Lego

Its what you make it
BYMEDHA JAIN J047

CHETNA BHARDWAJ J050
ABHIJEET KUMAR J051
ABHINAV AGARWAL J052
Introduction
LEGO is a leading company in the toy-making industry and the sixth-largest
enterprise in the field. the word lego is an abbreviation of two Danish
words, leg godt, which means play well.
The Danish company was founded in 1932 by Ole Kirk Kristiansen, whose small carpentry
workshop failed at providing wood supplies
Brick-toy manufacturing was launched in 1958
Mission: Invent the future of PLAY

Vision: Inspire and develop the builders of
tommorrow.
Values:
Imagination
Creativity
Quality
Learning
CARE!
THE LEGENDARY BRICK
(British Patent
N.529,580)
Thesewere designed by Hilary Page. In 1939, Page had applied for a patent on hollow
plastic cubes with four studs on top that allowed their positioning atop one another
without lateral movement.
Lego purchased a plastic injection molding machine in 1947.Afterwards it starting
experimenting with it.
The brick in its present form was launched in 1958.
The interlocking principle with its tubes makes it unique, and offers unlimited building
possibilities.
PRODUCTS OFFERED
BY
Traditional products
Digital products
Brief History
Simple, block-shaped toys have been around for hundreds of years, but it took a
20th-century Danish genius named Ole Kirk Christiansen to invent the interlocking
pieces we know today as LEGO bricks. It all started in 1932 in the village of Billund,
long before LEGO had achieved world domination as a brand.
Three generations:
Ole Kirk Christiansen
Godtfred Kirk
Christiansen
Kjeld Kirk Kristiansen
Facts
A LEGO brick from 1958 would still interlock with a LEGO brick made today.
The LEGO name was created byusing the first two letters of the Danish
words "Leg" and "Godt,"meaning "play well.
The LEGO Group patented the LEGO brick with the familiar tubes inside and
studs on top on 28 January 1958
LEGO DUPLO bricks are eight times the size of original LEGO bricks yet
they both connect together.
You can combine six of the eight-studded LEGO bricks in 915,103,765 ways.
The world's largest LEGO tower is 94 feet high and contains over 500,000
bricks.
There have beenfiftyLEGO video games.
Legoland, LEGOs theme park chain, has seven locations worldwide.
The largest commercially produced LEGO set is the Taj Majal, with 5,922
individual pieces.
Recent scenario of LEGO
In 2012 the LEGO Group increased its revenue by 25% to USD 4,040 million nearly triple
the sales of 2007
More than 60% of the LEGO Groups sales are new launches every year.
The company has 5,000 employees around the world, and its main facilities are located in
LEGOLAND in Denmark
The company has 12,500 warehouses and more than 11,000 suppliers.
In addition to the production location in LEGOLAND, production sites are located in

Switzerland, Czech Republic, the US and South Korea.
It costs $1 (61p) to manufacture each kilo of its plastic bricks, which it

then sells on for $75. That goes some way to explaining why Lego has a
margin its rivals would give their left arms for.
Innovation Process
S- Curve
SWOT analysis
Strengths
1.Incorporateseducationalfeatures to develop key skills in young children
2. Strong brand name across the world in over 55 countries. Lego enjoys 80% of market
share in the North American market
3. Many places use cars from the Automoblox range to demonstrate modern car assembly
techniques to children
4. Encourages goal oriented play and problem solving
5. Strong product portfolio
6. Lego based theme parks are extremely popular tourist destinations
7. The brand has also diversified into video games, TV and movies, merchandise etc
8. Top of the mind brand recall owing to TVCs and extensive advertising
9. The strength aspects present a vast measure of imprinting the feature of durability
along with longevity with the product line.
Weakness
1. Imitation of products and brand name is a concern
2. Intense competition means high brand switching and also loss of market
share to online game
Oppurtunity
1. Organize competitions in schools
2. Diversify more into other segments
3. More branding exercises to reach out to newer segments
Threats
1.Video games
2.Cartoon channels
3.Internet
4. Outdoor games
5. Mega Bloks introduced larger brick sizes and hence were preferred by
customers
Problems faced
In the 1990s Lego was facing bankruptcy
With the arrival of the video games age the plastic bricks were seen as
pass and children were ignoring them.
Competitors
In September 2014, it snatched the "world's biggest toymaker" crown from
Barbie maker Mattel.
Comparison

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What are some of the core values of LEGO?

How did LEGO get its start?

Its what you make it

BYMEDHA JAIN J047

Mission: Invent the future of PLAY

THE LEGENDARY BRICK

Recent scenario of LEGO

In addition to the production location in LEGOLAND, production sites are located in

It costs $1 (61p) to manufacture each kilo of its plastic bricks, which it

1.Incorporateseducationalfeatures to develop key skills in young children

4. Encourages goal oriented play and problem solving

5. Strong product portfolio

6. Lego based theme parks are extremely popular tourist destinations

1. Organize competitions in schools

2. Diversify more into other segments

3. More branding exercises to reach out to newer segments

In the 1990s Lego was facing bankruptcy

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