Analysis of the Lego Group
Tietgen Business College MM216
COM October 2011
ANALYSIS OF THE LEGO GROUP
Daniella Pascu Daniella Pascu Helvijs Smoteks Noelia García Csaba Precub
Keystrokes: 27205 Teachers: Meg Sønderlund Peter Storm-Henningse
Executive Summary This project is a case study of the LEGO1 Group to analyse the company´s current situation, its future campaign strategy and its further potential of innovate development. The objective is to analyse the management strategy in an objective perspective and find out how a company such as LEGO reaches a certain desirable position on the market. The LEGO group has made itself a giant in the market for children’s toys. The firm began as a manufacturer of wooden toys in Denmark seventy years ago. Sales allowed the Danish company to survive, but not to thrive until it introduced in 1949 miniature plastic blocks, with these plastic blocks the company was able to market to all countries over the world. LEGO has a strategic position in the market, is like a form of oligopoly. Consumers are loyal followers of their brand, while the company's name is associated with the interlocking bricks. Their internal organization is characterized by the centralization of power, which is featured in the family business as the case of LEGO. Its mission is to inspire and develop the builders of tomorrow so the innovation and development is really important in this company. They have to be first in everything, they are focused in growth and for this they must be original, must give consumers what they want and adapt to market changes This case study allows one to enter deeply into the company´s organisation in order to understand all aspects of this success. In the project, the reader will be able to understand how a company that began as a simple carpenter has become a leader in the market, and how the company can manage to maintain this success and reach more costumers and larger market share in the future.
1
LEGO® is a registered trademark that belongs to
COM October 2011
ANALYSIS OF THE LEGO GROUP
Daniella Pascu Daniella Pascu Helvijs Smoteks Noelia García Csaba Precub
Keystrokes: 27205 Teachers: Meg Sønderlund Peter Storm-Henningse
Executive Summary This project is a case study of the LEGO1 Group to analyse the company´s current situation, its future campaign strategy and its further potential of innovate development. The objective is to analyse the management strategy in an objective perspective and find out how a company such as LEGO reaches a certain desirable position on the market. The LEGO group has made itself a giant in the market for children’s toys. The firm began as a manufacturer of wooden toys in Denmark seventy years ago. Sales allowed the Danish company to survive, but not to thrive until it introduced in 1949 miniature plastic blocks, with these plastic blocks the company was able to market to all countries over the world. LEGO has a strategic position in the market, is like a form of oligopoly. Consumers are loyal followers of their brand, while the company's name is associated with the interlocking bricks. Their internal organization is characterized by the centralization of power, which is featured in the family business as the case of LEGO. Its mission is to inspire and develop the builders of tomorrow so the innovation and development is really important in this company. They have to be first in everything, they are focused in growth and for this they must be original, must give consumers what they want and adapt to market changes This case study allows one to enter deeply into the company´s organisation in order to understand all aspects of this success. In the project, the reader will be able to understand how a company that began as a simple carpenter has become a leader in the market, and how the company can manage to maintain this success and reach more costumers and larger market share in the future.
1
LEGO® is a registered trademark that belongs to