LEGO: Business Strategy Used By John Kjeld Kirk Christianseso
The success of LEGO
Question 1
LEGO was once at the brink of collapsing in 2004 due to bankruptcy but the toy making company made a turnaround and today it is among the most powerful brands in the world. The company was founded by Ole Kirk Christiansen in 1932 in Denmark. Ole was carpenter who decided to make toys out of wood. Over the years, the company tried producing a variety of goods including watches and clothes aiming at becoming a lifestyle brand which made LEGO lose its identity and to grow at a slow pace. In 2001, Kjeld Kirk Christiansen, a grandson of the founder admitted that LEGO was struggling. Kjeld embarked on the strategy of innovation but no significant improvements were noted in the profits until its downfall began to be imminent.
The success of LEGO after 2004 marked an important part of the history of the company. In 2004, the company hired John Knudstorp as the CEO who …show more content…
The strategy of systemizing involves being innovative to diversify how the same products can be used as a unit in new ways that are more interesting. The idea of LEGO was to build town model in which children can move toys around. Compared to other companies which simply marketed basic buildings bricks that lacked a common theme, the idea of LEGO was a new invention that made the firm attract sales. By adding a system in toys, children could learn aspects of the real world such as traffic rules while playing.
Adding a system in toys had a significant impact on Research and Development (R&D). Research and Development involves a business undertaking innovative activities in order to develop new products and services or enhancing the existing products and services. The strategy of systemizing toys caused Godtfred Kirk Christiansen, the son of the founder, to think creatively on how several toys of buses, buildings, animals, and roads can be used together as a unit as in the concept of
Question 1
LEGO was once at the brink of collapsing in 2004 due to bankruptcy but the toy making company made a turnaround and today it is among the most powerful brands in the world. The company was founded by Ole Kirk Christiansen in 1932 in Denmark. Ole was carpenter who decided to make toys out of wood. Over the years, the company tried producing a variety of goods including watches and clothes aiming at becoming a lifestyle brand which made LEGO lose its identity and to grow at a slow pace. In 2001, Kjeld Kirk Christiansen, a grandson of the founder admitted that LEGO was struggling. Kjeld embarked on the strategy of innovation but no significant improvements were noted in the profits until its downfall began to be imminent.
The success of LEGO after 2004 marked an important part of the history of the company. In 2004, the company hired John Knudstorp as the CEO who …show more content…
The strategy of systemizing involves being innovative to diversify how the same products can be used as a unit in new ways that are more interesting. The idea of LEGO was to build town model in which children can move toys around. Compared to other companies which simply marketed basic buildings bricks that lacked a common theme, the idea of LEGO was a new invention that made the firm attract sales. By adding a system in toys, children could learn aspects of the real world such as traffic rules while playing.
Adding a system in toys had a significant impact on Research and Development (R&D). Research and Development involves a business undertaking innovative activities in order to develop new products and services or enhancing the existing products and services. The strategy of systemizing toys caused Godtfred Kirk Christiansen, the son of the founder, to think creatively on how several toys of buses, buildings, animals, and roads can be used together as a unit as in the concept of