In 1932, Ole Kirk Khristiansen created the Lego Group and innovate the wooden toys that are radical …show more content…
In addition, the company had several problems as the profit is decreasing and the debt is increasing which make the company moving backwards (Johnson et al, 2014). As a result, Kjeld though his management method was not working and he decided to leave his position and pass it to someone who can save the company. In 2005, Jorgen reduced the debt, improved the profit and built up the company finance due to the company is a private company (Johnson et al, 2014). In 2006, the first theme park ‘Legoland’ located in Denmark with a clear aim of ‘inventing the future of play’. When the company had clear goal to achieve but the most difficult part is how to prove to consumer with the innovative product and hard work the company make to meet the vision. This is the key factors that can make the many recover and survive in the toys industry (Elamsy, 2014). Apart innovated the theme part, The Lego Group also reached some new customer need and decided to innovate something new for customer. The Lego Group combined the plastic Lego bricks with famous movies characters like ‘Start War’ and ‘Harry Pottery’. The innovation only some products were success and the other half of the products were fail in the toys market but the success product earned enough money to …show more content…
This can show us that when wooden toys S curve trying to decline, Ole used plastic toys to entre then toys market (Elamsy, 2014). When the plastic toys S curve trying to drop, Kjeld introduce the plastic brick toy, which is bigger and more stable than plastic toys. Plastic brick toy allows children to be creative that is much more attractive than the normal plastic toys. Kjeld knew the plastic brick toys are famous and decided to produce more however the sale did not increase due to the plastic brick toy reached the peak, the company use innovate something new instead of producing more (Elamsy, 2014). After Jorgen replaced Kjeld role, Jorgen innovated the theme park which discontinuity the plastic brick toy S curve. This innovation make S curve continue to growth, when the curve try to decrease Jorgen built a theme park that allows family can communicate and hand out with their kids. Jorgen also innovated with combination of plastic brick toys with ‘Star War’ and ‘Harry Pottery’ characterise although the S curve rose quickly within 2 months due to the movie released at that period (Elamsy, 2014). However this S curve did not last for long period, then the company decided to back to the starting point by renew the original plastic brick toys