Answer the questions at the end Answer the questions at the end k by Bric IN THE

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Answer the questions at the end Answer the questions at the end k by Bric IN THE DECADE some S1 amos1 billion in revenues to $5 billion (see Exhibit ween 2005 and 2015, LEGO-the nish toy company-grew siversity Press), Small-CGiroup Exencise is by the American Farm 11 and air Ouks Farms fivefold from 12.1). Redi MC ng, leveraging, and extending cal Community Barilding website competence allowed a successful revival for as floundering in the its core Dairy company that 2000s. LEGO construct a successful turnaround? To How ar this question, we first need to understand a bit nall-Group Exercise is based 2009%. Walmart vs. Target: No necession," Time, March 14 d Marketing Institute Annual t December 2008. ans istory of this Danish wonder conm ofe LEGO company was founded in 1932 by Ole er company The Kristiansen. The name is a contraction of the words Leg godt, which means "play well." did LEGO executives realize that le go in also means "I assemble." Throughout its history as had numerous formidable competitors, but Danish words Only later it has outperformed all of them. Tinkert e constructed, traditional blocks had nothing to hold them together and were too large to show much detail. oys were more Lincoln Logs were limited in what could LEGO bricks were the right balance of si satility, and durability mplicity, ver- LEGO competes for the attention of children and their parents who buy the product. Moreover, there is also a sizable group of adult LEGO fans. In the wake of the personal computer revolution in the 1990s, how- ever, the popularity of LEGO began to wane because of attractive alternatives for children such as gaming consoles and computer games. By 1998, LEGO was in trouble. The Danish toymaker hired a highly touted turnaround expert to change its fortune. Unfortunately, he had no background in the toy industry. To make matters worse, the new executive decided that LEGO'S hometown of Billund, Denmark, (with 6,000 people) was too provincial. He continued to live in Paris and either commute or run the company remotely. Things at LEGO went from bad too worse. It started hyperinnovating and diversified into too m areas, too quickly, and too far away from its core Among a whole slew of other innovation failures, the company created a Saturday morning cartoon called

Explanation / Answer

1. Various internal and external factors cause LEGO to lose revenue and face bankruptcy.

The external factors are,

The internal factors are,

2. The core competencies of LEGO are its,

In China, LEGO is associated as a “mind toy” as it was considered to boost the mental ability of children.

3. Based on the core competence-market matrix,

a. LEGO is developing new core competencies to secure and retain its current market position in existing countries through,

b. LEGO is developing competencies to create opportunities and compete in new markets like China, India and other Asian countries through,

4. Competitive Advantage

LEGO’s competitive advantage is attributed to the increasing attractiveness of millenials towards toys that actively engage children and assist on their skills development. LEGO had become a top choice when compared to its competitors due to its brand appeal arising from the open-ended patterns that encourage children to learn and improve their developmental skills.

5.

Product diversification

Market diversification

Partnerships

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