Etude de cas de LEGO

Case: LEGO

1. Short case description
2. Analysis of the leverage points for value creation
3. Analysis of potential issues or concerns
4. Summary of lessons learned from the case and suggestions for future management action

1. Short case description

LEGO is the most known toy in the world, founded in 1932 by Ole Kirk Christiansen and meaning “play well”, these building blocks have been through some troubles but are still in a good position of the market nowadays. With the technology, videogames, connected games, etc the future of LEGO was unsure, but they innovate all the time to be exposed and though that a kid should never stop to build thing with their own hands whereas in a virtual game.

LEGO have been twice named toy of the century by Fortune Magazine then by the British Association of Toy Retailers. There are not less than 17,8 billion LEGO bricks made per year (with additional components included).

They now got a wide range of products, for example they launch a “girl” brand to be more attractive called LEGO BELVILLE and they have done lots of partnerships with Harry Potter or Star Wars to reach fans of those brands and make people speak about the company and be more and more creative and innovative to attract new consumers and even adults. There is show settled with LEGO fans and they made big project and they show it on internet, it takes them month and even sometimes years to finish their project because it’s a passion for them, and when they settle the show, LEGO pay nothing at all, it’s free publicity so it’s good for their image and that’s also why adults are important and their target consumers.

LEGO also integrated technology in its market in 1984, allowing children to create and design robots and do tournaments all over the world.

This also permit to their community of fans to get to know each others and exchange what they know.

In their headquarters in Billund, LEGO is always looking for improvement and looking for ways to improve the creativity and the wellness of the children. That’s why they created “The Labs” by watching children from different countries, they can spot trends and they will develop them, always trying to push their creativity.

1. Analysis of the firm’s current market position

LEGO is the 6th largest manufacturer of toys and is diversifying its offer. LEGO keep its bricks as it is its original product and made up its reputation. But that’s not enough that why they develop a new range of product, still around the bricks but added upgrades to it. Also, LEGO is moving into different market segment with LEGO BELVILLE to reach young girls (like Polly Pocket for example). BIONICLES concern teenagers who wants to play online.

They also divided into 4 themes their development: First concerning the construction and building idea, second around motion (like playmobile for example) ; third the LEGO figures, because now boy and girls like to have “people” to play with and fourth the intelligence and behavior (attracting people who likes video games). They have been really smart and we couldn’t imagine that from bricks, it would come all of those possibilities. But they took what it works for their concurrent and applied it well into their own world and brand. Partnerships are really important to LEGO, it makes people coming into their shops just for the alliance but when they enter the shop they realize how LEGO has changed and it is good for LEGO even if it cost lots of money. The one with Media Laboratory at MIT concern more technological toy but still, allow to diversify the LEGO market propositions.

Being focus on what children needs to develop its creativity is their priority. Their study concerning that allow them to have a good judgment of what is going to work or not. The Labs is the proof.

There is a toy for each child at LEGO.

1. Analysis of the role of corporate entrepreneurship

The definition is that the role of a corporate entrepreneur is to reach economic growth, social integration and the discovery of new products or applications.

Here, LEGO is absolutely in the good way and should keep going like that. It seems that nothing can stop the machine. They do everything they got to be attractive? Even their website is one of the top 25 “Lifestyles and children’s websites” in USA, because they develop stories related to the toy they sell, making children attracted by the products, the virtual community is also great because they can speak about their passion and about their construction, helping some people to go further or give advices for they constructions. Their shops are also amazing, they have done almost the same as M&M’s have done with those column (see the picture below) with the rainbow colors and the huge construction crossing the walls or the bench for example in Indonesia where you can seat just in front of the shop. It makes memories and you speak about this around you, they create a buzz constantly, to don’t be forgotten by adults too. When you are a child and you have good memories with one brand of toy, then when you will have yourself children, you will want to buy the same brand as you had, because it’s making you feel when you were at their places, it’s a positive emotion and so, that’s why LEGO wants to keep their customers during all their life.

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