Innovation at the Lego Group (A) Harvard Case Solution & Analysis

The case tells the story of a company where innovation is extremely important, but does not work well. In 2003, the LEGO Group had a number of positive qualities: he was a respected brand with some very good lines toy. He was an avid customer base, which in many areas has been more difficult than its domestic designers. And it was able to expand the brand in many areas, such as toys, games, clothing, theme parks, movies, and many other types of games, earning significant revenues (not profit). But in 2003 the company was currently in big trouble. In the last 5-10 years, the toy industry was sharply altered so that it is not in favor of LEGO Group. These changes, combined with some poorly planned investment and the decline in the sales of some important lines of toys, in conjunction with the LEGO Group almost put out of business. The company lost almost DKK 1 billion in 2003 and its cash fell dangerously low. It was the largest loss in the history of the company, and many analysts believe that the bankruptcy and may even collapse and sale of the company, most likely. The company quickly sold the assets, reduced headcount and outsource production to cut costs and generate cash. But he knew, to turn around the company, it had to improve its overall innovation system. This was to improve the time to market success and profitability in its innovation system. Case is a series of tasks representative of LEGO faces in 2004 and beyond. Learning objectives: 1) the restructuring of the innovation system. 2) How to encourage all types of innovation (innovation in pricing, business model, channel to market, branding, customer experience, etc.) and the coordination of these innovations in the company. 3) How to involve external parties such as customers, more product manufacturers, and foreign inventors in the innovation system. "Hide
by David Robertson, Robert J. Crawford Source: IMD 13 pages. Publication Date: March 28, 2008. Prod. #: IMD380-PDF-ENG

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