Blog Post #2: How Lego Adapts to Changing Markets
For a company whose main products are plastic bricks, Lego has survived the ever-changing market of toy manufacturing and has even risen in the ranks within this industry. How has Lego stayed relevant to consumers in the computerized world? By utilizing the company’s strengths to overcome threats and and to embark on new opportunities, Lego maintained customer loyalty while reaching out to the new generations. Having been an existing brand for more than fifty years in the running, the reputation developed by Lego allowed it to license its logo to other products, such as shoes and bed-sheets, while having the actual company manufacture what it is known for: the plastic bricks. Consequently, Lego is able to stay focused on its goals as a company. From this, Lego was able to dominate its competitors who sell similar products because of its long-standing global reputation. However, Lego could not simply rely only on its previously established customer loyalty for its revenue, and so Lego began to branch into the digital world to relate to the incoming technology-based generation. This was done through Lego’s immersion into the video game and television show sector of the media industry. With this expansion comes new story-lines to enrapture both children and adults alike, connecting new and old fans through the concept of imagination of what can be made from simple bricks. Overall, a thing or two can be learned from Lego’s journey as a brand. For starters, it showcased how a company can adapt to changing markets without losing its original value proposition, but can instead enhance and build upon its initial concept. To add on, it is possible to bridge the gap between the digital and the hands-on world; highlighting how a flexible and relevant product can survive the turmoils of the market.
