Lego Case Study

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Question 4

As the Toy markets are very volatile and keeps on changing day to day Lego must change their investment procedures and strategies regularly so that they can be the competition. They have to predict the future markets where there would be profits for their products and where they can cut on cost. They need to develop new marketing policies where they can attract consumers. The major plus point for Lego is that they market leaders for building blocks so they have monopoly over this so need to maintain this position .Another Point where Lego can increase can improvise is that they can provide a cheaper products in the market so that large segment of people can afford their products and they can increase their sales. They can create products according to geographical locations like make a product on Eiffel tower if company plans to launch a product in Paris. Company can mechanize the production process so that man power can be reduced and production can be increased in shorter span of time so company can make more profits. Company may conduct online surveys where the end consumer’s preferences can be identified and business strategies can be developed accordingly. Lego can also start their production in countries where resources are cheaper so the production costs are relatively cheaper so Lego can sell their products at a cheaper price.

References:

- Managing and Using Information Systems, A Strategic approach by Keri E. Pearlson and Carol S. Saunders, 5th Edition.

- http://www.thomaswhite.com/global-perspectives/jorgen-vig-knudstorp-ceo-lego-group/

- http://www.thelegocasestudy.com/uploads/1/9/9/5/19956653/the_lego_case_study_-_teaching_notes__.pdf

- http://www.dailymail.co.uk/home/moslive/article-1234465/When-Lego-lost-head--toy-story-got-happy-ending.html

- http://blog.bearing-consulting.com/2013/02/08/the-lego-innovation-story/