Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Essay Sample The landscape of the current toy market with the proliferation of electronics toys and games is constantly changing. Children are now growing up in an entertainment economy saturated with play systems which are outcome driven. However, Lego, a traditional toy maker has stick to its core values of creativity, imagination, learning, fun and quality in it products.
Identification of key issues, justification and evaluation of the choice of analytical models?
Introduction Lego group is not new in the toy industry and they are well aware of the requirements of the target market.
Lego group is not the same as they were in the past. Brand management and reputation building is well taken care by the management of Lego group. There have been ups and downs for Lego group but every time they have emerged stronger than what they were in the past.
In the yearthey suffered due to the financial crunch but that is not the case anymore. Afterthe management of Lego decided to use the efficiencies efficiently. After the crisis, the company decided to look for ways by which they can get back the competitive position in the market and at the same time, they also wanted to regenerate the profits which they use to regenerate in the past.
In the past, the management use to continuously look for ways by which the target market can be satisfied with new ideas but that is not the case now.
Now the company looks for ways by which creative ideas can be implemented and at the same time, they are also willing to generate good profits so that the company can survive in the market Schultz Resources and capacity of Lego Production Facility The production capacity of Lego before was huge as they had different types of machineries for manufacturing different types of toys.
The innovation team had to just innovate new toys without considering the production facility required or the revenue that will be generated. Lego had approximately suppliers and hence, they were spending huge money on maintaining the suppliers. Lego group decided to change the strategy which they were following till date.
They decided to start with outsourcing the production responsibility rather than that of having it in-house. They outsourced the production responsibility to Mexico and Czech Republic. This helped Lego to reduce the production cost and at the same time, the time required for the toys to reach from manufacturing factory to the store shelves was just days Oliver Energy consumption Fossil fuel energy was used in the past for the purpose of manufacturing but they realized that it is very expensive.
Lego group has started to use renewable energy sources so that they can save money.
Apart from the usage of renewable energy, they have decided to optimize on the usage of electricity. The group has started to make investment in intelligent lighting, hydraulic pressures are replaced and optimizing the usage of compressed air system.
Supply chain management Lego was initially reaching the customers through small retailers. Small retailers use to purchase small quantity from Lego and hence, Lego was spending lot of money in reaching the retailers. Lego also had 5 logistics centers in Denmark, Germany and in France.
Maintenance of these logistics centers were also adding to the cost center of Lego. Later on Lego decided to tie-up with big companies like Wal-mart and other retailers who will be buying the toys in bulk. This helped the organization to reduce the cost of transportation and at the same time, these retailers had their own logistics center.
Lego also decided to close their logistics center and hence, their cost was reduced.
Along with the external logistics, the internal logistics of the organization was also improvised. Employees who were travelling between the production center and administration center were asked to use bicycles and not cars. This helped the organization to save energy and the negative impact on the environment was also reduced.
Recycling and waste management Recycling was one of the strategies that were used by the management of Lego group so that they can reduce the impact that they are creating on the environment.
A system wherein the waste is recycled and directly returned to the production machinery was implemented. This saved time and also the raw materials were used efficiently.
The wastage due to handling was reduced. The production cost reduced drastically due to the recycling process that was undertaken Aanderson High quality and value product development Quality of production Lego toys are known for the high quality bricks that they produce.
The bricks can be used to create anything that the child wants. Apart from that, the bricks will remain intact even when it is thrown up in the air. In fact, it was seen that Lego bricks was passed from one generation to that of another. A special plastic was used to manufacture Lego bricks.LEGO possesses non-substitutable resources such as intellectual property, designing capabilities, know-how and industrial insight.
The company is competing with a great number of toy brands which provide consumers with substitutions for LEGO’s products.
The LEGO Group Introduction Exploring strategy of the LEGO Group, first of all, I need to identify its present position, which through using the TESEL framework, by analysing its macro- environment.
After that, I will use the value chain framework to examine its strategic capabilities, and then, I. The sort of resources and capabilities that enhance Lego’s ability to add value might include: Design expertise—Lego can make a better toy of this sort than another toy manufacturer Costs—Lego can make such a toy more cheaply than another toy manufacturer, perhaps because they can utilize (as the case describes) parts that they have %(1).
Resource based view is well implemented at Lego, world’s popular toy manufacturer. In the year , they suffered due to the financial crunch but that is not the case anymore. After , the management of Lego decided to use the efficiencies efficiently. What are Lego’s most valuable resources and capabilities at the turn of the century?
Essay Sample The landscape of the current toy market with the proliferation of electronics toys and games is constantly changing. Learning More About Creativity And Innovation From LEGO. giving the company more ways to compete and opening the door to unlimited building capabilities.
Pull-along wooden duck by LEGO same aims and fully understand LEGO’s business strategy and how to achieve strategic goals using the other team’s resources.
As mentioned, LEGO’s.