This should due to the frequent shift of senior management and the loose in production control. Major customers were frustrated by stock-out and slow-moving inventory.
Though it should continue expansion, the competency of its plastic bricks should be maintained. During the two periods mentioned in the case, the designers created more complex and distinct pieces Lego case analysis essay some sets to cater for the market shifts.
The business should be adjusted to meet the demand of the market. The Lego Group should continue expanding into new product areas like media products which could complement the plastic products as well as cater for increasing consumer needs in this area.
The new management team focused more on market dynamics than production. Currency fluctuations was also one of the main reasons for its unsatisfying performance.
However, the Lego Group invested significantly in expansion not only in brick-based product lines, but also beyond the brick. The strategic actions deviated from some of the ten principles. All of those made it difficult for the group to identify the unprofitable products.
Limited protection of intellectual Property Market shifts From the analysis we can see that the Lego Group was in a very difficult situation. More essays like this: It could be out of stock for a product just because of missing one piece.
For the core plastic bricks, the Lego Group should continue manufacturing them by its own factories to ensure the best quality. For products which are less related to its original products and mission such as clothes and watches should be stopped.
Strategic Actions Built a five-person management team Frontlined managers Dismissed the head of production Focused on growth not margin Businesses were encouraged to make own decisions Branched out beyond the brick: During the first periodKristansen left the company for one year and dismissed the head of production when he returned.
Therefore, the strategic actions failed to gain a better result, though the group boosted its investment during the two period. More complex design conflicted with automated production line. Inaccurate or wrong forecast made inventory situation stock-out or overstocked even worse. The expansion was not focusing on its core competency.
Non-outsourcing and in-house expansion without cooperating with partners boosted expenses. To turnaround the situation, it has to solve the weakness and seize the opportunity while focusing on a clear strategy.Lego Case Analysis Essay Sample.
1. From early s tothe Lego Group, a long successful toymaker with a world-renowned brand, fell into the edge of bankruptcy. Essay on Lego Case Analysis Words | 7 Pages The Lego Group Case: The Crisis Prior to finalizing a strategic recommendation for Knudstorp and the Lego Group, I needed to gain perspective on the industry and internal factors that have historically interfered with Lego’s business model, and thus lead them to the point of bankruptcy.
Mgmt individual case study TABLE OF CONTENTS Introduction The essay is a strategic analysis for LEGO Group. LEGO Group is a famous toy company in the world, which established in Denmark. LEGO Brand is not.
A line of LEGO-branded children’s wear was created and a division of the LEGO Group was charged with pitching book, movie, and TV ideas. LEGO building sets became increasingly complex with more unique components.
Essay about Case Analysis Lego A The Crisis 1.
From early s tothe Lego Group, a long successful toymaker with a world-renowned brand, fell. Introduction The purpose of this paper is to do a case analysis over the Lego brand. We have evaluated the company to find their strengths and weaknesses to find a problem with in the organization.Download