Lego Case
Problem Statement: As a manager of The Lego Group I think the main problem that Lego faces is maintaining its competitive advantage and growth in the complex toy industry. Lego must identify a clear expansion plan to respond to the external (business) threats such as intense competition and new product innovations, changes in the toy industry with mergers and acquisitions and legal battles as well as maintain efficient internal operations in terms of supply chain and logistics in order to keep up their market dominance in the industry which is currently at stake.
Company History: Lego first started off during the great depression in 1932 manufacturing children’s toys using the highest quality material and workmanship to always produce top quality products – true to its motto ‘only the best is good enough’ (Refer to Exhibit 2 for strengths). His toys were designed to last through years of play which ensures durability of the product. Two years later the name Lego came into being meaning ‘play well’ in Danish and also ‘I put together’ in Latin. The company had the ‘pioneering advantage’ according to exhibit 2. Ten years later the entire workshop burned down however, Kristiansen rebuilt the factory and remade all his lost designs from memory. At the end of World War I, Lego purchased an expensive plastic injection moulding machine and one of the first plastic toys’ a fish shaped baby’s rattle was created which was a tremendous success and thereafter Lego quickly expanded its business operations and produced over 200 varieties of plastic and wooden toys. Using this new technology the just plastic Lego bricks named Automatic Branding Bricks were created. In 1953, it was changed to Lego Bricks. Godfred one of Kristiansen’s sons took over and came up with an idea to design a new structured system of toy products using the Lego Brick to create the Lego ‘system of play’. The whole purpose of the Lego system of play was to “create a toy that prepares the child for life
Company History: Lego first started off during the great depression in 1932 manufacturing children’s toys using the highest quality material and workmanship to always produce top quality products – true to its motto ‘only the best is good enough’ (Refer to Exhibit 2 for strengths). His toys were designed to last through years of play which ensures durability of the product. Two years later the name Lego came into being meaning ‘play well’ in Danish and also ‘I put together’ in Latin. The company had the ‘pioneering advantage’ according to exhibit 2. Ten years later the entire workshop burned down however, Kristiansen rebuilt the factory and remade all his lost designs from memory. At the end of World War I, Lego purchased an expensive plastic injection moulding machine and one of the first plastic toys’ a fish shaped baby’s rattle was created which was a tremendous success and thereafter Lego quickly expanded its business operations and produced over 200 varieties of plastic and wooden toys. Using this new technology the just plastic Lego bricks named Automatic Branding Bricks were created. In 1953, it was changed to Lego Bricks. Godfred one of Kristiansen’s sons took over and came up with an idea to design a new structured system of toy products using the Lego Brick to create the Lego ‘system of play’. The whole purpose of the Lego system of play was to “create a toy that prepares the child for life