Product Life Cycle of Lego
Summary
Giant has merged to become TT Games and Lego videogame titles such as Lego Star Wars and Lego Indiana Jones have sold more than 17 million copies in the U.S. The Batman title pulls many of the popular characters from the comic series such as Robin and the Joker together with more obscure characters like the Mad Hatter.
Key terms and concepts
Product life cycle (PLC):
There are four stages in product life cycle: introduction, growth, maturity and decline.
Introduction: In these stages, plastic-brick toy is the first concept of LEGO.
Growth: The sales volume grows quickly; however, the profit is decreasing due to a large of competitors. The preference of children is not only the block but also the videogame.
Maturity: Products get into the maturity stage because sales volume and competitors are more and more.
Decline: New products replace the old products and the prices compete intensely.
The big company such as LEGO can still increase profits. Despite it have the loyal customers, it still need to keep with changing consumer preference. Therefore, LEGO generate the videogames.
Like customer, products undergo the product life cycle. Competitor keep developing and duplicating the ideas and products. Therefore, it makes the product go out of fashion quickly. LEGO Company was likely in the stage of decline and price competition had become more intense, and the profit was keeping decreasing. Nobody could deny that LEGO Company needed to make some change and this innovation should be made as soon as possible.
Innovation:
Lego is a quite special toy which were designed in the 1940s and getting more and more popular.