Lego Company’s Supply Chain Management

Introduction

Lego has been a global household name for quite a while. The company has introduced a line of unique toys and has become a global brand with an easily recognizable image. However, because of some of the flaws that could be defined as inherent to the company’s current business model, such as slow-moving inventory, the levels of satisfaction have dropped significantly among its customers. To improve the quality of the product and be warmly received by its customers, the organization will have to rebrand its product and focus on the opportunities that the online environment offers.

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Key Challenges

A drastic drop in the number of customers, problems with Supply Chain Management (SCM), and the necessity to meet the challenges of the global market can be regarded as the primary issues with which Lego will have to deal. The specified problems can be attributed to two essential problems within the company’s design. Particularly, Lego seems to have difficulties deploying technological advances for enhancing its communication. By reinforcing the dialogue between the organization and its stakeholders, primarily customers and suppliers, Lego will be able to manage deadlines more efficiently and meet the needs of its target population accordingly. Indeed, with the introduction of a coherent framework for information management, a range of misconceptions that cause delays in the delivery of necessary materials and tools will be avoided. Furthermore, feedback from customers will be obtained much faster and processed with greater precision. As a result, a gradual rise in the quality of services and, thus, the levels of customer satisfaction, retention, and the attraction will rise.

Possible Solutions

Seeing that the organization has witnessed a significant drop in the number of its customers, opportunities for rebranding should be considered as the first step toward improving the situation. The identified change to the company’s products and services will help target new types of customers, thus, helping Lego to target a wider range of clients. Consequently, the current corporate image will have to be altered to address the needs of more diverse buyers. The introduction of culture-specific items, as well as the focus on developing interactive applications, will have to be deemed as a priority for Lego.

In addition, the issues associated with product quality and customer satisfaction need to be addressed. As the case shows, Lego has been defaulting on some of its transactions due to imperfections in its Supply Management Chain (SMC). A closer look at the factors that have contributed to the development of the problem will reveal that the company, in fact, requires an update on its information management techniques.

Furthermore, the new growth strategy will have to be reconsidered. As stressed above, it is crucial for Lego to ensure that its customer base is expanding and that customer satisfaction levels increase consistently. Thus, the company will have to focus on improving its quality, at the same time introducing new products and enhancing the existing communication system. The specified steps will require a twofold approach toward increasing the company’s sales and attracting new customers’ attention. Particularly, product diversification will have to be regarded as a necessity. As the case study shows, Lego currently has a rather limited range of products. Even though occasional instances of media exposure due to collaboration with other organizations, especially those in the entertainment and movie industry, help Lego advance in the global market, it needs a more profound approach. By introducing product diversification and creating a new brand, e.g., designing mobile applications, Lego will be able to elevate itself in the eyes of its current clientele, as well as attract new customers. Indeed, a closer look at Lego’s customer base will show that it mainly consists of nostalgia-driven customers (Rivkin et al. 3). Therefore, aiming at attracting children and teenagers should be the primary step toward gaining more attention in the market. The specified goal, in turn, can be achieved by creating a new brand that will represent the organization in the online environment, such as a mobile application.

The identified changes, in turn, will require a massive shift in Lego’s current values and corporate philosophy. The quality standards of the organization will have to be altered to become more customer- and innovation-oriented. The resulting shift toward introducing new ideas and concepts into the corporate framework will allow addressing rapid changes in the realm of the global market and adjust to new quality standards and customers’ demands. Needless to say, the specified alterations will imply a change in the corporate leadership framework.

Conclusion

A change in the current approach toward SCM processes and the introduction of a new brand along with a launch of several applications are bound to affect Lego positively and, thus, help it manage the crisis. Even though the organization has been addressing its recent troubles comparatively well, a new framework for managing communication between the organization and its key stakeholders is desperately needed. Thus, communication issues and the problems in the firm’s current SCM framework will have to be addressed respectively so that the firm could continue delivering the products of the best quality to its buyers.

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Work Cited

Rivkin, Jan W., et al. Lego (A): The Crisis. Harvard Business School, 2013.

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StudyCorgi. (2021, May 20). Lego Company’s Supply Chain Management. Retrieved from https://studycorgi.com/lego-companys-supply-chain-management/

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1. StudyCorgi. "Lego Company’s Supply Chain Management." May 20, 2021. https://studycorgi.com/lego-companys-supply-chain-management/.


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StudyCorgi. "Lego Company’s Supply Chain Management." May 20, 2021. https://studycorgi.com/lego-companys-supply-chain-management/.

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StudyCorgi. 2021. "Lego Company’s Supply Chain Management." May 20, 2021. https://studycorgi.com/lego-companys-supply-chain-management/.

References

StudyCorgi. (2021) 'Lego Company’s Supply Chain Management'. 20 May.

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