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Leapfrog - Case Study

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Learning from Leapfrog

Presented by: group 8


Kavya
Bishal
Natarajan
Angsuman
Preethi

INTRODUCTION
Founded

in 1995
On 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
To

the time.

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 Kongs Vtech Holdings Ltd.
For about $72 million.

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