Professional Documents
Culture Documents
The Lego Groupgroup12docx PDF Free
The Lego Groupgroup12docx PDF Free
SUBMITTED BY –
ABHISHEK GAUTAM
ARITRA NANDI
SONAM DOLMA
VIMAL JEPH
1. How attractive is the branded toy industry?
✔ -with sales approaching $3.5 billion in 2011 the lego group was the
third biggest toy manufacturers in the world.
✔ -it enjoyed a 5.6% market share in the worldwide traditional toys
and games sector and a 60.9% market share in the worldwide
construction toys category, in which it was a leading company in
most countries.
✔ -with its head office in denmark, the group had subsidiaries in the
americas, europe, africa and asia and was selling its products in over
130 countries.
✔ The ceo of the lego group jorgen vig knudstorp, developed a new
strategy – to focus on the core products and core processes.
✔ He worked on to improve on three major areas: product
development, customer relationship management, and supply chain
management.
✔ By 2012, these capabilities were organised into centralised functions
and were seen as the building blocks of a powerful new ‘business
architecture’.
PRODUCT DEVELOPMENT:
• THE NEW MANAGEMENT TEAM’S FIRST DECISION WAS TO SIMPLIFY PRODUCTION
AND DESIGN BY LIMITING THE NUMBER OF DIFFERENT BRICK ELEMENTS IN USE.
COMMONALITY WAS AT THE HEART OF STANDARDISING THE KEY OPERATING
PROCESSES OF PRODUCT DEVELOPMENT.
• THE LEGO GROUP SHOWED THE ABILITY TO USE CONSUMER INSIGHT IN PRODUCT
DEVELOPMENT. ALSO, THE MARKETING STAFF CONDUCTED EXTENSIVE RESEARCH
WITH FAMILIES FOR WEEKS TO UNDERSTAND HOW CHILDREN LIVED AND PLAYED.
CHALLENGES
● THE RISK OF OUTSOURCING PRODUCTION. RISK IS INVOLVED AND ALSO
QUALITY CONTROL ISSUES.
● DIFFICULTY IN ALIGNING THE GROUP’S SEASONAL AND UNPREDICTABLE
DEMAND WITH FLEXTRONICS MODEL.
● GROUP PRODUCTS WOULD NOT RESPOND TO MYRIAD OF CULTURAL
DIFFERENCES OF ASIAN MARKET.
● INSTEAD OF LARGE RETAILERS ,REGION WAS FILLED WITH MANY SMALL ONES
SO LEGO LACKED A DEVELOPED RETAIL NETWORK.
WERE THE TWO UNCERTAINTIES OF THE FUTURE THAT WILL HAVE THE
LARGEST IMPACT AND INFLUENCE ON THE BUSINESS. ACCORDING TO THESE,
LEGO WOULD HAVE 4 POSSIBLE ACTIONS TO TAKE AND PREPARE FOR
NECESSARY RESPECTIVE SCENARIOS THAT MIGHT ARISE DUE TO EACH ACTION