Loge:Inventing the future of play - Essay Example

The Bowman’s Strategic clock can provide an overall outlook about the company’s position as compared to its competitors in terms of product and price. As per Bowman’s strategy clock, lego is offering high value added products to its customer. Company is targeting particular segment of the society that is children and adults. They are providing quality toys with variations. On the basis of higher quality, Lego also demands premium price. The sales figures mentioned in the case study reflect that consumers do not have objection on paying higher prices for Lego’s products and services (Case studies, 1972).

Lego is implementing focused differentiation. Perceived added value is being provided to a particular segment that children and adults. The products and services have unique characteristics as compared to their competitors because of which consumers are also willing to pay higher prices. From manufacturing of toys to CD ROMs’ and from amusement parks to technical toys, all these are the variations in Lego’s traditional product. There are very few companies which are offering the products and services similar to Lego.

This is the reason because of which offerings cannot become a victim of “me too” phenomenon. Lego is pursuing the route of focused differentiation on the Bowman’s strategy clock. . Secondary activities include procurement, technology development, human resource management and firm infrastructure. Value chain analysis provides a picture to the organization about which activities should be preferred. As far as the case of Lego is concerned, it is involved in a business which requires continuous innovation.

Therefore Lego should concentrate on developing its operations in preferred primary activity. Technology development is the preferred secondary activity for Lego (Pride & Ferrell, 2008). Question 2 Strategy Development for Lego The case analysis reflects the fact that Lego is focused towards product development. It has been mentioned in the case that Lego has kept on offering variations in its offerings. It has started with traditional toys for children then it launched technical products and ended up at amusement parks.

Companies can only retain its customer base if its market offerings are competitive with the needs and wants of consumers. However as in the case of Lego, companies can go one step further by offering products and services which can be useful for consumers but they do not have the knowledge about such products. For example most of the Lego products would not have been demanded by the consumers if company would not have provided the same. Lego analyzed the need for amusement and designed its products which can delight its customers (Kotler, 1986).

Analysis of Lego’s Strategic Direction Lego has served its customers efficiently and effectively. Although Lego has not competed effectively with other members of the industry, but the overall performance of the company is remarkable. They started from one country that is Denmark but now they are doing business in more than five countries. It was the innovative thinking of