Lego Essay

3118 Words13 Pages
Lego In 1932 Lego was established by Ole Kirk Christiansen, in Billund Denmark. The company started with the wooden toys designed by Christiansen, and in 1958 the Lego Brick was introduced. The bricks are made up of interlocking tubes that offer unlimited building opportunities, feeding the company’s purpose to stimulate creative and structured problem solving, curiosity, and imagination. Since then the company had grown into a major multinational corporation, and in 2009 it became the world’s fifth largest manufacturer of toys in terms of sales. Competitors within the toy market (2009) included Mattel, Hasbro, and Namco Bandai. But thanks to its “Only the Best is Good Enough” motto, the company had remained competitive for most of its existence, allowing it to be awarded the “Toy of the Century” by both Fortune Magazine and the British Association of Toy Retailers. Through its innovative practices, spanning over the past several decades, The Lego Group had developed a wide range of products to support its vision to “inspire children to explore and challenge their own creative potential”. With over two hundred product offerings, being sold in more than 130 countries, the company had also increased in its complexity. After approximately 70 years, Lego began its struggle to survive the company’s largest internal financial crisis, and in 2004 the pursuit in rapid cost-cutting sourcing advantages, with plans to license out as much as 80 percent of its own production was implemented. Problem Statement Overtime Lego had developed some core issues that lead to its internal crisis, in 2004. Problems consisted of, but were not limited to, increased variation of the colors and shapes it offered, challenges in its ability to navigate its network in order to ensure the right components were in stock, increased inventory levels due forecasting errors and seasonal demand,

More about Lego Essay

Open Document