Lego Case Study

2205 Words5 Pages
bulb-icon

Recommended: LEGO brief introduction

Introduction Our group’s research is on The Lego Group. Founded in 1932 by Ole Kirk Christiansen, Lego is now an iconic brand internationally recognised for its production of Lego brand toys.1 1. Company Description of LEGO 1.1 Nature of LEGO business The company’s principal activity is making and retailing toys. It is a major competitor in the toy industry. Lego produces differently coloured bricks that can interlock with each other to create structures. The bricks are sold in sets consisting the bricks required to create a miniature model replicating a larger structure from either real life or even scenes in popular movies. Lego also makes little lego figures and sell them both individually and as part of sets so as to add a degree of lifelikeness to the scene. In addition to producing toys, Lego opened a few amusement parks known as “Legoland” in some countries around the world, though it eventually sold the parks to Merlin Entertainments so they could focus on the core business of manufacturing toys.1 Since 1997, Lego has also expanded into the video game market, releasing games such as “Lego Racers” and “Lego Batman”.2 Even more recently, Lego has become involved in the production of feature-length films based on the toy.2 1.2 History and Success of LEGO Lego was on the verge of bankruptcy in 2003, but recovered from its near-insolvency by proper restructuring of the company.3 Its sales have tripled since 2007 and in the first half of 2013 the Danish group’s $1.9bn of revenue just lagged behind the $2.2bn of market leader Mattel.4 In 2013, Lego also overtook Hasbro Inc to become the world’s second biggest toy company in the world.5 The product release of the “Friends” line in 2012 was a phenomenal success and Lego’s net prof... ... middle of paper ... ... to having higher sales figures. Thus, places with high foot traffic(people) would be desirable e.g Bedok Mall, is in a very good position as it is connected through an underpass to Bedok MRT and it is in a very accessible location. 3.4.6 Demographic Segmentation Legos’ target market includes both genders, male and female. Lego caters to different age groups, from preschool to teenagers, with the primary focus being the 5 to 15 year-old age range.13 3.4.7 Psychological Segmentation Lego targets people who believe in these six values; Imagination, Creativity, Fun, Learning, Caring, Quality.31 3.4.8 Behavioral Segmentation Lego aims to increase brand loyalty with it’s VIP program which provides benefits i.e having access to special sets, events and promotions.32; and Lego Club also provides exclusive information on upcoming sets; comics; quizzes; puzzles for free.33

Show More
Related

  • Knudstrop Case Study

    1045 Words  | 3 Pages

    In 2012 alone, Lego increased its revenue by 25%, nearly tripling their sales in 2007 (Trangbaek). Knudstorp has done an exceptional job in progressing Lego through their darkest of days to a new era filled with success. Lego has managed to do what few companies have and despite its many challenges, they have achieved success and continue to serve as a beacon of light to other companies that are facing similar defeat. I am curious to see the future of Lego and intrigued to see their continued growth in the world.

    Read More

  • The History Of The Lego By Ole Kirk Christiansos

    1119 Words  | 3 Pages

    The history behind Lego’s is an interesting story of how they came to be. The Lego was a great idea. The Lego is a fun, imaginative, creative, and educational toy! The story behind these amazing toys is interesting! The Lego goes way back to the great depression too! These bricks are cool to play with!

    Read More

  • The Lego Film Analysis

    1442 Words  | 3 Pages

    The Lego movie is the story of a simpleton turned knight-in-shining-armor and co on their journey to the top as they brave life on the run from a benevolent dictator in order to foil his devious plot to freeze the world in his image for all eternity. To make matters worse, pretty much each and every citizen is completely oblivious to the full extent of the chaos that is ensuing. At first glance, life seems all but perfect, but in reality, this could not be further from the truth. Even if this is as obvious as the sky is blue, Lord Fussiness has managed to keep resistance at bay through means of manipulating the minds of his citizens into believing a false sense of safety and freedom under his every watch.

    Read More

  • Galaxy Toys Case Study

    1134 Words  | 3 Pages

    The company’s vison is to create toys to inspire children to dream of space travel while the mission is to create durably constructed, sustainable toys, with ingenuity, intrinsic playability,

    Read More

  • Toys R Us Sold

    1152 Words  | 3 Pages

    Toys R Us Inc. revolutionized the toy industry more than four decades ago with its big-box, low-price stores. Toys R Us may be synonymous with toys, but also has its fastest-growing business in Babies R Us, which sells children's clothes, furniture and accessories. The company opened new stores and planned to build new additional Babies R Us stores.

    Read More

  • How Toy Companies Have Adapted and Survived Over the Years

    840 Words  | 2 Pages

    If someone were to walk into a toy store today, they would be hard pressed to locate a toy that did not have some type of label or brand plastered all over it. Rather than going to the store and buying a doll or a wooden train set as my grandfather did as a child, shoppers are now fighting to locate the 'top' brand in order to please their children at home. Toy companies such as Mattel, Lego, Hasbro, Playmobil and Nintendo make up but 5 of the top 10 rated toy companies that exist. These factions have faced their own fair share of trials and tribulations over the years in order to remain on top and the best of the best. As a result, they are more than capable of adapting to the needs of their consumers, and delivering top rated product ready to entertain. An example of this is shown in Cross's work:

    Read More

  • China Case Study Essay

    1012 Words  | 3 Pages

    A quick research of the AliExpress export website shown a list of 50 companies producing interlocking brick toy with probably 25 companies were doing toy similar LEGO type. Those manufacturers based in Chenghai that is core producer for world reputation toy company like Mattel and Hasbro as well. According the huge demands of valuable box sets produced by LEGO, especially some product line featured licensing animation like Marvel and DC comics super hero. Due to the related movies were keep released in these 5 years, it brings the big noise from market which customers are fascinating with those super hero box sets and it could be higher return investment tools than investment in gold. Therefore, many illegal businessmen of brand like Decool and Coko were targeting this specified customer needs and proceeded mass production regarding this reason. However, infringing patent products were sold in much cheaper price than LEGO and Mega Bloks offer, but they can gain the higher profit also. According this finding, we could see this pattern have been copied by many other China manufacturers. It further leads the vicious circle of plagiaristic toy issue in toy industry even same case happened in other industry like luxury

    Read More

  • Influence Of Toys In The 90s

    220 Words  | 1 Pages

    Aren't some toys so fun? Well, so were these toys from the 90's. The Barbie was a toy that many American girls played with. You can change the way she looked and she had a bevy of features. Another toy that enhanced a child's creativity was the Lego brick. These toys let children put the plastic bricks together to make cars, houses and more. The Furby was one electronic toy that you could take care of and play with.

    Read More

  • Mattel Case Study

    2752 Words  | 6 Pages

    Mattel is a company that’s business is to design, manufacture, and market toys. Mattel toy brands included best-selling brands such as Barbie, Hot Wheels, Matchbox, American Girl, and Tyco, as well as Fisher-Price brands, including Little People, Power Wheels, and a wide range of entertainment-inspired toys (Lawrence and Weber, 2011). According to the text, Mattel had a lengthy reputation of being a responsible toy manufacturing company. Mattel was recognized as one of the best corporate companies and earned honors for being one of the United States best corporate citizens. Mattel is the largest toy company in the world. A market capital of over $5.6 billion and employs 30,000 in 43 countries, with sales in more than 150 countries (Mattel, 2011). In August of 2007, Mattel was hit hard with a huge product recall. The first recall was in regards to a Chinese subcontractor (who produces 65% of Mattel’s toys) for using leaded paint. Two weeks later Mattel had to recall another 500,000 toys. The second recall included almost 20 million toys worldwide (Mattel, 2011). These products contained lead paint or faulty design that allowed magnets to fall from toys. Mattel accepted the blame for the harm that was caused by their faulty products and issued recalls due to lead paint and malfunctioning parts, but parents are responsible for ensuring their children are playing with safe toys.

    Read More

  • Walt Disney Company

    2626 Words  | 6 Pages

    The Walt Disney Company started as a small entertainment company in 1923 (Disney.com, 2011). Since that time the company has used various strategies enabling them to grow into a global entertainment company.

    Read More

  • Bumblebee Case Study

    734 Words  | 2 Pages

    Before the world became fascinated over the Transformers film franchise, it was originally a line of toys from a Japanese toy company called Takara Tomy and the American toy company, Hasbro. Hasbro is not just your ordinary American toy company, it is in fact one of the largest toy companies not just in the United States, but to the entire world. They in fact acquired the trademarks over Parker Brothers, Milton Bradley, Kenner, and of course Bumblee and other Transformers action figures. They are also famous for one of the most popular board game, Monopoly, as well as Furby toys and G.I Joe action figures.

    Read More

  • Lego City Case Study

    1670 Words  | 4 Pages

    With all of the designing that was happening in the company, it helped to shrink its profits. Lego City was a popular toy for children but the redesigning shrank the sales and attention the product was once getting. A worker of Lego said it well when he said, “Management was to blame, the same people who were doing crappy products then are making world-class products today” (Greene). Essentially the managers and higher up executives didn’t communication what direction the company should be going. They didn’t have a strategy to follow and tell their employees. With no clear strategy and communication in place, things were a free for all. This lead to the declining profits and stability of the company. Lego assumed that if the designers were able to create whatever they saw fit, that somehow it would lead to a breakthrough in the toy maker’s product line. However, this ideology backfired with high production costs and low profit margins.

    Read More

  • The Walt Disney Company

    3259 Words  | 7 Pages

    The Walt Disney Company, since its official start in 1923, has become a highly valued company across the world. With multiple goods and services to offer, the company thrives in more than one area. Whether a family is going to the movies or buying kitchenware, Disney has found a way to ensure their company name is always around. The Walt Disney Company has categorized its wide sphere of influence under five main divisions.

    Read More

  • Makerbot Case Study

    1010 Words  | 3 Pages

    MakerBot did well because they introduced a low cost 3D printer in the market which could be assembled and would cost less than $1000. The other printers available in the market were large machines which were costing several hundred thousand dollars. Thus, MakerBot was able to cater to the customers who formed low end of the market and were very price sensitive. This helped MakerBot to sell a large number of printers and increased its customer base.

    Read More

  • Lego Robotics Case Study

    935 Words  | 2 Pages

    The Reason is that Last time the Lego Robotics League was such an engaging process, where people can learn practical factors about problems in the world and how to solve them. Another reason is that Lego Robotics also deals with Science and Engineering, which would be great for applying for colleges and working in the field of science. Working with the robots will be very helpful, because of how the world is evolving and how technology is becoming more a part of our world. Having robots take over the world is a great passion of mine.

    Read More

More about Lego Case Study

Open Document