The Lego Group is a Danish toy company that has been around for over 80 years. Starting as a small wooden toy maker in 1932, Lego is now the largest toy company in the world, with a global revenue of over $5 billion in 2020. What has been the secret to their success? In this article, we will unpack the Lego business strategy and review how they have managed to remain relevant and successful over the years.
Product and Brand
Lego’s business strategy is centered on their product and brand. They have always focused on creating quality, innovative, and timeless products that appeal to both children and adults. The Lego brick is a unique product that has remained virtually unchanged since its inception, yet it continues to appeal to new generations of toy users.
Another crucial factor is Lego’s branding. They have successfully created a brand image that is associated with play, creativity, and fun. Lego has also done an excellent job of branding themselves as an educational and developmental toy, emphasizing the benefits of play in developing a child’s cognitive and social skills.
Innovation
Innovation is another pillar of the Lego business strategy. Lego is constantly innovating with new product lines, collaborations, and technology. They have successfully expanded their product range, currently offering sets for almost any interest or age group, from Duplo for toddlers to Technic for advanced builders. In recent years, Lego has also embraced technology through partnerships with popular video games and movies, such as Star Wars and Minecraft.
Community
Lego has also built a strong community around their brand. They recognize the value of customer feedback and interaction, often engaging with their customers through social media and crowd-sourcing opinions and ideas for new products. Lego also hosts fan conventions and events worldwide, bringing together Lego enthusiasts and creating a sense of belonging within the Lego community.
Conclusion
In conclusion, the Lego business strategy is a combination of product and brand, innovation, and community. They have remained successful and relevant in the toy industry by staying true to their core values and continuously adapting to changing market trends and customer needs. Lego’s global success is a testament to the power of quality, creativity, and fun in the toy industry.
