Watch the video Brick by brick at https://www.bloomberg.com/news/videos/b/4a56e664-4427-49fc-82fb-2d5e4a6f4502 and analysis the video.
• General aspect of the toy industry
o Growth
o Seasonality
o Competitors
o Technology complexity
o Type of industry
o Safety regulations
o Future of the industry?
- Baby Boomers vs. Generation X vs. Millennial Generation?
• General information of the company
o Location
o History (wooden toys to plastic bricks)
- Evolution of the firm
o Pre-strategy change company situation
- 3rd generation CEO family member
- Company losing $1MM per year. Why? Too big?
- Company lost focus of the business core
- Too much diversification?
- Too many products?
o Post-strategy change company situation
- First non-family member CEO
- Company growing at 2-digits every year
- Largest toy producer in the world
- Mattel, Hasbro out of competition?
- Re-focusing product lines
- New hires forced to utilized few components (brick pieces) for new products
Topics to be included in the written report:
1) Industry description, characteristics. Classify the toy industry in one of the 4 categories and explain.
2) Firm description. Pre-strategy situation and explain the main problems.
3) Describe and explain the applied strategy. Cost vs. Product differentiation, or both?
4) Firm description after the applying new strategy. Explain solution to the problems.
5) SWOT analysis for current situation of the firm.
a. O-T considering the Porter's 5 forces in the industry.
b. S-W considering Resource-based view
6) Future of the firm. What do you think it will happen to LEGO in 10 years from now?
7) Any topic relevant to strengthen your arguments.