND EXPECTATIONS FOR THE FUTURE…………………..14

4.0 DISCUSSION………………………………………………………………………16 5.0 CONCLUSION……………………………………………………………………..16 6.0 BIBLIOGRAPHY………………………………………………………………....17 7.0 APPENDICES……………………………………………………………………..18 7.1 APPENDIX A 7.2 APPENDIX B 7.3 APPENDIX C 7.4 APPENDIX D 7.5 APPENDIX E 7.6 APPENDIX F 7.7 APPENDIX G

Diary Memo

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1.0 INTRODUCTION Our group got the first project task which is called project A. We were asked to analyze the current internal situation in a company what is called LEGO. Analyzing the company could be very exciting because over the years LEGO went through so many stages and now it shows different face as was in the past. Dealing with the task we have to look in the company life in recent days and also more in the internal situation, and then we can find answers why LEGO become so popular in our days. Since 1932 from a small family owned Danish company LEGO has become the third biggest toy maker in the world. It was not an easy way to reach this position on the market , but LEGO realized that costumers needs has to be satisfied on so many ways that’s why they have changed strategy and organization system over the years. First priority is focusing on Growth and to reach larger share on the market. With this product which has to do a lot with creativity and...
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