Lego Case Study Example | Topics and Well Written Essays - 1500 words

Lego - Case Study Example This has been a silent trait of this firm. The well maintained relationship and the support close all the inevitable people, like consumers, customers, business partners and all stakeholders was successfully extended to a more advance level during this year. Looking at LEGO's dedication, it will not be an understatement that this work and their motives will always mark their presence in the coming years. In 2007, the LEGO Group has covered the four years period out of its seven-year strategy. This was a very affective move with the motive, which is kind of acquired so far, that is to bring a complete change to the entire market and business scenario while developing LEGO as the best brand exhibiting their commitment towards creative building and playing the key role in providing effective learning techniques through play. As per their strategy, various aspects like processing, procedures, structure and relations to stakeholders will undergo a primary change during the years 2004-10 (Annual Report, 2007). The prime objectives for all the stakeholder groups were well defined by the group in the year 2006 (Annual Report, 2007). These have been further intensely developed in the year 2007. The rigorous balanced approach to different stakeholder groups will certainly provide a significant platform for the future operations of this group. The strategic move is divided into different stages, where every stage is targeting on some specific motives. The very initial stage was acquired in the year 2004-05 by enabling the Group to step out of the financial crisis situations due to the number of years of poor financial results as a result of unprofitable growth (Annual Report, 2007). Year 2003 for LEGO Group The cut-throat competition in the toy market brought a considerable loss of market share in most markets, due to the competitors, novel product trends and private labels by the retailers. The US market noticed around 35 percent drop in market share as compared to the previous year, where as Asian markets noticed a fall of around 28 percent (Annual Report, 2003). The year 2003 was very disappointing for the group. The net sales fell by around 26 percent from DKK 11.4 billion in 2002 to DKK 8.4 billion, where as the play material sales declined by 29 percent to DKK 7.2 billion and thus resulting in a pre-tax loss on earnings of DKK 1.4 billion, which showed a drop of DKK 2 billion as compared with the previous year (Annual Report, 2003). The retardation shows the failure of the growth strategy resulting in a considerable loss of the market shares. Finally by the end of the year 2003, the group decided to change its business