The Lego Group Building Strategy.pdf

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1、FortheexclusiveuseofS.BHATTACHARYYASwW11169THELEGOGROUP:BUILDINGSTRATEGYPaulBiguswrotethiscaseunderthesupervisionofProfessorDarrenMeistersolelytoprovidematerialforclassdiscussion.Theauthorsdonotintendtoillustrateeithereffectiveorineffectivehandlingofamanageri

2、alsituation.Theauthorsmayhavedisguisedcertainnamesandotheridentifyinginformationtoprotectconfidentiality.RichardIveySchoolofBusinessFoundationprohibitsanyformofreproduction,storageortransmissionwithoutitswrittenpermission.Reproductionofthismaterialisnotcovere

3、dunderauthorizationbyanyreproductionrightsorganization.Toordercopiesorrequestpermissiontoreproducematerials,contactIveyPublishing,RichardIveySchoolofBusinessFoundation,TheUniversityofWesternOntario,London,Ontario,Canada,N6A3K7;phone(519)661-3208;fax(519)661-3

4、882;e-mailcases@ivey.uwo.ca.Copyright©2011,RichardIveySchoolofBusinessFoundationVersion:2011-09-01OnFebruary15,2011,world-famoustoymakertheLEGOGroup(LEGO)assembledaninternalmanagementteamtocreateastrategicreportonLEGO’sdifferentproductlinesandbusinessoperatio

5、ns.Overthepasttwoyears,numerousthreatshademergedagainstLEGOinthetoyindustry:theacquisitionofMarvelEntertainmentbyTheWaltDisneyCompanycreatedmajorimplicationsforvaluabletoylicenseagreements;LEGOhadlostalonglegalbattlewithmajorcompetitorMEGABrands—makerofMEGABl

6、oks—withaEuropeanUnioncourtdecisionthatremovedtheLEGObricktrademark;newcompetitionwaspreparingtoenterthemarketplacefromHasbro—thesecond-largesttoymakerintheworld—withthecompanylaunchinganewrivalproductlinecalledKre-O.Itwascriticalforthemanagementteamtoidentif

7、ywheretoexpandLEGO’sproductlinesandbusinessoperationsinordertodevelopacompetitivestrategytocontinuetheorganization’sfinancialsuccessanddominanceinthebuildingtoymarket.1COMPANYHISTORYLEGOfirstbeganduringtheGreatDepressionin1932,whenDanishcarpenterOleKirkKristi

8、ansenandhissonsstartedmakingwoodentoysafterthedemandforbuildinghousesandfurnituredeclined.Someofthefirsttoystheymadeincludedyo-yos,woodenblocks,pull-alonganimalsandwoodenvehicles.Kristian