LEGO

Business Logistic Assignment - Lego



Business Logistic Assignment - Lego

Introduction

Company Background

LEGO is a Danish company known worldwide for its production of games that consist of elementary assembly plastic bricks. The company was founded in 1932 at the initiative of the Christiansen family(Antorini, Muñiz & Askildsen, 2012, pp. 210-213). Since its inception, the company has opted for the toy design contributing to the development and learning of children. Its policy is based on three core values: creativity, imagination and belonging.

LEGO has been a strong rise up to become one of the leading toy manufacturers. But from 2000 LEGO began to post record losses (USD 250 million in 2003). Diversification of the group out of its core business, brick, LEGO has lost its traditional consumers(Kozinets, Hemetsberger & Schau, 2008, pp. 339-54).

On the UK market, LEGO has also suffered significant losses from a net profit of £ 16 million in 2002 to £ 6,000,000 in 2010. LEGO France faces strong competition in the market for toys and games, on the one hand competition from other UK toy manufacturers. Also LEGO faces to live up to the range of Mega blocks group whose prices appear to be 15-20% cheaper. In terms of communication, the company Mega enjoys a significant presence in the mass media while that LEGO is much more restricted, limited to the Christmas period. Indeed, the group rather use direct means and personal channels regarding communication.

Operations Management and Process Flows in the Case Company

Target market

LEGO product is trying to act as a good partner to play with the children who aged from 3 to 9 years old. Please note parents will purchase the product instead of end-customer. Therefore, we should position those people who are around 35years old. This group of people usually has stable family relationship and income. However, I recommend that LEGO firm should try to arouse the children's interest thus ask their parents to purchase the product(Antorini, & Muñiz 2013, pp. 21-8).

Customer needs

We should make the product not only meet the end customer's needs but also create a simple life for consumer. Parents sometimes feel tired after they finish eight hours work, they hope to have time for rest or relax (Rollins, 2013, pp. 133-135). Parents will have time to do something they really want to do while children will have a friend to play with them.

Industrial Environment

External Environment

The organization carefully watch and respond to the external environment will lead to flexible compete with other firms. There are five interrelated forces usually effect on a firm's marketing system.

However they are totally not equally influenced to a firm's marketing programs. Marketers, who follow and use technology, will discover that it creates and lead directly to new market forms and opportunities. For example, LEGO clown is a new product with advanced technology will change the people's lives in one area. We can find the new technologies will bring in new opportunities for LEGO Company(Glaveanu, 2010, pp. 48-67). Except this, the free trade agreement creates the good business ...