Leapfrog- Case study
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Transcript of Leapfrog- Case study
Learning from Leapfrog
Presented by: group 8KavyaBishal
NatarajanAngsuman
Preethi
INTRODUCTION
Founded in 1995On basis of innovative technology
and sound educational principles, reached #3 in global toy industry
2003: Struggle between growth and creative spirit
Difficulties in preserving creative spirit as company challenged the industry giants
What can we learn from this case?Excitement, energy and spontaneity vs. rigor, accountability, and formal structure
CASE BRIEF
BUSINESS FORMATION TO PRODUCT LAUNCH
Business Model
Strategic domain Purpose: Turning of ideas about learning into
marketable educational solutions Positioning: Educational toys in an electronic gamepad
format for children Value
Educational principles
Two Business Models
Toy Company Focused sales on four key retailers with Risk
Two Business Models
Educational Publisher Company focus
▪ No Child Left Behind
Strategic Benefits of IT
Helps reduce the transportation and the stock-out cost.
Ability to understand the customer better. Reduces the time. To reduce the new product development time
LEARNING
Sustainable growth strategies
IP creation
Growth strategies cntd..
Expanding retail channels By learning from Customers Aggressive Brand management Finding the right people Sustaining the vision
Challenges
Seasonality Cost effective manufacturing Shifting demographics
Recommendations
Broaden consumer age Indian market Counter rival strategy Create advanced study packages Pursue national & international manufacturing and distribution
centers Online tutorials Focus on child and parent research groups
CONCLUSION
LeapFrog differentiated itself by selling edutainment products.
First, Implemented IT for e-commerce, increasing revenue by managing supply chain efficiently.
Introduced new products LeapFrog epic, LeapPad Platinum, Leap TV, Leap Reader,etc.
Launched mobile and desktop based applications showing creativity.
CONCLUSION(Contd..)
LeapFrog worked with LogiGear developed in house software testing and necessary IT transformations.
Used Action Based Testing(ABT) making use of automation for maintenance and testing. Availability of cheaper alternatives, LeapPad costs $130 for which many apps are available in app store.
Apps were released for free and some were lower priced.
Technology limitations of the LeapFrog products.
CONCLUSION(Contd..)
Highly competitive market, yet reaches only a very narrow demographic.
To be acquired by Hong Kong’s Vtech Holdings Ltd. For about $72 million.