Lego - Assignment ExampleHowever, this decision turned sour and LEGO withdrew their production from Flextronics in 2009.There are two major reasons behind LEGO’s decision to have 80 percent of their products produced in Flextronics. The first one was the introduction of new toys in the market by its competitors. This influenced the company’s decision to partner because it was during the same period the company had lost confidence in its key product, LEGO brick (Larsen et al, 3). The second reason that triggered partnership was the changes in the global market, as well as, the currency exchange rates in the major importing countries. Through partnership, the company had aimed at increasing its market shares and producing new products.The partnership did not last long without challenges which with time led to the end of the relationship between the two companies. The fist challenge was ensuring that enough stock is constantly maintained. This was mostly contributed by the errors in forecasting and fluctuation of seasonal demand.
