The Lego Group Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Available Opportunities for LEGO’s Best Product Line Expansion

Following opportunities will help LEGO to expend its popular and best product line expansion in the building market.

Creating a LEGO Educational Program

In the building market, LEGO has a very distinctive position and people have a trust upon the quality, safety and durability of its products. In this regard, the company should opt for the differentiation strategy in this market and should launch a LEGO Educational Program just like Microsoft, IBM and General Electronics. LEGO should focus on the development of new and reliable architectural models and designs to help students in learning in their early age. LEGO should partner with a few top institutions to offer their building blocks sets for learning purpose (Cool & Woo, 1984).This will help the company to differentiate itself from the rest of the competitors as well as will allow it to show consistency with the company’s mission “to inspire and develop children to think creatively, reason systematically and release the potential to shape their own future”.

This strategy will also increase customer loyalty for the brand as children will become loyal to the brand throughout their life, which will also secure the future of the brand because in the adulthood, these children will recommend LEGO to their juniors. However, this opportunity will come with a risk of huge investment in changing their brand image from the fun to the development of children as well as for building the trustworthiness of the brand for educational programs.

Cost Leadership

Another opportunity that is available to the LEGO Group is to gain economies of scale. LEGO has a very long experience in the manufacturing of building toys so that they can easily reduce their manufacturing costs by acquiring low cost raw material. LEGO should conduct a market research across the globe and should try to identify those regions where they can access low production costs. This option has also some serious risks as LEGO will require huge investment in building a production plant outside Denmark. Moreover, this will also take a long time in building relationship with potential suppliers. However, the advantage of this shift will be high, as this will help the company in building superior quality building blocks at a lower price to attract more and more customers. LEGO will need to convince its customers about the quality of its products after such a shift because many people relate low price with low quality, therefore, the company will also have to invest heavily in the marketing sector (Cool & Woo, 1984).

Corporate Social Responsibility

LEGO should improve its brand image by adopting Philanthropic corporate social responsibility. In this type of social responsibility, a company/business usually gives money or some types of products in charities (Cragg, Schwartz &Weitzner, 2009).LEGO should offer its products to charities that are working for the development of children. In this way, LEGO will require to send a specific amount of building toys sets to various charitable organizations across the world. This will not only improve the brand image of LEGO among its competitors, but will also help the company to increase the numbers of its loyal customers as all those children living in orphanages and other organization will become loyal to the LEGO throughout their life. LEGO should take the initiative in its home country Denmark and should later on expand to other parts of the world..............................

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