Company Paper Presentation

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Company Paper Presentation
LeapFrog Enterprises, Inc. Team members Kimber
Lockhart Shaun Maguire Chee Chian Seah Liheng
Tang March 11, 2008
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LeapFrog Enterprises

• Technology-based educational platforms
• Five target segments Infant to Grade 12
• Competes in toy and educational publisher
  industries
• Net sales of 680 million in 2003, decreased to
  442 million in 2007
• Distributors in 20 countries

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Key Products

• LeapPad (24.99)
• Use Magic Pen to read LeapPad books
• Blue ocean 30 million units and 72 million
  interactive books sold
• Tag Reading System

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Key Products

• FLY Pentop Computer (79.99)
• Write on FLY Paper and upload to PC
• Homework applications Algebra, Writing, Spanish,
  Music Studio
• Play MP3s and games

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Porters Five Forces
New Entrants High Barriers to Entry
Existing Firms Rivalry with Fisher-Price, Hasbro
and VTech
Buyer Power Wal-Mart, Toys R Us and Target
Supplier Power Raw materials, electronics, talent
Substitutes Toys, Educational Materials, Computer
Games
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Key Challenges

• Maintain competitive advantage
• Seasonal sales
• Sales dependence on three major retailers
• Protect intellectual property

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Challenges

• LeapPad Sales 1999-2005

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Challenges

• LeapFrog (LF) Stock Price, IPO - Present

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Fix, Reload and Grow

• Fix Reduce inventories, prioritize product
  development efforts
• Reload Launch new products and expand software
  library, create ecosystem
• Grow Strengthen international business

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Simple Rules
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Recommendations
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Conclusion