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.