MGTO-30120
Strategic Management
LEGO (A): The Crisis
Please complete a Value Chain Analysis for either (only one):
 Change during “The Growth Period That Wasn’t” (1993-98)
 Change during “The Fix That Wasn’t” (1999-2004)
In the Value Chain, provide the following:
 Product scope changes (in grey box to the side)
 Changes in activities LEGO underwent during the time period (at least 6 changes).
For example,
o between 1993 and 1998, they added lego.com
o between 1999-2004, they repositioned preschool product line under a new
brand name
What is one reason you believe the LEGO Group has come to the edge of bankruptcy?
I believe a reason why LEGO group came close to bankruptcy is because has time flew by
technology has advanced substantially and it became the better alternative than playing with
bricks. Kids would rather get an electronic device than go and play with bricks for hours. This
causes a decrease in sale causing them to produce less profit each year.
What is one recommendation you have for Jørgen vig Knudstrop?
One recommendation I have would be to come with a completely new approach. We are seeing
that electronics are the future. Instead of trying to beat them, join them instead. Create an app
that is accessible for smart phone where kids can play. This will increase revenue and market the
LEGO brand. When people play the game, they will instantly think of LEGO and this will also
allow LEGO to remain competitive with their competitors who are trying to expand their
reputation. Be the first to jump on it before, a competitor takes the idea and profits off it.
Do not put your name on this document, the system will record who submits which paper. This
document will be viewed by two of your classmates.