Presented by: 153 Bharati Kumari Karna 155 - Pratap Thapa 156 - Rajendra Bahadur Thapa 158 - Ramesh

h Shrestha 163 - Sudan Kayastha

Spare a thought !

Why Basbari Leather Shoes Company collapsed amidst high demand ?

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

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

Lego Mindstorm -NXT

Intelligent Brick

Programming Interface

Sensors
Servo motor

Connector

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 worlds 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

Denmark

Founded in 1932

Carpenter Ole Kirk Christiansen To save its carpentry business from bankruptcy

Wooden Pull toys, piggy banks, cars and trucks

Named Lego in 1934- Leg and Godt meaning play well

Started Selling Wooden Toys

Insight #1: You dont 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 SelfLocking 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 reassembled. 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 Butadiene Styrene(ABS) Plastic made Lego 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

Worlds tallest Lego tower 94.3 ft ( 28.7 m) with 465,000 bricks Worlds Longest Lego Construction 5,179.8 ft(1.58 km) with 2.9 million bricks Worlds Largest Lego Image - 870.15 sq. ft (80.84 sq. m) with 1.2 million bricks
Worlds Largest Lego image

Convergence and Divergence

Marketing
MindStorm
For technocrats

For girls

Toys

Parks

Standar dization
User Innovation
Interlo cking Bricks

Board Games

Youth
Competitions

Creat ivity
2-24 6-915 million possibilities
11,000 contractors (more than Boeing)

Movies

Clothing

Video Games

Designs

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. User as Innovator approach

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

LEGO Digital Designer Digital models of all the bricks

LEGO factory.com Online mass customization

MindStorm NXT 2006The 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
100 2007 1995 2011

120

80 % of sales and profits

60 40 1932 20 0 1940 1952 1953

Sales Profit

1998

-40
Years

2002

1920 -20

1940

1960

1980

2000

2006

2020

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 Designers products but Users neglected Innovate what is needed by customers.

So.
What you thought ?

Why Basbari Leather Shoes Company collapsed amidst high demand ?

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

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