Lego Company Case Study

The Lego Company is an exceptional company that offers quality products. Over the years, the company failed to keep up with the competition and failed to be innovative. There are many great products that were developed and great talent within the company. I do believe that the problems were created by the company not focusing on their core products and instead extending their product lines into apparel, theme parks, and general merchandise. The company had developed too many products and had to deal with the logistics issues. There were problems with the innovation capabilities and the supply chain. The cost of production was taking away the companies’ profits.

Innovation is very important for Lego Company to succeed. The company had all the principles it needed to be innovative which consist of” Being customers driven, hire creative team members, explore all different avenues of innovation, look outside of the box, and create an innovative culture. Even though the company seemed to be on track with everything still it was headed towards bankruptcy. There were several key points that the company missed during the mature stages of the organization.

I believe that there can be several things that could have been done differently. Some of the things that could have been done consist of supply chain that was out of date. The customer service needed improvement and the products were not available in markets that were profitable to the company. “At the Lego Group, for instance, it took many years of underperformance before the company realized that the supply chain was a major source of its difficulties. What made those problems especially hard to identify was that they grew out of the company’s core strengths: its capacity for innovation and its commitment to quality.” (Oliver, 2007).

The employees were able to dream up products for the company to make. However, in the process the costs were not taken into consideration of producing so many new toys or the cost of the materials. In addition to the materials were the costs of production and then the products would sit on shelves and not be sold. There were so many different Lego pieces