Research on Lego’s Foreign Market Strategy †MyAssignmenthelp.com

Question: Discuss about the Research on Legos Foreign Market Strategy. Answer: Lego Company or the Lego Group, owned by a Danish family is based in Billund, Denmark. Ole Kirk Christiansen founded the company and is best known for the manufacture of Lego-brand toys consisting mostly of interlocking plastic bricks and it operates several retail stores and amusement parks. The initial strategy of LEGO was to provide packing facilities and being responsive to the arrival of demands for orders. LEGO aimed to improve the production and packing facilities continuously. It was only due to the companys effective setup that they managed to supply orders to others (Andersen, Kragh and Lettl 2013). The organisational structure of the company required heavy scrutiny of internal consultants consisting of logistic managers, financial managers as well as marketing employees (Antorini, Muiz and Askildsen 2012). The strategy of the company received a major change after the entry of Knudstorp. The company aims to make a global impact and allows the management of businesses according follow the principles aimed at creating value to the stakeholders (euromonitor.com.2017). Moreover, LEGO is a subscriber to the United Nations Global Compact since 2003. The staffing policy of LEGO consists of appointing candidates who can succinctly answer the queries of the customers and understand the detailed description of their orders. The staffs are hired based on their ability to meet the requirements and the necessary job skills. Therefore, potential employee testing and social skills are also tested (Feloni 2014). Being continually focussed on driving growth, the company even manufactures Childrens wear, movie concepts, books and TV ideas are even incorporated. The innovative ideas has helped it gain extensive sales margins and the demands rates catapulted to huge heights that the company contemplated lowering of its sales (Marketline.com 2016). The companys production is pre-occupied in the core market and detailed focus is made on innovative product development which has led to a massive success lately. The areas of production being close to the core markets topographically, helped the company respond to the demand from consumers and customers alike. The subsidiaries of LEGO performed exceedingly well thus helping Legos growth. The companys expectations for robust growth were met in more than ten successive years (Schlagwein and Bjrn-Andersen 2014). The LEGO Group has an organisational complexity which is flat and has a divisional configuration. The tasks and their appointments were divided into various groups reporting to the top managers in the respective divisions or teams. The company aims to maintain its position as a top company and hence adopts the Defender mentality. The key developments that led LEGO towards its dominance in the global market include the cutting of costs. This has given the company importance to the educational toy image, from an effective strategy to increase sales. LEGO focussed on toys, not only to concentrate on the learning aspect but also on the recreational value. The company has always evolved its policies according to the needs of children all around the world (Antorini, Muiz Jr and Askildsen 2012). Several marketing strategies has reported for its success. These include long term business planning, strategic partnerships and joint ventures, the organic growth through the development of new products (LEGO 2013). Other areas that the company focuses are market segmentation, positioning and targeting policy while scaling the emerging market growth (Frick, Tardini and Cantoni, 2014). It can be recommended that the customers should be more involved with the company and help promote brand loyalty. It should also engage staff to make the company more socially active. Thus, it can be concluded that the story of LEGO is extremely inspiring for the competitors as well as other companies who are striving for global recognition and enhancing their importance across the globe. References: Andersen, P.H., Kragh, H. and Lettl, C., 2013. Spanning organizational boundaries to manage creative processes: The case of the LEGO group.Industrial Marketing Management,42(1), pp.125-134. Antorini, Y.M., Muiz Jr, A.M. and Askildsen, T., 2012. Collaborating with customer communities: Lessons from the LEGO Group.MIT Sloan Management Review,53(3), p.73. euromonitor.com. (2017).Euromonitor International. [online] Available at: https://http//: www.euromonitor.com [Accessed 31 Jul. 2017]. Feloni, R., 2014, How Lego Came Back From the Brink of Bankruptcy [online] Available at: https://www.businessinsider.com/how-lego-made-a-huge-turnaround-2014-2 [ACCESSED 24 July 2017] Frick, E.L.I.S.A.B.E.T.T.A., Tardini, S.T.E.F.A.N.O. and Cantoni, L.O.R.E.N.Z.O., 2014. LEGO SERIOUS PLAY applications to enhance creativity in participatory design.Creativity in Business. Research Papers on Knowledge, Innovation and Enterprise,2, pp.200-210. LEGO 2013, OUR MISSION: TO INSPIRE AND DEVELP THE BUILDERS OF TOMORROW. [Online] Available at: https://www.lego.com/en-us/aboutus/news-room/2013/february/annual-result-2012 [Accessed 25 July 2017] LEGO SERIOUS PLAY applications to enhance creativity in participatory design.Creativity in Business. Research Papers on Knowledge, Innovation and Enterprise,2, pp.200-210. Marketline.com, 2016. COMPANY PROFILE The LEGO Group Available at https://www.marketline.com[Accessed 25 July 2017] Schlagwein, D. and Bjrn-Andersen, N., 2014. Organizational learning with crowdsourcing: The revelatory case of LEGO.Journal of the Association for Information Systems,15(11), p.754.