Background:
Lego was found by a Danish man named Ole Kirk Kristiansen in 1932. He started with wooden toys as he was with a strong sense of craftsmanship. He then passed the company on to his son and grandson. In 1946 they bought the first plastic injection molding machine to make his toys. However, the plastic toys was not popular as people still prefered wooden toys until 1960 that Lego decided to finally abandoned wooden toys’ production to Plastic completely after the devastating warehouse fire. Nonetheless, Lego have made profit since then but in the mid 90s sales had flattered and the company was struggling and in 2003 after six years of falling sales, Lego was sitting on more than $700 million of debt.
What has led the LEGO Group …show more content…
It is because they have disconnected from its customers. The new product lines have made the customer feel that Lego is not the same anymore as it has lost its core value and it is now something else, just another toys on the shelf and nothing is special about it. The company lacks focus and did not know what its customer wants. The toys they made did not have a Lego characteristic even though they been innovating a lot. The Lego characteristic is the brick and that is what the customers want but with the new era of technology, Lego responded to the changes was not …show more content…
Because it is not what they want, thus, Lego introduced the “Bionicle” a new merchandise based on a new story of hero battling against villains that sold over 190 millions. After that Lego introduced, Lego Star War and Lego Harry Potter that became successful and in 2012 Lego launched Lego Friends for the girls’ toy market which sell twice as much of the Friends as the originally forecast. On top of that they also take a new approach into making Lego Movies which was really
Lego was found by a Danish man named Ole Kirk Kristiansen in 1932. He started with wooden toys as he was with a strong sense of craftsmanship. He then passed the company on to his son and grandson. In 1946 they bought the first plastic injection molding machine to make his toys. However, the plastic toys was not popular as people still prefered wooden toys until 1960 that Lego decided to finally abandoned wooden toys’ production to Plastic completely after the devastating warehouse fire. Nonetheless, Lego have made profit since then but in the mid 90s sales had flattered and the company was struggling and in 2003 after six years of falling sales, Lego was sitting on more than $700 million of debt.
What has led the LEGO Group …show more content…
It is because they have disconnected from its customers. The new product lines have made the customer feel that Lego is not the same anymore as it has lost its core value and it is now something else, just another toys on the shelf and nothing is special about it. The company lacks focus and did not know what its customer wants. The toys they made did not have a Lego characteristic even though they been innovating a lot. The Lego characteristic is the brick and that is what the customers want but with the new era of technology, Lego responded to the changes was not …show more content…
Because it is not what they want, thus, Lego introduced the “Bionicle” a new merchandise based on a new story of hero battling against villains that sold over 190 millions. After that Lego introduced, Lego Star War and Lego Harry Potter that became successful and in 2012 Lego launched Lego Friends for the girls’ toy market which sell twice as much of the Friends as the originally forecast. On top of that they also take a new approach into making Lego Movies which was really