Invest in research and development rd to improve its

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invest in Research and Development (R&D) to improve its product and expand its market segment. Benefits and Advantages Innovation and new technology attract the young generation, thus will increase the sells and revenue. The innovations and operation enhancement will increase customer satisfaction and will encourage them to purchase new items. By innovating, the R&D team may create toys that can target the other generations, so innovation may expand the LEGO market segment. The customer behavior changes over time; therefore, the company needs to have continues innovation and strong R&D. Critical Success Factor Analyzing customer behavior change may provide the needed information to the R&D team to improve the product. Continues development training for employees will keep their minds innovative. Investing in R&D and operation to enhance their productivity. Threats and Risk
LEGO BUSINESS PROPOSAL 32 The current financial situation may be a threat to investment. Investing in operation and the R&D department may be costly. Resource turnover is another threat to investing in technology. Data bridge and security may be the other concern. The company needs to keep its information confidential in order to succeed. Strategy Option 3 The last option is to expand the market segment by considering adults. According to statista, the number of males and females playing games at an older age is higher than kids. Therefore, there is a potential market in this age group of 20 to 50. Benefits and Advantages In the age group of 20 to 50 there is a high possibility of revenue growth. According to statista, the number of males and females playing games at an older age is higher than kids. Figure 3. Game playing in deferent age group” by Statista, 2019. . ©2019, Statista.
LEGO BUSINESS PROPOSAL 33 Recently, the grown-ups look for games more than kids, the Lego is one of the best in this area that has eliminated the adults from its product. They need to expand thier target market. Developing new slogan Generating more revenue Critical Success Factor The globalization has changed people's lives and now all age groups live more individualistic.playing games becomes people hobbit. Thus the company needs to consider other age groups as well. Threats and Risk The cost of performing a survey to find the mentioned group age likes and dislikes. Higher investing for mass production Cost of R&D Recommended Strategy Option Option one is recommended. The new product line will increase the current, and future company’s earning. The company’s name is well known in this area and people are familiar with the products. Therefore, the company has marketing advantages and they do not need to spend time on company recognition to earn customer trust. As lego is a private company their shares are not offered to the public. As if it was a new product line would increase the company shares prices and Lego could gain revenue from simply selling its shares.

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