Lego is a giant in the toy industry, the danish company is second only to Mattel-the producer of Barbie dolls in terms of sales. One may think the introduction of video games would damage sales of the toy giants, but in contrast the company embraced digitization and continues to grow.
We shall therefore evaluate the success of Lego in implementing its digital business model.
Figure 1: Digitalization mowves of Lego Groups:source Figure 2 :Statista(2020)
Toy blocks that can be assembled and disassembled are the backbone to legos success in the past but implementing several digital services is why it continues to be successful in recent years.
Digitising products and services
The company has always been driven by the interest of little children however the importance of parents participation in the process is highly regarded as well. The company plans to allow users to print customized Lego bricks using 3D printers. Interested customers can buy 3D printers from Lego, request designs online or come up with their own design and print it from their home. Lego see’s 3D printing as a way to generate income rather than a source of competition. This unique business model of C2B(consumer to business) where consumers can request for anything from producers allows for a more tailored experience.
Another ambitious plan is the robotics the company is working to implement. To connect physical products they make with the virtual reality world of video games. Integrating digitalization into its product directly.
As children moved to playing with gaming consoles the company started to develop video games and continues to do so, popular games include Lego movie video game as well as collaborations such as the Harry potter collection and DC super villains.
Figure 3: The Lego video games series
Digital Platforms
Digital platforms help Lego narrow the borders across the world,
Lego Life– an APP on which children can share their LEGO creation, it’s also a children community for interactive playing experience where they can meet other children with similar interest.
Facebook twitter paypal-Facebook and twitter are online social media platforms Lego use in engaging with fans and putting out inspirational ideas as well as promote the brand. It has 13million followers in facebook therefore a perfect platform to also announce upcoming events and Paypal is a digital platform the company works with to ensure fast secure payments by their customers.
Crowdsourcing in product design
For innovation of models, Lego Ideas was used to generate ideas from customers. You can come up with your own Lego design or vote for others’ designs, if an idea is upvoted 10000 times, then the idea will be considered by Lego whether or not to commercialize it. By doing this, a strong online consumer presence was set up and the relationship between Lego fans and the company became closer. It also saves Lego from commercializing too many products without sufficient interest in the product.nobody knows the interest of consumers than the consumers themselves. This is sharply in contrast with innovation in 2000 that almost led the company into bankruptcy. Innovation back then was backed by experts rather than consumers.
Figure 5: Lego Ideas
Pricing strategy
Free
Customers can enjoy several free to access games online as well as promotional events, most APP’s created by lego are free to download as well. The free experience does not end there as several shops around the world serve as an outlet to show off the endless possibilities of the company. Hands-on events that allow customers to have a taste of the product before buying entices their desire to purchase the product.
Freemium
Games are free online and free to download on the IOS app store and Google play stores, however special features and an improved customer experience is only possible if a premium fee is paid. Examples are copyrighted products from companies such as Star Wars, Harry Potter and Marvel. Lego VIP is a free to join loyalty program, however benefits or premiums can only be unlocked with making purchases.
Figure 6：source
Learning from entertaining
If one should think Lego is only in the entertainment industry, then they are not completely right. Lego offers a consulting service for firms called “Lego serious play”;during a workshop accompanied by the use of Lego bricks to build structures.This exercise has helped staff in companies reignite their creativity, better understand one another and relieve stress. After the consultation it has been proven that it has led to enhanced innovation and better business performance.
Changing the jobs roles
Lego has created a secondary industry as ‘Lego artist’ continue to push the boundaries of creativity and design more complex art works with LEGO bricks, these designs accompanied with the LEGO life app as a platform has allowed artist to express themselves and put their talent on display.
Conclusion
Lego’s digitization has evolved in many ways in terms of products, marketing and their own organization. This combination makes them stronger. Lego has become more attractive and exciting by integrating physical and digital games while maintaining physical core businesses such as Lego City. Digitization for Lego has truly saved them from bankruptcy and increased profits every year for the brand. It continues to innovate and grow and there’s no sign of the company slowing down.
References list:
LEGO business model canvas. (2020). Retrieved 4 March 2020, from https://vizologi.com/business-strategy-canvas/lego-business-model-canvas/
Transforming Lego Group for digital transformation(2020). Retrieved 4 March 2020, from https://ctl.mit.edu/sites/ctl.mit.edu/files/attachments/MIT_CISRwp407_TheLEGOGroup_AndersenRoss_0.pdf?source=post_page—————————
About us – LEGO.com GB. (2020). Retrieved 5 March 2020, from https://www.lego.com/en-gb/aboutus
YUXUAN's blog 
I think the communication between LEGO and consumers is very good, through the website, App and various social platforms. I like Lego Idea very much because when I first contact with Lego, I think it’s a very innovative brand. I once saw an instagrammer that was buying LEGO bricks to assemble it by himself. His designs are innovative, and many people have left messages said to want to do the same one. I think it can be achieved by the Lego Idea. And it also shows that LEGO is fully aware of the importance of consumer opinions to them. In this digital age, LEGO can use multiple channels to understand customers’ ideas and realize their wishes. Besides, films and surroundings that LEGO has participated in these years have also been successful. On the one hand, LEGO promoted itself and entered other areas.
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