Case Study 1-1: Lego – There is no time limit on this case…

Case Study 1-1: Lego – There is no time limit on this case assignment. This is for the Lego case study in Chapter 1. Obviously, you must read the case in its entirety. But, also read the chapter as well. The case requires ” ” responses to 4 questions. A “short answer” response is a minimum of 6 good sentences. Remember that in addition to you gained from the readings, this is a . To receive full credit for this case assignment, you are expected to cite scholarly sources to support your opinion or assertions. A cover page is NOT required. However, provide an APA style reference list at the end of your response to the last question; only one reference list is required that covers all responses. Textbook: Pearlson, K., Saunders, C., Galletta, D. (2016). Managing and Using Information Systems: A Strategic Approach,6th ed. Burlington, MA: Wiley ISBN: 9781119244288

Lego, the Danish toy company, has been a successful and well-known brand for decades. This case study explores the challenges and opportunities that Lego faced in the early 2000s and the subsequent turnaround of the company. In order to understand the context and issues faced by Lego, it is important to examine the key factors that contributed to their decline and the strategies they implemented to regain their position in the market.

Firstly, Lego faced significant challenges due to changes in consumer preferences and technological advancements. In the 1990s, the popularity of video games and electronic toys greatly impacted the demand for traditional toys like Lego. Children were increasingly drawn to digital entertainment, which posed a threat to Lego’s market share. Additionally, Lego’s manufacturing and supply chain processes were inefficient and costly, further exacerbating their financial woes.

To address these challenges, Lego implemented several key strategies. One of the main initiatives was to refocus on their core product, the Lego brick. They recognized the enduring value and appeal of their brick-based play system and sought to leverage this strength. Lego also introduced themed sets and licensed products to tap into popular franchises such as Star Wars and Harry Potter. This move helped to revitalize interest in the brand and attract new customers.

Furthermore, Lego underwent a significant transformation in their manufacturing and supply chain processes. They implemented a lean production system, which improved efficiency and reduced costs. This enabled Lego to respond more quickly to changing consumer demands and adjust their production accordingly. By streamlining their operations, Lego was able to regain profitability and improve their competitiveness in the market.

Another important aspect of Lego’s turnaround was their focus on innovation. They recognized the need to adapt to the digital age and engage with their target audience in new ways. Lego embraced technology and developed digital experiences, such as video games and animated movies. This not only allowed them to reach a wider audience but also enhanced the overall Lego brand experience.

In conclusion, Lego successfully navigated the challenges of the early 2000s through strategic initiatives focused on their core product, manufacturing processes, and innovation. By refocusing on their strengths, improving efficiency, and embracing technology, Lego was able to regain their position as a leading toy company. This case study highlights the importance of adaptability and strategic decision-making in a rapidly changing business environment.

References:
Pearlson, K., Saunders, C., Galletta, D. (2016). Managing and Using Information Systems: A Strategic Approach, 6th ed. Burlington, MA: Wiley.