Lego Case Study

In: Business and Management

Submitted By nsand4
Words 1257
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Lego is one of the multinational organizations that is operating its business in more than 130 countries. It is the 6th largest producer of children toys in the world. With the increase of competition and changing technology Lego had huge losses in 2004, the company suffered a situation of bankruptcy. Then as an organizational change to put the organization back on track Jorgen Vig Knudstorp has been appointed as the CEO of Lego. The main challenges for Knudstorp is to provide a good service to its unhappy customers and to keep the production team on track. But its innovative strategy has changed the face of the organization, which made it one of the top producer of toys. The company implemented and organization change in its structure and culture to achieve its goals. Some of its organizational changes include making new innovative products and making changes to existing products to meet the needs of the customers. Lego has also focused on the strengthening customer relationship and maintain a close contact with its customers which can help in knowing their needs better. A perfect example of this is Lego.com in which customers of all ages can experience the values and ideas of Lego through activities and games. Focusing on the requirements of the customers has made Lego a service driven organization and helped in gaining a competitive advantage in the market. It has targeted all channels to market to reach its customers like selling its products directly to the customers without any third party by selling it at the theme parks. It also used the market of third parties like wholesalers and retailers, appointed selling agents and also maintained an e-commerce website (Lego.com) to sell its products. The unique idea that made customers close to Lego toys is that to provide a chance of learning while playing.
To reduce the cost of investment for the products…...

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