The influence of innovation strategy on enterprise: a pedagogical case study of Lego

• Autor(a) principal: Li Xiaohan
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/21663
• topic: Toy industry; Porter's five forces model; Strategic tools; VRIO model; Lego; Indústria dos brinquedos; Modelo das 5 forças; Modelo VRIO

Toys are an indispensable partner in the growth of children, which can give children boundless joy. Toys can not only satisfy children's playful nature, but also be an important tool to cultivate children's good intelligence and healthy psychology. The growth of the toy industry has given rise to big toy companies such as Lego, Hasbro and Mattel. With the progress of the Internet and the development of electronic games, the traditional toy industry has been impacted to some extent. In 2019, in 13 major markets around the world toy sales fell by 3%, Australia, Belgium, Brazil, Canada, France and the United States have all seen sales decline and even closed large retail stores in 2019. In the face of the current depressed market situation in the toy industry, Lego Group, on the contrary, has achieved sustained profits. Recent data show that Lego saw significant growth in both sales and profits in the first half of 2020, reporting a 14% rise in sales and a 7% surge in revenues. The purpose of this paper is to provide a pedagogical case study on the Lego company to the audience – management undergraduate students. The case allows students to apply important strategic tools like Porter's Five Forces model and the VRIO model, and concepts related to innovation and ambidexterity to the case, in order to combine theory with practice, which is hoped will have a positive impact on their understanding of the matters and ability to apply the concepts in new settings.