Essay: LEGO Group's Outsourcing Journey - A Case Study Analysis.

Prepare a case study analysis of  “LEGO Group: An Outsourcing Journey”?
Assignment

• Conduct a SWOT analysis on the case study company’s internal and external challenges.
• Create a case study analysis focusing on the company’s internal and external challenges through the development of short-term objectives.
• Design the functional tactics required for the company’s implementation and outsourcing proposition.
  
  

SWOT analysis is a technique used in understanding company’s strength and weakness. It also helps in identifying the opportunities and threats. It is used as a strategy tool.

Strength and weakness are often internal to the organization. The threats and the opportunities are external. That’s why is sometimes called the inter-external analysis (Ahmad, 2013).

LEGO is the fifth largest toy maker in the world. The company made segments of the products. The product it manufactured, were falling under seven categories:

• Toys for young children who were yet to start going school
  
  
• Creative building- targeted set of bricks without building instructions
  
  
• Toys based on a particular story
  
  
• Licensed products based on books and movies
  
  
• Robot kit where robot is instructed to perform various task.
  
  
• Toys for specially developed for educating purpose
  
  
• More complex and challenging games.

The portfolio of the company has the product to satisfy the demand of all the children. This will help them grow and to develop to increase its market share.

 The company did not include computer games, clothing and television. The initiative was to create new engine of growth. This increases complexities and inefficiencies. This results in confusion among employees and customers (Douligeris, 2013).

The company was scared to undertake the risk. The management was not ready to make changes as per the demand of the people.

The company was having financial crisis. The resources were not adequate to stay in the industry.

The company was having collaboration with the industry that is leading in plastic.  It had right capability and capacity and resources in terms of packaging, molding, assembling and distribution.

The treats were the growing competition in the industry. There were many players in the industries. They were not ready to listen to the demands and were stick to their old brick building. They were not ready to take risk.

Unfavorable development is the global market like changes in the exchange policy of the countries leads to increase in production and distribution cost (Gao, 2013). 

It is very important to maintain supply chain management effectively- The Company is playing in global market, faces lots of complexities. Expertise advice is necessary for proper functioning of supply chain management. Company needs a person with proper knowledge about the global market.

Building the network is very important. Good networking facilities help the company to grow and increase in market share.

Diversifying the portfolio leads to increase in complexity and in efficiency. The portfolio of the company has to be managed properly. It should meet the requirement of the customers as well as gives a step forward in the direction to grow in the competitive environment. The company has to analysis the strategy it will follow during product development.

The company was going through financial crisis. Under these circumstances, cost cutting plays a very important role. This will help the company to increase the outputs and earn more profit. The company started relocating its production units in low cost countries.

Employees are unable to understand what happen and why it happened. The company should tell its policies to the employees. They should be aware of what they are doing and why they are doing.

Creative and structural problem solution – creative and structural solutions was the demand of the competition. The company was playing across the problem faced in the different countries needs different solutions.

Strategy based on growth, increase in market share- The focus of the company should be growth. Its main objective should be to increase the market share.

Focusing on new product- changing demands and scenario needs to focus on the development of the new product. Company introduced six different products to satisfy the demands of children in every stage.

Right sizing its activity- Activities should be elaborated and expanded certain extent. It should be easily manageable by the company. It should not create complexity.

Different retails in different countries should be approached in different style and with different strategy. The company should study the market carefully and then enter the market.

Product development and distribution- proper strategy to develop and distribute a product is essential. It needs good analysis and study of the market as well the demand of the customers.

The company focused on segments they were mobile, consumers, medical, infrastructure, industrial, computing and automatic. 

The company should focus its attention on short term objectivities and try to gain its position in the market. This will help the company for gain higher market share. The focus of the company should be providing good environment to the employees and to satisfy customers demand (Keçetep, 2013).

References

Ahmad, M. (2013). Marketing Case Studies and Swot Analysis. Saarbrücken: LAP LAMBERT Academic Publishing.

Douligeris, C. (2013). Collaborative, trusted and privacy-Aware e/m-Services. Berlin: Springer.

Gao, L. (2013). Resource Utilization of Digital Library in Full View Analysis of SWOT. AMM, 427-429, pp.2104-2109.

Keçetep, I. (2013). Gender Analysis , SWOT Analysis , Survey Design & Analysis. Saarbrücken: LAP LAMBERT Academic Publishing.