Learning From Leapfrog

LEARNING FROM LEAPFROG CASE

LeapFrog is a prime example of how having an entrepreneurial spirit can lead to a successful business. In the early 1990's, Mike Woods saw an opportunity to link education of children with technology. With his dedication and commitment to quality products using the latest technology, he has built LeapFrog into the #3 toy company in the United States. To understand the success of Mike Woods and LeapFrog, we need to understand the circumstances that occurred during its growth and development and the actions and opportunities during this time period that enabled LeapFrog to launch and develop into a successful company.

First, we need to consider when the right time is for someone to start their own business. One of the key elements for any person wishing to start a business is recognizing an opportunity to fill a need or solve a problem. In the beginning, many times people don't even know what the solution is, but they see that there is a problem to be solved. Then, once finding that need or problem, they have to find out if people are willing to pay for their solution to the problem. Another key to starting a business is that the person really needs to be dedicated to working hard and being persistent. Starting a business takes long hours and a lot of money. Just because someone has a great idea, doesn't mean the money will just magically flow in. Starting a business takes planning, do analysis beforehand to see if the product or service can be successful.

So what was LeapFrog's context during the idea to opportunity phase? It all begin with an idea. Mike Wood's came up with an idea while playing with his son, an idea that stuck with him He did a lot of research on his potential product, from conducting focus groups (with mothers) to talking to education experts on how children learn. He got a lot of advice on his idea and redesigned and changed his idea before ever attempting to manufacture a product. Mike Woods developed his strategy, vision, and core values for his company at the very start, wanted to create quality educational products that provided children with positive feedback.

The success of LeapFrog shows the entrepreneurial process in action. The triggering event was Mike Wood's working with his small son trying to teach him the difference between the names of the alphabet and their sounds. He had a vision of what could be, providing educational toys that children would enjoy using and not even realizing they are learning something. In the beginning, he did a lot of research on his product and continually changed it, making it more cost effective. Mike Wood's did a lot of work, five years worth, before quitting his job as a lawyer and launching the company. He analyzed the market, raised funds, obtained patents on his ideas, and began building a team of people who shared his vision. His dedication allowed him to take his vision and turn it into opportunity.

Mike Woods, the key to LeapFrog's success, was able to take his ideas and turn them into opportunities. He did this by first recognizing that he had a good idea and pursuing it. He filed a patent on his idea, retaining the intellectual property that became one of LeapFrog's core assets. Woods' got the idea that his products should not only be educational, but provide positive feedback, and he incorporated that vision into his products and into his company. The staff he hires at LeapFrog share his dedication and commitment to education as well as Wood's spirit of fun and creativity. Woods say an opportunity for further growth by opening its SchoolHouse division, after realizing that teachers were using LeapFrog's products and there was a potential market in with schools and teachers.

LeapFrog was able to strategically position itself by its positioning. For its product positioning, LeapFrog began by researching its potential customers and understanding what they wanted. (focus group of mothers) The toy industry did not have a lot of barriers for entry, as the toy business is trend-based. LeapFrog was offering a new vision in toys (education while playing) using technology to enhance the learning process. For its marketing positioning, LeapFrog chose what product to serve (toy market with education edge), it developed the company message (learn something new every day) and the brand (using same green color) and making the LeapFrog name synonymous with "educational toy." The value chain/network positioning, LeapFrog began by working with buyers from toy buyers, like Toys R Us. They later took opportunities with retailers such as Target and WalMart, who were taking over the lead in toy sales, over the toy chains like Toys R Us and KB Toys. As LeapFrog continued to grow, it expanded its retail channels to bookstores and office supply stores. In its boundary positioning, LeapFrog considered what markets and services they didn't want to pursue. One area was online retailing,