1. What makes Lego so unique? What exactly is their business strategy? Has that

Question

1. What makes Lego so unique? What exactly is their business strategy? Has that changed over the years?

2. How did Lego use Business Process Re-engineering to turn their business around and become the most successful toy company in the world?

3. What kind of business areas did Lego venture out to? What was the result of these ventures? Explain.

4. The video discusses ways in which Lego uses some sort of Customer Relationship Management. What were some ways in which Lego tried to reach out to their customers? Has this been successful? Why or Why not? Explain.

5. What is Lego's next challenge? In your opinion, what are some ways in which they can overcome these challenges?

http://www.bloomberg.com/news/videos/b/4a56e664-4427-49fc-82fb-2d5e4a6f4502

Explanation / Answer

Following are unique strengths of Lego:

The strategy is producing in mass manufacturing setup to reduce the cost and at best quality. This strategy changed over a period and started making end toys with innovative concepts for premium markets. Production decentralized region wise, the USA, Europe, and Asia have separate manufacturing setups to cater to the local markets. Cost is not the focus and efficiency and productivity is important to focus areas.

2. How did Lego use Business Process Re-engineering to turn their business around and become the most successful toy company in the world?

Focus on customer and decentralizing the manufacturing across the globe with better technology.The investment made on better technology to improve quality and speed in the production lines.They involved their customers in their product design. Regular interactions with customer groups such as AFOL (Adult Fan of Lego) , parents and children to understand the customer better in toy designing. Lego tied up with various outlets/distributors across the globe and focused marketing helped the company.

3. What kind of business areas did Lego venture out to? What was the result of these ventures? Explain.

Toys – concept and theme parks

London eye – Theme park in London

Madam Tussauds - making replicas of prominent personalities

4.The video discusses ways in which Lego uses some sort of Customer Relationship Management. What were some ways in which Lego tried to reach out to their customers? Has this been successful? Why or Why not? Explain.

Lego involved the stakeholders such as children, parents, AFOL and retailers etc in new product development.They involved their customers in their product design. Regular interactions with customer groups such as AFOL (Adult Fan of Lego) , parents and children to understand the customer better in toy designing. Lego tied up with various outlets/distributors across the globe and focused marketing helped the company.

5. What is Lego's next challenge? In your opinion, what are some ways in which they can overcome these challenges?

Huge scope for growth in emerging economies and still they need to focus on cost reduction in countries such as china and India. Adopt flexible supply chains and mass customization of toys through the online store is great opportunities.

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