Lego: Building for the Future

Topics: Lego, Lego Group, Lego Mindstorms Pages: 16 (1957 words) Published: October 24, 2011
LEGO: Building for the future
A Comprehensive Case

Abrar Ahmad

Shakeel Anjum

Ali Qurashi

Group Members

Khuram Shahzad

Fahad Insha


Introduction Situation Analysis Problem Identification (Main & Sub)

We will be approaching this case by first analyzing situation broadly and then narrowing down our focus right to the problem and conclusion stage

Alternative Development Evaluation Selection Implementa tion Recomm endation

Time Of Case
•Year 1999

Industry Of Operation
•Toy manufacturing

Time Of Establishment
•1932 By Ole the founder with few employees

Geographic Area
•Becloud, Denmark

•Danish word “Log Godt” meaning “play well”

Key People
•Ole Kirk Christianson (Founder) •Godtred Kirk Christianson (Son)


Size Of The Company

More than 10,000 employees in 30 different countries and among world’s largest toy manufactures Only European company to occupy a place in world’s top ten toy manufacturers Produces its products in Denmark, US, Switzerland and Korea and retailed through 60,000 outlets in more than 130 countries

50 years following its inception Some 203 billion LEGO elements have been produced


Key Dates

• Ole Kirk Christiansen started business with few employees 1932 • LEGO name was first used


• Ole’s son used new material to create four and eight stud building bricks 1949 • Godtfred made most important discovery



• LEGO opened 128 acre-theme park in carsbad


LEGO Group Businesses

LEGO group Play materials Family attractions Lifestyle products Media


DEEP-LIST Analysis
Social Environment
• Child searching for a gift sooner or later is going to encounter the world famous LEGO brand • Many of today’s parents, each new LEGO experience bring back memories • “I remember my brother had a biscuit tin full of red and white LEGO bricks……..”

Technological Environment

• Towards 1940s, Ole realize the huge potential of plastic as new replacement of wooden range • In 1949, Ole’s son used new material to create simple four and eight stud building blocks • In 1958, Godtfred made most important discovery towards joining inside hollow bricks

Demographic Environment

• Children as well as people from other age groups are experienced to use LEGO brands

Note:- No sufficient data regarding Ecological, Economic, Political, Legal, Informational, environment provided in the case

An Industry Analysis



P o r t e r ’s F i v e F o r c e s
Threat of New Entrants

Bargaining Power of Suppliers

Internal Rivalry

Bargaining Power of Buyer

Threat of Substitutes


I m p a c t & s i g n s o f p o r t e r ’s f o r c e s
Sign Impact Moderate Positive Negative Negative

Bargaining power of buyer Bargaining power of supplier Threat of substitutes Threat of new entrants

Moderate Low High High

Internal rivalry



Note:- As most of the forces in this model are negative
therefore the industry in which LEGO operates is unattractive industry

Goals & Objectives
Desire to stimulate children's creativity ‘Creativity unlimited…..Just Imagine’

For people to experience positive, happy association every time they see LEGO element.


S e g m e n t a t i o n & Ta r g e t M a r k e t

Demographic • Age group (play materials 0-5, play materials 4-9, play materials 7-16+, learning materials 7-16+) Geographic • Asia, America, Europe, Japan

• Not provided Media Graphics • Not provided

Customer Profile
Includes all the children with target age range of 0 to 16+

The 4 Hard P’s The 3 Soft P’s




Product Categories(LEGO Group)
• Those products that are built up around a story • Name given to sets or buckets with traditional LEGO bricks

• Category for children who haven’t yet...
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