The Strategic Success of Lego: A Case Study in Business Strategy
Lego, a company that began in 1932, is one of the most recognizable and loved brands globally, generating revenue of around $5.8 billion in 2020. The reason behind Lego’s business success is its unique and effective business strategy. In this article, we will delve into the strategic approach of Lego, which made its way to become one of the world’s biggest toy manufacturers.
Identification of Core Values and Branding
Lego’s brand identity is recognizable worldwide due to its iconic interlocking plastic bricks. However, the company’s journey did not start by manufacturing these classic bricks, but by creating wooden toys. The shift from wooden toys to plastic bricks was a strategic move that brought significant success to Lego.
Lego’s core values constitute creativity, innovation, and imagination. The company’s tagline, “Inspire and Develop the Builders of Tomorrow,” represents their focus to create and innovate. Building blocks provided children with the freedom to create their own structures, promoting imaginative thinking and learning through play.
Innovation and Diversification
Innovation is a key driver for Lego’s success. They continuously strive to find new and improved ways to engage customers. The Lego Idea platform, which allows customers to submit and vote on ideas for new Lego products, is a prime example of innovative customer engagement. Lego launched the platform in 2008, and since then, many submitted ideas have been transformed into actual Lego sets.
Moreover, Lego’s diversification strategy, which creates partnerships with other brands, has brought in significant success. The company’s Harry Potter and the Star Wars product lines are a prime example of how partnerships can help diversify product offerings and generate revenue.
Targeting Multiple Customer Segments
Lego has used a multi-segmentation approach to target customers of all ages and interests. Lego City, Lego Friends, and Lego Technic are just a few of the product lines they offer to a wide range of audiences. Lego has products for adults and children of all interests, including robotics and STEM kits, which engage children in the fields of science, technology, engineering, and mathematics.
Digital Transformation
Lego’s digital transformation has brought a significant increase in its revenue and relevance within the toy industry. Lego recognized the importance of digital media and established an online presence, providing an interactive and engaging experience for customers. The company’s video games such as Lego Star Wars and Lego Harry Potter, along with its animated movies, have broadened Lego’s reach to younger audiences.
Conclusion
In conclusion, Lego’s strategy to identify core values and engage customers through innovation, diversification, and segmentation has brought significant success. The company’s focus on creativity, imagination, and learning through play makes them unique and stands out as a globally recognized brand. Lego’s digital presence and partnerships with other brands have also allowed the company to maintain its relevance within the rapidly changing marketplace. Lego’s ability to create and innovate for customers of all ages and interests is what ensures its sustainably successful position in the toy industry.
(Note: Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)
Speech tips:
Please note that any statements involving politics will not be approved.