Innovation at the Lego Group
CASE STUDY 1
Innovation at the Lego Group A&B
- 9.10.2014
Brief Description
LEGO is a toy company established in 1932 by Ole Kirk Christiansen. LEGO offered high quality toys and at the same time encouraged children to be creative. Over the years they developed their products and company grew steadily and successfully till the mid
90’s. LEGO immediately noticed their fall in the market, in order to keep up they did many innovations.As a result company was expanded with the aggressive innovations such as new amusement parks(LEGOLAND), clothing lines, computer games, new lines/ kits (Harry Potter,Star Wars,Bionicle) etc. At first company’s sales and number of customers were increased but then they realized that their growth strategy was not working and there has been a dramatic decrease within their revenues and net income.
In 2004, after a huge amount of cash loss, LEGO appointed a new president and
CEO- Knudstrop. Kundstrop developed a new 5 year plan titled “Shared Vision”. Shared
Vision had three different parts and first step was basically planning to achieve increase cash, decrease cost, clarify LEGO’s identity and make sure of that every product produced matches company’s identity. In the second step he aimed to revitalize the core product lines by outsourcing. And in the final step he focused on developing innovative new play experiences. Texts explain us steps of this plan and helps us to understand why Kundstrop’s
Shared Vision was successful and different enough from previous innovations of the company. Evaluation of Changes
At the beginning of 2000’s LEGO went through several changes and made some radical innovations to change the decrease with their sales and revenues. They started lots of innovative projects such as computer games, clothing lines, amusement parks and movies. They also corporate with Star Wars and Harry Potter movies and produced new licensed LEGO kits. They also created a new series called “Bionicle “.
Innovation at the Lego Group A&B
- 9.10.2014
Brief Description
LEGO is a toy company established in 1932 by Ole Kirk Christiansen. LEGO offered high quality toys and at the same time encouraged children to be creative. Over the years they developed their products and company grew steadily and successfully till the mid
90’s. LEGO immediately noticed their fall in the market, in order to keep up they did many innovations.As a result company was expanded with the aggressive innovations such as new amusement parks(LEGOLAND), clothing lines, computer games, new lines/ kits (Harry Potter,Star Wars,Bionicle) etc. At first company’s sales and number of customers were increased but then they realized that their growth strategy was not working and there has been a dramatic decrease within their revenues and net income.
In 2004, after a huge amount of cash loss, LEGO appointed a new president and
CEO- Knudstrop. Kundstrop developed a new 5 year plan titled “Shared Vision”. Shared
Vision had three different parts and first step was basically planning to achieve increase cash, decrease cost, clarify LEGO’s identity and make sure of that every product produced matches company’s identity. In the second step he aimed to revitalize the core product lines by outsourcing. And in the final step he focused on developing innovative new play experiences. Texts explain us steps of this plan and helps us to understand why Kundstrop’s
Shared Vision was successful and different enough from previous innovations of the company. Evaluation of Changes
At the beginning of 2000’s LEGO went through several changes and made some radical innovations to change the decrease with their sales and revenues. They started lots of innovative projects such as computer games, clothing lines, amusement parks and movies. They also corporate with Star Wars and Harry Potter movies and produced new licensed LEGO kits. They also created a new series called “Bionicle “.