Case Studies: Lego: Redefining the Boundaries

Case Studies: Lego: Redefining The Boundaries

CASE STUDIES: LEGO: REDEFINING THE BOUNDARIES

Introduction:

Nowadays every company is trying to bring some new or upgrade the current innovation strategies in order to compete in the market (Birkinshaw, & Goddard, 2009). For the successful implication of the innovative strategies effectively, it is essential for the company to build the innovation management (Birkinshaw, 2010). Management innovation is the implication of the management techniques, process and practices which are new and could help the organization in accomplishing the organizational goals (Birkinshaw, Hamel, & Mol, 2008). In this essay report, the case study of the Lego Group is being discussed to analyze how the company implements its management innovation in the company and how it redefines its organizational boundaries.

Background of the Company:

Lego is a Denmark-based toy manufacturing company which was founded by the Kirk Kristiansen in 1932. A headquarter of Lego is located in the Billund, Denmark. The Lego group is making the toys for children in order to enhance and developed the children’s creativity. Currently, Lego is now providing toys and learning material for children in 130 countries and above (Lego, 2015a).  Moreover, Lego not only expand its business worldwide but it has also expanded its product line. Lego has now provided a park namely LEGOLAND for the children and parents (Lego, 2015b). Lego has known as the most known innovative toy making company around the globe.

Summary of the case study:

Lego is a well-known and privately owned toy manufacturing company.  The Lego toys are being used worldwide. However, when the Lego group changed its marketplace and came out with the new and effective technologies, it starts facing challenges. In 1990s, the concept of digital gaming was rising which make the Lego think that whether the kids in the future will be buying the toys or not. When the company started investing in the technologies, it has no clear idea about what the usage because the company was lacking in the expertise that can handle the technologies.  Additionally, company invested too much in buying the licensed products which resulted in the unstable turnover of the company. This happened because the company became dependent on the release of the movies such as Harry Porter.  

However, these all crisis and challenges force the company to take some serious actions and find the solutions for it. These all issues require the innovation management within the company. Hence, the head of the new management team Jorgen Vig Knudstorp, took some effective steps regarding the innovation within the company. With the aim of bringing innovation into the company, Lego put much emphasis on the supply chain and building the strongest relationship with its end consumers. Moreover, it captures the new opportunities by implementing the digitalization.