Essay On Leaproll

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Executive Summary
LeapFrog Enterprises, Inc. is an educational toy company that develops learning toys for young children. Ever since launching its best-selling game LeapPad in 1999, LeapFrog has controlled the interactive learning niche market segment in the toy industry. LeapFrog’s top competitors Hasbro and Mattel have yet to fully explore developing learning toys. LeapFrog successfully utilizes its core competencies, such as its proprietary NearTouch technology found in the award-winning LeapPad, to stay on top of the competition by making incremental innovations to its existing products.
To protect itself against the challenges created by altering purchasing tendencies of consumer, shifting demographics, and the ever so changing trends of the toy industry, LeapFrog has developed its identity as a maker of learning toys and reorganized its structure to operate more efficiently over the long-run. A key element of its success is expanding the presence of its SchoolHouse division. LeapTrack, the company’s most ambitious product which released in 2002, offers teachers a way to assess students from Kindergarten to the 5th grade. The integrated assessment system enables teachers to track their students’ educational progress through LeapFrog games on the LeapPad and based on their students’ ability to learn quickly Leapfrog will provide teachers with product recommendations. LeapTrack has the potential to be a crucial differentiator from the existing competition in the school market, which includes McGraw Hill, Pearson, Harcourt, Houghton Mifflin, and Scholastic. Penetrating the school market will help leapfrog decrease industry risk by diversifying their markets. In addition, schools are high volume purchases, which will result i...

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...million in savings per year. Furthermore, LeapFrog should allocate its R&D to its core products and LeapTrack and a household version of LeapTrack.
Out of LeapFrogs competitors, Hasbro would be the most compatible. It has the financial strength to acquire Leapfrog and will be able to pay extra for goodwill. Hasbro has yet to develop a serious educational toy brand. Judging from toy market trends, Hasbro will be looking to produce educational toys. Hasbro focuses more on traditional toys and games, therefore adding LeapFrog to its company would not cannibalize any of its products. LeapFrog can fit into Hasbro's corporate structure as a separate brand, so LeapFrog's creative culture will not be sacrificed. For years LeapFrog successfully paired fun with learning for kids and its addition to Hasbro would provide it with the capital to take business to the next level.

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