Lego Company Case Study: Thelego Company

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he Lego Company was first started in 1916 in Denmark concentrating on building houses and furniture for all farmers. Lego company found its niche in the year 1932 when the first wooden type building blocks were created by that moment lego company had found the purpose in creating toys for small children. Thelego toy product was developed further more and eventually the wooden blocks were developed out for plastic kind of pieces. Lego comany effectively grew its brand by evolving several more product lines for different kind of age groups and specializing its development and production process. However, Lego company, as well as the rest of the toy industry had to experience very slow growth in the period of 1993 to 1998. The declining growth was initially attributed to a declining youth aggresive population in key…show more content…
This was a huge problem for Lego with its licensed products such as Lego Star Wars and Lego Harry Potter. The problem with this was that Lego was unable to see that their licensed products were its new bread and butter especially after they had evolved their standard Lego lineup into a hemorrhaging problem. The main issue with the licensed products was the fact that Lego in conjunction with their lack of accountability was unable to document their toy profits, and when those toys were most popular. With a little help Lego could have identified that their licensed toys, while producing huge profits, were only truly profitable for a short period following the movies for which they were licensed after. Had Lego been able to identify this trend and shifted production to its next licensed product, it would have had a much better shot at sustaining an ongoing growth pattern. When analysis finally was done it was found that 28% of Lego’s top line growth was primarily due to its licensed products for Star Wars and Harry

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