Mani MasoodInnovation is the key to success for any business in today’s society. This is especially true for the Lego toy group, which was once in danger of going bankrupt in the early 2000s. However, by embracing unique ideas, Lego has been able to create a number of fine options that have given the business a number of benefits and features that allow it to be more successful. In this article, we will explore Lego’s business strategy and how it has helped the company thrive.
Innovation stands as one of the most vital yet challenging business strategies in today’s competitive landscape. It drives the creation of fresh concepts, attracts new customers, and enables companies to outperform their rivals.
Using Crowdsourcing to aid RND
Lego’s innovative strategy involves crowdsourcing, where the general public is allowed to submit ideas online to improve the company’s products. This approach has not only helped Lego save money on research and development but has also allowed fans of its products to be more creative. It’s as though they are allowing those people to be entrepreneurs of sorts. By engaging the public, Lego has been able to generate new ideas and concepts that have helped to keep the company relevant and innovative.
Extending To the Digital Realm
The younger generation today is glued to devices and loves apps, and as a result, Lego’s new target audience has also gravitated towards the use of electronic devices for their entertainment. To meet this demand, Lego has decided to incorporate its physical toys into the digital realm. This has become a key to Lego’s success as it allows people to get accounts online for all sorts of Lego features.
People are allowed to link to their social media accounts and share their products while also using different applications and programs to allow people to track their process and to interact with what they build in a virtual environment.
The development of programmable robots in the DIY Mindstorms series has been particularly successful. This is an innovative series where a user can build a robot and control it through Bluetooth-connected controls or through downloadable programs. This allows users to create items that link the physical and virtual worlds together, providing a unique experience that has captured the imagination of Lego fans.
The Creation of Branded Stores
Lego has not abandoned the brick and mortar strategy but has embraced it through the creation of branded stores. These stores have particularly helped Lego over the years to allow products to become more popular and interesting for all people to explore. By sticking with its own sales process instead of having to stick with shipping its products off to third parties for sale, the company can save money on getting more items ready.
Lego’s branded stores grant people access to its entire product line, in addition to offering services that allow them not only to view real models of various products but also to purchase individual pieces from specific barrels, categorized by type and color. This approach empowers people to exercise greater control over their creative process and stimulates their imagination.
Advantages and Disadvantages of Lego’s Business Strategy
One advantage of Lego’s business strategy is that it has been able to stay relevant and innovative by engaging the public and embracing new technology. This has helped the company to grow and thrive even in a constantly changing market. However, one disadvantage is that Lego’s products can be expensive, which can make them less accessible to some consumers. While the company’s focus on innovation has helped it to stand out in the toy industry, it has also made its products more premium and expensive.
Anyone interested in digital transformation or business strategy should consider Lego’s last decade of innovative business strategies a mandatory read.
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