Case Study Lego

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Case Study 1-1 Lego 1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? From its humble beginnings in 1932, Lego has gone from strength to strength and has grown to be a global enterprise and a household name; However, after decades of success, the toy giant began to lose footing in 1998, and by 2004 had made record losses.. In 2004Knudstorp reached out to top retailers, cut costs, and added missing links to the supply chain. Designers were encouraged to reuse components in their products, which resulted in a reduction from about 13000 different Lego components to 7000. Since each components mold could cost up to 50000 euros on average to create, this reduction saved significant expense. 2. Which of the generic strategies does Lego appear to be using based on this case study? Provide support for your choice. Throughout the case study there is emphasis on the various types of products Lego has added to its product portfolio: the Lego line aimed at girls, the lines based on movie themes, as well as the entrance in the virtual world and the engaging of adults in Lego creations as form of art. This offers straight forward proof for the differentiation strategy applied by Lego: creating a range of products that remain authentic but offer customers creativity and modern layouts 3. Are the changes implemented by Knudstorp an indication of hypercompetition? Defend your position. I believe since Knudstorp took over Legos that he uses the hypercompetition model because of the toy industry is always changing Legos is always trying to find a way to change along with it. One manager at Legos summed it by saying “the toy world moves onwards constantly, and Lego needs to re-invent itself continuously. Significant corporate re-shaping introduced new energy to the company.” 4. What

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