The LEGO Group: | An Outsourcing Journey | | | 8/2/2012 | Introduction 2004 began an especially difficult period for The LEGO Group‚ which entered into a financial crisis resulting in a deficit of 1.8 billion DKK ($294.9MM USD). The internal turmoil lasted through 2009 as the leading toy manufacturer‚ famous for the signature LEGO brick‚ nearly went bankrupt. This experience was a first-hand lesson in the negative effects of not having a stable and organized supply chain design.
Premium Marketing Management Sociology
The Problem How can LEGO expand its current product lines‚ and what strategy should LEGO formulate to maintain market dominance and financial success in future? External Analysis Using SWOT analysis (Appendix A)‚ there are a few factors that are LEGO’s strengths. Its brand name‚ experience in the industry and ability to use innovative technology have allowed them to position themselves as one of the leading forces in the toy-building market‚ and this gives them a competitive advantage over their
Premium
Further‚ the existence of established competitors combined with the need for huge capital investment‚ economies of scale and strong distribution network; keep the threat of new entrants into the traditional games industry is relatively low. 2) Threat of Substitutes: The highest pressure faced by Lego comes from substitutes. A substitute is anything which competes with Lego for a child’s attention such as other traditional games‚ video games or electronic gadgets. Hence‚ there are various substitutes
Premium Marketing Strategic management Lego
Should India be broken up into smaller states? After the decision to give statehood to Telangana‚ many analysts want a new States Reorganization Commission. India today has 28 states. Assuming 20% population growth since the last census‚ Uttar Pradesh has 198 million people‚ more than Brazil‚ Russia or Pakistan. Maharashtra has 106 million‚ West Bengal 96 million and Andhra Pradesh 90 million. All are much bigger than France or Britain. At the other end of the scale‚ Sikkim has just 0.6 million
Premium States and territories of India Uttar Pradesh Hindi
Answers: 1. AFOLs are the adults‚ who love Legos. Considerable amount of Lego Company’s sale (at least $50 million) comes from AFOLs. Similarly‚ they don’t get bored with Legos as they grow up which most often happens with children. Thus they are profitable consumers and important. Different age groups tend use internet in different scales. Young people use internet far more than older adults do. So generally‚ businesses that are focused on young people have high online presence than the business
Premium Marketing Internet Customer service
The Lego Group: Building Strategy‚ Case 10 Overview LEGO‚ the brand of toy that has been played with by multiple generations of people was founded during the Great Depression in 1932 by Ole Kirk Kristiansen‚ a Danish carpenter. Kristiansen started making toys out of wood and had 12 employees under him. The word LEGO combines two Danish words leg and godt‚ which mean “play well” and in Latin‚ fittingly means “to put together”. It’s ironic that LEGO was given that name because it was only later
Premium Lego
Examination Paper of Logistics Management IIBM Institute of Business Management Examination Paper MM.100 Distribution & Logistics Management Section A: Objective Type & Short Questions (30 marks) This section consists of Multiple Choice & Short Note type questions. Answer all the questions. Part one carries 1 mark each & Part Two carries 5 marks each. Part One: Multiple Choices: 1. It deals with the movement of finished goods from the last point of production to the point
Premium Logistics Supply chain management Management
Strategic Analysis of the 2004 LEGO Group Crisis Abstract LEGO Group is a worldwide‚ well-known toy manufacturing company. In 2004‚ the company was faced with a major financial crisis and a major decision to make. Do they try to save the business or not? Through strategic analysis of the company’s external and internal environments‚ many contributing factors became evident. External Analysis The external environment facing LEGO “consists of many external conditions and forces that have the potential
Premium Toy Lego Economics
American Intercontinental University Unit 3 Individual Project MKTG 205 – Principles of Marketing June 29‚ 2011 Abstract This paper gives an overview of distribution channels; Channel Levels such as: Direct vs. Indirect Channel Organizations such as Conventional Vertical‚ Horizontal and Multichannel Marketing Systems. It also‚ explains my target market needs at the Hershey Company. There is also a brief description of how many channel members the company needs and why they need them. Hershey
Premium Marketing
hursday‚ April 4‚ 2013 Distribution Channels at Clothing Retailer Hennes & Mauritz Distribution Channels at Clothing Retailer Hennes & Mauritz A key section in selling success is the strength of a smart sets diffusion impart. Kerry Capells (2002) Business Week article looks at Sweden-based Hennes & Mauritzs (H&M) sourcing and inventory direction strategies and their reliance on distribution channel partners. H&M has developed a extraordinary distribution channel dodge to compete with better entrenched
Premium Marketing Retailing Supply chain