LEGO Group:Building Strategy Harvard Case Solution & Analysis

LEGO Group:Building Strategy Case Solution

Relevant Facts:

About the company:

Lego was established in the year 1916 in Denmark, which focused on building homes and furniture for farmers. Lego discovered its specialty in 1932 when the principal wooden building squares were made, and from that minute the organization had discovered its motivation in making toys for kids. The toys were created further and in the end, the wooden squares were eliminated for plastic pieces.

LEGO Group is a Denmark toy organization,which was established in 1932 by Ole Kirk Christiansen. The plan of action depends on offering astounding items that support innovative playing. LEGO's famous item, the plastic block, resulted from the procurement of the organization: plastic infusion forming machine. The year 2000 was a time of hazardous development due to permitting items and scholarly properties.

The organization faced a major development, which included new product offerings as well as PC alterations, apparel, festivals (LEGOLAND), films (Star Wars and Harry Potter), arrangement (Bionicle) and their site. In order to expand, the organization signed contracts with numerous planners, whose thoughts were past conventional blocks, which influenced the cost structure.

About the competition:

Contenders for Lego include Hasbro and Mattel. Hasbro is thought to be one of the biggest toy manufacturers in the world, second to Mattel. Hasbro is also the maker and wholesaler of the world's most well-known tabletop game, Monopoly. Hasbro has a few brands of toys and games aimed at various demographics. Hasbro has frequently attempted the well being of all its products,claiming they do not include the chemical element, lead, and that they surpass government security measures.

Mattel is, however,known as the world's biggest toy importing organization in light of its income. The items that it imports include Barbie dolls, Hot Wheels and Matchbox autos, American Girl dolls and some board funs. Therefore, it is observed that Lego stands at third position in terms of sales revenue and profitability.

About the customers:

Nowadays,successful organizations have been among the primary to emphasize their distinctiveness by receiving customer based marketing and positioning strategies. Such procedures help the management to manage their developing instability with respect to how to position an item and build up an activity plan, which will make the customers loyal to the organization.

In this era, the world is becoming practical and in order to attract the customers,the use of mobile devices is important as it provides access to games, stories and etc. The focus of the customers is on the localization and customization of all the brands, which add value to its line of production.

Therefore, the major focus of Lego is to gain benefits from customization, taking orders of the customers through its website, and to introduce theme parks to attract the customers.

About the contributors:

The contributors do not have much bargaining power, as the inclusion of plastic and infusion of development has made it as never-ending or in other words it could be said that it has become widespread and has the tendency to be dealt with as merchandises. The difference exists in the nature of the materials as well as the commoditized characteristics.

About the overall context:

Lego developed its image by building a few product offerings for various age aggregates and it has been trying to improvement its manufacturing process. In any case, Lego  experienced a modest development in the period from 1993 to 1998.

The declining development was initially credited to a declining population of the children in the key demographics, as a result the time spent playing by the children was reducing. This day and age served as a notice for Lego to expand towards push development. Even with these new changes, Lego still was not being developed and this was mostly due to few issues within the company’s framework externally as well as internally........................

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