Lego Case Write-Up Essay example

628 Words May 20th, 2014 3 Pages
Chapter 1 LEGO Case Write-Up
My key takeaways are 1) Company should combine business strategy, organization strategy and information strategy together in order to make a good innovation. 2) Keep uniqueness and develop new product to attract new segments is very important in a hypercompetitive environment. 3) A strong information management system can be very helpful.

1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?
After Knudstorp changed Lego’s business strategy changed, Lego changes its organization structure. They encourage product innovation and sales by offering incentives. They decrease coast by move manufacturing factories to cheaper
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Secondly, Lego is always known as unique kind of toy, and they encourage innovation and creativity to make them more unique, such as create new products based on themes of popular movies. Also, after searching, I found that Lego have produced some limited edition toys such as “Star War II”, this is definitely a good move to improve their advantage on uniqueness. This is the differentiation strategy. Finally, Lego work very well on differentiation focus strategy, they seek to distinguish their products within the segment. Lego design new series of products based on the themes of movies to attract adult customers. At the same time, they design a line of Legos aimed at girls.

3. Are the changes implemented by Knudstorp an indication of hypercompetition? Defend your position.
Yes, the changes are indications of hypercompetition. First, Lego encourage innovation and creation of their products; also reduce the development time by 50% so that they can follow the change of the customers’ demand. They also expand into the virtual world and movie-making business. All these changes indicate that Lego is working on predicting new opportunities and exploring new markets. They move aggressively and have countermoves by organizing employees to be more productive and encouraging them to create more competitive advantages of Lego.

4. What advice would you give Knudstorp to keep Lego competitive, growing, and relevant?
My advice for Knudstorp are firstly,

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