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The LEGO Case Study - New for 2013
In 2003 and 2004 LEGO announced losses of over $400 million dollars on annual sales of just over $1 billion. The reorganization plan announced in 2001 had begun to falter. The company was forced to take a hard look at every facet of the operation including costs, overheads, margins, sales, marketing and the product offer.
Non performing assets, including the company's LEGOLAND parks were sold off. A radical plan for recovery and growth was introduced. Since then company revenues have increased from $1 billion to $4 billion [2012] and profits have soared to $1.3 billion before tax. The company's share of the world toy market has doubled from 2% in 2004 to over 5% in 2012. LEGO has overtaken HASBRO as the second largest toy manufacturer in the world.
How did LEGO achieve this sensational turnaround? We apply our Corporate Strategy framework analysis to help explain how and why. Comparisons with The Apple Case Study abound! It's revealing! Update by John Ashcroft, John Ashcroft and Company.
The Full case study runs to some 5,000 words with excel files and teaching notes. We analysis the success of LEGO using our classic corporate strategy framework. We are working on the final draft now, available as a download from August 2015.
Meanwhile Check out The Apple Case Study by John Ashcroft and Company. by Maggie Starvish
Although it isn't part of the admissions criteria, experience playing with LEGOs can come in handy at Harvard Business School.
When Stefan H. Thomke teaches his new case about the iconic toy company, he gives students eight-studded LEGO building bricks to figure out how many different ways they can be combined. Thomke's experience goes back a long way—as a kid growing up in Germany he participated in a LEGO competition. As an adult, though, his interests lie more in the business behind the bricks. "When you've written many cases you have a gut feeling that one like this could be really great," he says.
In 2003 and 2004 LEGO announced losses of over $400 million dollars on annual sales of just over $1 billion. The reorganization plan announced in 2001 had begun to falter. The company was forced to take a hard look at every facet of the operation including costs, overheads, margins, sales, marketing and the product offer.
Non performing assets, including the company's LEGOLAND parks were sold off. A radical plan for recovery and growth was introduced. Since then company revenues have increased from $1 billion to $4 billion [2012] and profits have soared to $1.3 billion before tax. The company's share of the world toy market has doubled from 2% in 2004 to over 5% in 2012. LEGO has overtaken HASBRO as the second largest toy manufacturer in the world.
How did LEGO achieve this sensational turnaround? We apply our Corporate Strategy framework analysis to help explain how and why. Comparisons with The Apple Case Study abound! It's revealing! Update by John Ashcroft, John Ashcroft and Company.
The Full case study runs to some 5,000 words with excel files and teaching notes. We analysis the success of LEGO using our classic corporate strategy framework. We are working on the final draft now, available as a download from August 2015.
Meanwhile Check out The Apple Case Study by John Ashcroft and Company. by Maggie Starvish
Although it isn't part of the admissions criteria, experience playing with LEGOs can come in handy at Harvard Business School.
When Stefan H. Thomke teaches his new case about the iconic toy company, he gives students eight-studded LEGO building bricks to figure out how many different ways they can be combined. Thomke's experience goes back a long way—as a kid growing up in Germany he participated in a LEGO competition. As an adult, though, his interests lie more in the business behind the bricks. "When you've written many cases you have a gut feeling that one like this could be really great," he says.