Picking up the Lego pieces - Lego's turnaround or not Essay

Picking up the Lego pieces - Legos turnaround or not - Essay ExampleThe declaration was a disaster.Lego adopted the diversification strategy of expanding its commercialise to include girls and older boys and selling new and uncorrelated increases like clothes, watches, video games and theme parks to these new securities industrys. Like other companies that went beyond their core competency in Legos case, making toys for 5-9 year-old boys Lego failed miserably and lost m wholenessy because market share spiraled downwards as it sold lesser products to lesser customers and incurred higher costs.The CEO hired in 2004, Jorgen Vig Knudstorp, changed the corporate strategy to one of focus and product speciality. While Lego continued to expand its market to include older age groups, differentiation is not the same as diversification, and in this sense the Economist article was not entirely be when it claimed bits of the diversification strategy remained. Lego continued to offer the same focused brand of play for all come Lego comes from the Danish leg godt which means play well to a larger market and aligned the recess of the company to be profitably right-sized for it.Legos next steps delivered positive results and showed it could diversify into computer ground games for an older age group, staying focused and pragmatic while building on its traditional brick-based products (Watts). Its blockbuster Bionicle and Mindstorm product lines led to profitable product extensions like Star Wars and Harry Potter, capitalizing on film tie-ins, and extended market reach to more countries, especially to emerging China and Japan, acknowledged to be Legos top market in Asia for construction category toys (McGinn Lego Website).Cheaper products made in Asia and sold by Tyco under the Super catch brand eroded Legos market share in the 1980s. While Lego enjoys first mover wages and continues to be number one in the construction category toy market, competitors are fighti ng a marketing war