Theo Blog 2: Lego and Shell Oil

http://www.economist.com/blogs/democracyinamerica/2014/10/greenpeace-lego-and-shell?zid=319&ah=17af09b0281b01505c226b1e574f5cc1

 

Lego bricks, like many modern toys, are made of an oil-derived plastic. Up until very recently, Lego had a promotional deal with the oil company Shell, making the two compliments of each other. When the demand curve shifted for one, it would shift for the other. However, after a long campaign orchestrated by the enviornmental group called Greenpeace, which was displeased by Lego’s continued partnership with a company participating in Arctic drilling, Lego finally agreed to terminate their partnership with Shell. The two are thus, no longer complimentary goods. This event may also cause a downward shift in the supply of oil from the Arctic, as now producers may have the expectation of penalties for those who stay. As Greenpeace hoped, this may reduce producers desire to enter the market.

1 Comment »

  1. collinsw Said,

    December 12, 2014 @ 4:52 am

    Greenpeace orchestrated a video that went viral showing a lego world and the people got covered by oil and the point of this video was to get Lego to pull away from Shell. This decision from Lego to pull away from Shell might have been based on the publics perception rather than the company own ethics. I think Lego was probably saw decreased sales because of the publics sudden turn on the company and decided to split its partnership.

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