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LEGO- Case Study Assignment

   

Added on  2020-10-22

14 Pages4082 Words400 Views
LEGO- Case Study

Table of ContentsINTRODUCTION...........................................................................................................................1Task A, identify and evaluate the key drivers of innovation contributing to the success ofLEGO.....................................................................................................................................1Task B, using appropriate strategy and innovation frameworks, critically analyse the differentapproaches taken by LEGO to identify opportunities on the market.....................................3Task C, critically analyse the view that LEGO's success can be attributed to the successfulapplication of Blue Ocean strategy.........................................................................................6CONCLUSION ...............................................................................................................................8REFERENCES..............................................................................................................................10

INTRODUCTIONLEGO is a manufacturing company. It mainly manufactures stepladders, ironing boards,stools, wooden toys etc. The company was found in 1932 by Ole Kirk Christiansen. Recentperiod is mainly working in toy manufacturing. LEGO was a strong company which wascovering a large market but as the time passed, the company started facing a large competition inthe market and hence it started analysing the market, making strategies, understanding marketand consumer behaviour as well in order to sustain in the market for long period of time. Thefollowing study will disclose the key drivers of innovation that are contributing to the success ofcompany, it will discuss the strategies, innovation framework, and also will analyse the differentapproaches following by LEGO. This assignment will also analyse that how application of BlueOcean Strategy is attributing towards the success of the company. This study will also analyseand evaluate different approaches which are helpful in shaping the entrepreneurial vision andidentifying the opportunities of the company. The study will develop a creative, innovativethinking and analytical skills as well. This study will cover appropriate research tools, modelsand frameworks in support of analysis with appropriate examples. Task A, contribution of key drivers to the success of LEGO.Value of business can be increased by bringing innovation in the business. Innovation can beboth threats and opportunity to the business. Market changes are quite uncertain andunpredictable. If the innovators of the company could predict the market changes right and makeinnovation accordingly, it will become a opportunity for the company. On the other hand, wrongprediction could be result on the failure of business . Traditionally LEGO was manufacturing fire station, games which were reflecting theclassic theme. But as the time passed, taste of costumers changed and due to change in marketbehaviour LEGO has to develop innovative products which could satisfy the consumer needs andattract maximum consumers as well.Key drivers of innovation contribution to the success of LEGO are as under: At the time when LEGO needed innovation they first restructured the company and hireda new CEO. As a result, LEGO got a new direction and appropriate innovative plans for thesuccess of business. Presently, LEGO has reached in the list of over innovators in video games1

manufacturing. Now it launches new innovated products frequently and attracting more andmore customers towards the company's products (Chrisman, 2015). Innovation is not an option for any company. But it is a necessity of the company inorder to play well for the long period of time. Innovation includes product innovation, change instrategy, methods, cost cutting, etc. for effective innovation LEGO appointed a team which havea full focus on understanding the market changes and innovating new ideas to overcome and facethe changes efficiently. Recently, company has developed low risk, low cost innovation practicesin order to earn maximum profit for the business. At starting stage LEGO adopted a strategy that it will do innovation at small scale withsmall budget in order to reduce the risk of failure. LEGO avoids mistake of innovating all thingstogether. Rather, they create a prototype at minimum level and bring the new product at smallspeed. This strategy is cost effective and having low risk as well. The R&D drives changes toensure that their new innovating ideas are working well and are being accepted by the consumersin the market (Ciganek, Haseman,. and Ramamurthy, 2014, pp.278-297). LEGO has brought a new idea that allows its consumers to design their own sets. Itprovides an online platform to its customer to give suggestions regarding innovation. Companyanalyses all the suggestions and brings the best innovation in the market. This open innovativetechnique helps the company to employ everything via internet to peer selection and tempt itsfans for contributing in the new design and innovative ideas. It also helps the company toenhance the interest of consumers towards the company. LEGO realised that girls are not attracting towards the brand's product. As 90% ofLEGO's customers were boys. It was just because the games designed by the company were asper the taste of boys only. Both girls and boys have different taste while boys love strongcharacters, girls likes to use their own sets for role playing. After that company launched a linecalled LEGO friends. Through this line, company expected to double the sale in the year. But thecompany made triple sale in the year of launching. Hence, this idea was a key driver whichcontributed in the success of the company (Reichardt and Rogge, 2016, pp.278-297)At starting level of the company, LEGO didn't make any large innovations, rather, itfocused on building reputation of the company, maintaining a good quality of products, etc. as itthe company brought changes at small scale, any failur barely effected the brand's image. Thisdriver helped the company to have mastery in doing experiments cheaply, quickly. Also, it2

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