Research Paper on:
Lego Case Study

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months. This took place against the background of a product which had lost a great deal of the previous competitive advantage. The patent on Lego Bricks had expired and increasing  competition was seeing the traditional market eroded not only with increased competition, but also new types of toys. The difficulty is in knowing the best way to proceed. The Mindstorms  team want to develop as a strategic business unit separate from the core business, however, there is also the option to integrate the high flying team so that the company  can gain increased synergies from the new and the old. Both of the options have advantages and disadvantages. Potential Synergies and Advantages of Integration The current set up is  difficult and there are many advantages to integrating the Mindstorms team into the mainstream. IT has been noted that the group is "still operating like a separate strategic project", it  is also stated that this separate operation is disrupting the 200 other employees in the same office. To consider the potential synergies we need to consider the history of the  development of the team. The Lego Company itself may be seen as being very conservative, when the Mindstorm project was being developed there was a great reluctance on the part  of the employees within the core sectors to transfer to the projects in case they failed. This indicates the type of culture that has developed; this is one where there  is a fear of new ideas and innovation. The company had to bring in outside recruits and on many occasions where an employee was interested in transferring their managers would  out them off. The impression give by many of the mangers that any product that would retail at more than $39.99 could not be sold to the mass market; the