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LEGO case study - Coggle Diagram
LEGO case study
background
a private company based in Denmark and was founded by Ole Cristiansen
a toy brand of plastic interlocking brick
success in the 1980s and 1990s
elements of success
core product
consumer can use highly versatile component to creat their imaginative time
growth of the company
geographical growth
growth of the toy sector
diversified development
Legoland、Lego Mindstorm、robotic bricks、TV program、movie
crisis
reason
external environment
increased price competition in the toy industry
internal environment
the shape and color of Lego bricks increase manufacturing costs
result
Lego toys become expensive,sales began to stagnate
diversified development failed
turnaround
Strategic Positioning
cost leadership
outsource manufacturing to China bur only for a while
implement a more constrained and focused model of innovation
Strategic Renewal
focus on Lego brick and the Lego system of play
many unrelated diversifavation moves were reversed