Lego Case Study
LEGO CASE STUDY
CASE OVERVIEW
• LEGO Group – A brick based toy making company • Founded in 1932 (during the Great Depression)as a small carpenter’s workshop Ole Kirk Kristiansen – build stepladders, iron boards and wooden toys • HQ – Billund, Jutland in Denmark • 1934 – Kirk’s son joined Godtfred Kirk • LEGO means – “leg”(play) “godt”(well)
ORGANIZATION
• Owned by the third and fourth generations of the Kirk Kristiansen founding family: Kjeld Kirk Kristiansen and his three children.
FINANCIAL HIGHLIGHTS
Income Statement Revenue Expenses Net Profit Employees: Average number (full-time) 2011 18,731 (13,065) 4,160 2010 16,014 (10,899) 3,718 2009 11,661 (8,659) 2,204 2008 9,526 (7,522) 1,352 2007 8,027 (6,556) 1,028
9,374
8,365
7,286
5,388
4,199
Today the LEGOGroup is the third largest toy manufacturer in terms of sales:
1. Mattel (Barbie, Hotwheels, WWE, etc) 2. Hasbro (Transformers, NERF, Sesame Street, Playdoh etc) 3. The LEGO Group 4. Bandai-Namco (Power Rangers, Strawberry Shortcake, BEN 10.etc) 5. TOMY-Takara (BeyBlades, atomic pin ball, Jenga, etc)
LEGO’S PRODUCTS
• LEGO’s products ranges over different flavours • Traditional brick • Duplo – a kind of brick-building game (twice the size of a normal lego brick) • Technic and Bionicle – Construction toys and action figures • Mindstorms NXT – Robot designs by users to perform various operations • LEGO Education – targets the educational sector for teachers and pupils
MARKET SIZE
Exports to more than130 countries with US and Germany its largest markets. Wide user base -ranging from preschool children to a significant population of adult users.
DUPLO
CORE LEGO SYSTEM
Sells products specifically to be used by adults in management training activities through LEGO Serious Play.
TECHNIC
STRATEGY
• LEGO has remained true to its original mission of producing toys that encourage children to create and use their imagination – unique selling point • Viewed as a
CASE OVERVIEW
• LEGO Group – A brick based toy making company • Founded in 1932 (during the Great Depression)as a small carpenter’s workshop Ole Kirk Kristiansen – build stepladders, iron boards and wooden toys • HQ – Billund, Jutland in Denmark • 1934 – Kirk’s son joined Godtfred Kirk • LEGO means – “leg”(play) “godt”(well)
ORGANIZATION
• Owned by the third and fourth generations of the Kirk Kristiansen founding family: Kjeld Kirk Kristiansen and his three children.
FINANCIAL HIGHLIGHTS
Income Statement Revenue Expenses Net Profit Employees: Average number (full-time) 2011 18,731 (13,065) 4,160 2010 16,014 (10,899) 3,718 2009 11,661 (8,659) 2,204 2008 9,526 (7,522) 1,352 2007 8,027 (6,556) 1,028
9,374
8,365
7,286
5,388
4,199
Today the LEGOGroup is the third largest toy manufacturer in terms of sales:
1. Mattel (Barbie, Hotwheels, WWE, etc) 2. Hasbro (Transformers, NERF, Sesame Street, Playdoh etc) 3. The LEGO Group 4. Bandai-Namco (Power Rangers, Strawberry Shortcake, BEN 10.etc) 5. TOMY-Takara (BeyBlades, atomic pin ball, Jenga, etc)
LEGO’S PRODUCTS
• LEGO’s products ranges over different flavours • Traditional brick • Duplo – a kind of brick-building game (twice the size of a normal lego brick) • Technic and Bionicle – Construction toys and action figures • Mindstorms NXT – Robot designs by users to perform various operations • LEGO Education – targets the educational sector for teachers and pupils
MARKET SIZE
Exports to more than130 countries with US and Germany its largest markets. Wide user base -ranging from preschool children to a significant population of adult users.
DUPLO
CORE LEGO SYSTEM
Sells products specifically to be used by adults in management training activities through LEGO Serious Play.
TECHNIC
STRATEGY
• LEGO has remained true to its original mission of producing toys that encourage children to create and use their imagination – unique selling point • Viewed as a