Lego case study
1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?
Ever since LEGO started experiencing double digit annual sales growth, (by launching new toy games, branded theme parks, entering the video game sector, introducing mobile applications, introducing toys for girls, etc.) they realized they needed a model that was standardized, modular and scalable. Hence, allowing them to expand to new markets in a less amount of time. They already had a decently established market in USA and UK; they were looking for an expansion in other countries as well. This model had to tackle major issues like scalability challenges, employee
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The IBM technologies offered high business flexibilities by their virtualization technologies that delivered high utilization factors and the ability to expand partitions or move workload easily. Thus, this is how the Information Systems and the organization design changes implemented by Knudstorp were aligned with the changes in business strategy.
Ref: http://www-01.ibm.com/software/success/cssdb.nsf/CS/STRD-85KGS6?OpenDocument
2. Which of the generic strategies does LEGO appear to be using based on this case? Provide support for your choice.
The generic strategies used by LEGO (according to me) were:
• Growth strategy
• Product differentiation strategy
• Corporate strategy
Growth strategy: With the help of growth strategy, LEGO introduced new toys in the market. Initially LEGO was something that boys liked playing with but Knudstorp introduced LEGO for girls thus targeting girl child audience which increased his market. Not only this, they also entered the video game sector by making virtual games after collaborating with Sony (which was ruling the gaming console market at that point of time). Later, they started making figures with famous characters from Hollywood movies (Star wars, Batman, The Avengers, etc.).
Product differentiation strategy: Lego was facing stiff competition from its Canadian rival Mega Blocks. They used the product
offer a fully integrated solution of strategy, operations, and information technology was key to its
There was the change in the business strategy in the company that was brought up by the new CEO. The strategy was to survive, cut costs, sell businesses, generate cash and ignore the dash for the growth in the immediate future. Lego was known for the traditional blocks and components that will allow children to build anything with their imagination. The business strategy was to broaden the Lego products for the other customer segments. They created the
Ryan McMaken defends Lego’s gender marketing issue as he focuses on Lego primarily as a profit-seeking business, as well as a business who has proven to know exactly what they are doing. McMaken concentrates on how Lego’s introduction of their Friends Line increased the worth of the female construction toy industry’s from 300 million to 900 million dollars. Evidently, these Lego sets may appear stereotypical or sexist to some, but there are what many people prefer to buy. He explains that Lego, in a competitive industry, must aim to please consumers, meet their needs, and gain a competitive advantage. To do so, it is crucial to offer products that other companies may not; products that will satisfy the needs of all children. Therefore, after extensivea research, and various
The believe documentary over A LEGO brickumentary gives people across the world the opportunity to express themselves using their imagination with the LEGO brick. As the film progressed, I could see many different types of designs. I had absolutely no idea that designers across the world made this their life. They use their imagination and make it out of LEGO bricks, instead of using the directions on the back of the box. They took it and made it their own. What these people came up with and created was extraordinary. I also had no idea LEGOs were such a deal to all sorts of ages and genders. I thought LEGOs were only for children that are only boys, but they vary from young boys and girls up to men and women. Even adults create different structures
The invention of LEGO bricks did not originate from the LEGO Company itself. In fact, in1939, a toymaker, Hilary Fisher Page was the first to visualize the plastic building blocks. Page himself constructed a remarkable cityscape with his unique bricks during the 1947 Earls Court Toy Fair. However, shortly after his exhibition, LEGO has decided to turn away from their “wooden ducks” and invest in a plastic injection machine. Their founder, Ole Kirk Christiansen was impressed by the capabilities of this machine. As a result, he decided to create his own version of Page’s bricks. Unfortunately, in 1957, after Page’s suicide, LEGO bought Page’s invention and gained their first patent for the LEGO toys
Dear Mr. Ward, I recently checked Schoolloop and I found out I have a 0 on the Lego Lab assignment that we had to do with a partner that was assigned on 8-29-14. I am positive that my partner (Jonae) and I completed it and turned it in during my second period class. I know you are a very busy person but whenever you have time I would really appreciate for you to look over and see what is going on with my grade.You can email me back addressing the issue or if you want, we can discuss this in person. Thank you and have a great Monday. Student Signature
The reporting party (RP) stated her son age 16 months (would not provide name) attended the day care. On 1/31/16 the child was picked up from another unlicensed facility operated by Michelle Segovia located at 1012 S. Baldwin, Acadia CA 91007. On that date the child was observed with a large bruise to his left eye. At the time of the injury there was no explanation for the injury, however later the unlicensed provider informed the RP the child had tripped over "LEGO'S." According to the RP the injury was not consistent with the explanation. The RP stated currently the provider is care for two children, her son and another 6 month old child (name not
Lego, from the Danish words “leg godt” or play well, was founded by Danish carpenter Ole Kirk Christiansen in 1932 (Herman, 2012). Known for producing iconic studded plastic bricks that were enjoyed by both children and adults, Lego produced more than 30 Lego-based video games and, through licensing agreements, popular Star Wars and Harry Potter Lego sets (Baichtal & Meno, 2011). Lego also sold a series of Arctic sets including an Arctic Base Camp, Arctic Outpost, Arctic Helicrane, Lego Ice Crawler, and Arctic Snowmobile. Those sets sold for $89.99, $49.99, $39.99, $14.99, and $6.99 respectively. Lego’s 2014 film, The Lego Movie, grossed more
Lego has a global supply chain already in place and includes processes of planning, production, distributing and logistics. The E-Commerce project will impact distributing and logistics because of the differences in delivering to consumers versus delivering to retailers and other distributors. Delivering the product on time and correctly is a main priority of the E-Commerce site and can prove to be a strength or a weakness. Currently Lego, Inc. has companies and offices in 30 countries and covers 6 continents providing a great deal of resources needed for both the selling to consumers and perhaps some of the infrastructure existing can support the Lego Mind storm’s e-commerce sites.
Technology, like LEGO toys, is combining materials and techniques with a spark of idea to accomplish a certain objective. Since the first industrial revolution started in the 18th century, the gross productivity in the world has dramatically rocketed to a higher level than ever before. People will be astonished about how the technology has profoundly changed different aspects of life, especially in those innovations that can bring numerous possibilities to the future generations. In fact, the innovative technologies have impacted actively on different aspects of life, such as improving efficiency in agriculture, changing education patterns and using sustainable energy.
According to the market competitors and customer needs, I have three different strategies for LEGO’s three strongest-selling product lines. First LEGO City faces the competition from MEGA’s high similarity but low price MEGA Bloks. The market situation is that competitor’s products price lower than LEGO but still capture low market share. That means LEGO has significant customer loyalty and good brand image. Even LEGO has most of the market share (LEGO’s sales revenue is 3.7 billion in 2010 and MEGA’s sales revenue is 0.368 billion almost 10% of LEGO), but the customers are price sensitive because the MEGA Blocks had seen 17 years sales revenue growth. According to economies of scale and learning
We will be approaching this case by first analyzing situation broadly and then narrowing down our focus right to the problem and conclusion stage
Knudstrop comprehended the necessity for the Information framework and enhanced hierarchical structure. His front line procedure of reusing the modules to fabricate new items went about as rescue, where the module utilization was diminished to 7000 from 13000. Every module cost around 50000 euro, which coordinated in decreased expense for developing. In further new alterations are developed in building up the module with decreased cost, managed quality and enhanced item subjects with current business sector pattern helped LEGO to enhance its money related position in the business sector.
Employees pay structure was revamped which focused on incentive for product innovation and creativity. Alteration from fragmented system to modularized system resulted in proper utilization of injection molding operations and the manufacturing plants were relocated to low costs of locations. Hypothesis driven method was used to change and improve the processes. Customer oriented philosophy was endorsed which was based on feedback from the customer base. Company’s brand ambassadors participated in conventions across the world to discuss about product innovation. The sourcing was more strategic by starting pilot programed focus on the cost rationalization of company’s raw materials. The distribution channels were moved closer to customers and companys marketing worked in conjunction with biggest retailers which aided in joint forecasting and product
Companies over the last decade, has recognized that their survival to a lesser or greater extent, depends either entirely or partially to appropriate information system. It is established, based on lesson learned from both failed and successful organizations, that an information system strategy are to support or aligned with, business strategy. Similarly the business strategy can influences the choice of Information System used in the organization. A business strategy entails futuristic organizational planning that result in companies gaining competitive advantage. It is direct linked to supporting area such as marketing, procurement, and information system. The case of Comair airline, even after acquisition by Delta