Legos Essay

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Ansoff’s matrix to see how the business has moved over the last 20 years: - Market penetration: working hard on promotion to build sales of the basic Lego product range in its traditional markets of Europe and America. - Product development: Lego is much more heavily based around product lines that have been developed to tie-in with film franchises like Harry Potter, Star Wars, Indiana Jones and Pirates of the Caribbean. - Diversification: Innovation is often high risk, and Lego have stumbled at least twice. First was a costly move into theme parks, from which the company has retreated. Then in 2011 was the much hyped online multiplayer Lego Universe game, which has just quietly been folded too. But elsewhere Lego have found success with Nintendo DS, PC and console games. - Market development: Here’s where the company has tried taking an existing product, but tried to develop a ‘new’ market that is specific to girls. ------------------------------------------------------------------------------------------------------------------------------------------ Discussion and evaluation of strategies adopted by Lego during 1995-2009 Strategies adopted by Lego 1995-2009 Strategies are processes businesses carry out, the directions they take and the decisions they make to reach their goals (Thompson & Martin, 2005). Strategic models such as the Ansoff matrix can be used to aid companies in choosing a suitable growth strategy. The Ansoff matrix proposes that a company’s growth strategy depends on whether it markets new or existing products in new or existing markets (Ansoff, 1957). The diagram of the Ansoff matrix below details what growth strategies are most suitable depending on whether the company is selecting new or existing products/markets. Other types of strategies, corporate-level strategies, are outline by Hill & Jones (2007). They explain

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