Presented by:153 – Bharati Kumari Karna155 - Pratap Thapa156 - Rajendra Bahadur Thapa158 - Ramesh Shrestha163 - Sudan Kayastha

Why Basbari Leather Shoes Company collapsed amidst high demand ?

What have they done right to come back to the market again?

Spare a thought !

Lego Bricks

Lego Movies

Lego Games and Video Games

Lego Amusement Parks

Lego Mindstorm

Lego Mindstorm

• Sophisticated Technic-based kit with programmable brick, various sensors, actuators and simple user Programming language.

• Robotic Invention system(RIS) -1998

• Mindstorm-NXT-2004

Sensors

Intelligent Brick

Connector

Programming Interface

Lego Mindstorm -NXT

Servo motor

Amazing Lego Facts

•19 Billion Bricks every year•2.16 million Lego elements every hour•36,000 per minute•Only 18 out of 1 million bricks produced is defective

•62 Lego bricks for every one of the world’s 6 billion inhabitants•Childrens spend 5 billion hours a year playing with Lego Bricks•More than 400 million people have played with Lego Bricks•More than 400 billion Lego bricks have been produced since 1949•7 Lego sets are sold by retailers every second around the world•The Lego bricks sold in one year would circle the world 5 times

The Humble Beginning

Founded in1932

Carpenter Ole Kirk

Christiansen

Named Lego in 1934- Leg and Godt meaning

play well

Started Selling Wooden Toys

To save its carpentry

business from bankruptcy

Denmark

Wooden Pull toys, piggy

banks, cars and trucks

Insight #1: You don’t need to run first to win the race

• Lego is not the first one to invent self-locking bricks.

• Ole Kirk was inspired by the Kiddicraft Self-Locking building Brick(UK)

• But Kirk improved upon the design and patented it in 1958.

• He made tube and stud coupling which is more precise.

The Plastic Saga

• 1940

• Plastic toys that could be taken apart and re-assembled.

• 1953 – first Lego bricks that we see today

• Were not initially very successful, partly due to poor perceptions amongst consumers and retailers of plastic toys.

Acrylonitrile ButadieneStyrene(ABS) Plastic madeLego Car

Insight #2: People resist change

• High Inertia is shown by customers in the introductory phase of a product.

• High marketing and advertisement efforts are necessary in the beginning

Lego World Records

• World’s tallest Lego tower – 94.3 ft ( 28.7 m) with 465,000 bricks

• World’s Longest Lego Construction – 5,179.8 ft(1.58 km) with 2.9 million bricks

• World’s Largest Lego Image - 870.15 sq. ft (80.84 sq. m) with 1.2 million bricks

World’s Largest Lego image

Convergence and Divergence

Creativity

Youth

User Innovation

Interlocking Bricks

Video Games

Movies

Board Games

Toys

Clothing

Competitions

Parks

MindStorm

Designs

Marketing

For girlsFor

technocrats

11,000 contractors (more than

Boeing)

2-246-915 million possibilities

Standardization

The Peak and Decline

• 1995 – the year of highest profit

• Three quarters of UK households owned LEGO

• 97% awareness in the world

• 50 years of unbroken sales growth

• 1998 – First Loss

• 2004 – Galidor Line -$240 million loss

• Design Running Wild

• Could not compete in cost with Megabloks

• Too much dependent on external ties

• Deviating from core competency

Insight #3: Focus on your core competency

• Do not get bewildered from your core competency

• Stick to what you do best, even at the difficult times

• Always prefer Simplicity over Complexity

The Uprising

• 2004- Fears of Mattel Company taking over Lego began to arise.

• Tradition of family management ended

• $178 million injected into business

• 3500 of the 8000 employees lost their jobs

• Unique pieces brought down to 7000 from 12,400

• User as Innovator approach

• LEGO Digital Designer -Digital models of all the bricks

• LEGO factory.com – Online mass customization

• MindStorm NXT – 2006-The Disruptive Technology

• Right to hack – Not all the smart people work for us

• Lego Universe – The future stage?

Insight #4: User Driven Innovation

• Innovation platform for users

• Digital Version of Lego

• Right to hack

• User Competitions

• Lead users involved in the design and development process

Enablers and Drivers

Enablers and Drivers – Lego Bricks

Drivers Enablers Outcome

Enablers and Drivers – Theme Parks

Drivers Enablers Outcome

Enablers and Drivers – Manufacturing

Drivers Enablers Outcome

Enablers and Drivers – User Innovation

Drivers Enablers Outcome

Technological Trajectory

19

32 19

40

19

52

19

53

19

95

19

98

20

02

20

06

20

07

20

11

-40

-20

0

20

40

60

80

100

120

1920 1940 1960 1980 2000 2020

Sales

Profit

Years

% o

f sa

les

and

pro

fits

Insight #5: Success and Failure are two sides of same coin

• Sales growth is not permanent

• Sometimes strategies can go wrong

• User feedback always helps to come back to track

• Stay strong in difficult times and good time will be back.

• Do not panic and leave your core competency in difficult times.

Innovation Suicide

• Sometimes too much innovation deviating from your core competency can prove catastrophic.

• Increasingly Complex product development and design

• Higher Design and Manufacturing Cost

• Highly dependent on external ties

• Designer’s products but Users neglected –Innovate what is needed by customers.

So…….

Why Basbari Leather Shoes Company collapsed amidst high demand ?

What have they done right to come back to the market again?

What you thought ?

Conclusion

• Lego Dacta(Education Production Department) group believes:

– children learn best by doing or making…

– learning should be an enjoyable, as well as an educational experience…

– extensive scientific research into fields such as cognition, psychology, evolutionary psychology, and epistemology support these beliefs…