Lego Case Study

Telvis Thompson

9/14/16

LEGO

1.) What is your recommendation to LEGO in order for the company to institute Professor Robertson’s guidance system?

To properly implement this guidance system LEGO needs a person to organize them. It seems as though they are taking ideas without even thinking and just trying them to see if they will work, and if not “O well, next idea”. Like it said in the case, “LEGO’s innovation engine had launched them down a path at high speed, without the ability to navigate the curves in the road ahead”. Prior to them realizing that they needed a guidance system, it seems as though LEGO was just taking desperate attempts to hurry and get themselves back on track. What they need to do is slow down and think, and with every innovative idea answer these questions, “Will this appeal to the consumer’s needs? Will we have a positive return on investment? Overall will this work? To answer these questions they need to first do some marketing research.

2.) In your opinion what are the strengths that LEGO could build upon? (Provide at least two)

With all the changes that LEGO made it and the new products, it would seem as though they had what they needed to build themselves up. It was a surprise when the case said that they almost went bankrupt. It is said in the case that LEGO’s popular product the “Mindstorms” was a strength and could be built upon. Another strength that LEGO has is their innovation system. They hired creative people internationally, from Italy to Japan to the US for their “concept lab” new products center to increase diversity and stimulate creativity. These helped with innovation, but they can build upon this as well.

3.) Likewise, what are some of LEGO’s weaknesses in which there is room for improvement? (Aim for at least two)

While reading the case, it seemed as though LEGO didn’t have too many weaknesses. Their strategies seemed to be good ideas but they still seemed to lose money. One weakness that the case presented dealt with them being desperate in getting back on track. It seems as though LEGO were going with ideas without thinking ahead. Another weakness that I came across was their inability to shift to consumer needs. They conducted research and proved that kids these days were starting to get bored with LEGO type toys and were getting more into video games at an earlier age than the previous generation. At the time that the information came to them they remained idle with this situation; but what they should have done was made whatever arrangements were needed to develop another product line in the video game industry.

4.) Refer to chapter two of the textbook (or slides),