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Lego Group Case Questions

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Running head: LEGO GROUP CASE QUESTIONS 1
LEGO Group Case Questions
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LEGO GROUP CASE QUESTIONS 2
LEGO Group Case Questions
Question 1
The fall of the LEGO Group Company was as a result of poor management decisions on
production and also several changes in the toy industry. The industry was actively changing in
four main ways. First, the niche for traditional toys was limited by computer gaming, which
includes video game systems, digital games, portals, and sometimes even smartphones. Also,
with children choosing to join interactive, imaginative environments at around eight years of age,
they, at a younger age, were reducing participation in traditional toys. Secondly, the retail
industry consolidated into new super-stores, for instance, Walmart and Carrefourwhich had a
growing proportion of overall toy revenues (Robertson & Crawford, 2008). This portrayed a
resolute transition of authority in favor of the distributors and away from the production
companies. In this modern market setting toy, producers have had to fight for shelf room with
each other, frequently following promotional demands from supermarket stores or manufacturing
licensed products for them.
Thirdly, the toy sector experienced intense depreciation impact on pricing as a result of
the modern retail landscape and relocation of production into Asia. Notably, also, as the US
dollar progressively weakened against the Danish krone, LEGO offerings in the business's main
significant segment became increasingly more costly (Robertson & Crawford, 2008). Fourthly,
the company started to observe cheaper, look-alike bricks almost identical to the firm's original
components. These toys started to take down the share of the market from LEGO building
frames, and not only were the rivals lower cost than the LEGO Group but also quicker, putting
brands to supermarkets before LEGO would.

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Running head: LEGO GROUP CASE QUESTIONS LEGO Group Case Questions Name Institution 1 LEGO GROUP CASE QUESTIONS 2 LEGO Group Case Questions Question 1 The fall of the LEGO Group Company was as a result of poor management decisions on production and also several changes in the toy industry. The industry was actively changing in four main ways. First, the niche for traditional toys was limited by computer gaming, which includes video game systems, digital games, portals, and sometimes even smartphones. Also, with children choosing to join interactive, imaginative environments at around eight years of age, they, at a younger age, were reducing participation in traditional toys. Secondly, the retail industry consolidated into new super-stores, for instance, Walmart and Carrefour–which had a growing proportion of overall toy revenues (Robertson & Crawford, 2008). This portrayed a resolute transition of authority in favor of the distributors and away from the production companies. In this modern market setting toy, producers have had to fight for shelf room with each other, frequently following promotional demands from supermarket stores or manufacturing licensed products for them. Thirdly, the toy sector experienced intense depreciation impact on pricing as a result of the modern retail landscape and relocation of production into Asia. Notably, also, as the US dollar progressively weakened against the Danish krone, LEGO offerings in the business's main significant segment b ...
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