I definitely agree that the number of bricks has increased over the last several years. However, different from the late 1990’s / early 2000’s, this is likely due to the Future Lab’s field research and response to studies of core customers, not simply to creative designers deciding to focus on craftsmanship/complex designs. It will be interesting to see how the company fairs as it does increase the complexity of its products to appeal to a broader market!
I really like the images you included! I totally agree that there has been a resurgence of the “basic” bricks. I do think the LEGO store helps in terms of brand perception and getting the name out their, especially in light of the competition from Mattel and other toy companies.
You make great points. LEGOland theme parks are actually not owned by LEGO Group. I think they made a smart choice to divest of these assets earlier in the 2000s since their core competency was not hospitality.
Totally agree that brand perception is huge for them, especially among their target market, which is not just kids, but parents of kids who must decide that it is worthwhile to buy LEGOs for their kids.
Great points on e-commerce. They have a great website where customers can buy directly through the site, but I am not sure the impact e-commerce has had on their top line. In terms of growth, the company has definitely moved beyond its core markets of Europe and North America and is doing a major push in Asia. Their current focus is on finishing up a new manufacturing plant in China which will serve all of their Asia markets.
You make a great point. The reason LEGO has been so successful in the last 10 years in terms of design and innovation is because of their intense focus on understanding their core customer. The company undergoes deep ethnographic studies of how kids play and through this understanding, creates new products. I would be interested to see how LEGO expands/changes its product line given the technological innovations across the gaming space.
Thanks for your comments! I think originally when they cut down the number of pieces, demand didn’t actually suffer much because at the time, something like 30 products generated about 80% of the sales. They really cut out the “loss leaders.” In terms of integrating the entire supply chain, my understanding is that they have been able to negotiate attractive pricing from suppliers and given their focus is on design and quality, I would think they would want to focus on these core competencies.
Great post! As I was reading this, I couldn’t help but think about our accounting case on Alibaba and the similarity between its two-sided market place and Etsy’s. It is often times difficult to manage both parties and build trust between them, and it seems that Etsy has been able to do this successfully. What I question about Etsy is the strength of its community. Loyal, committed sellers and buyers are the engines for Etsy’s continual growth and should either side back away, the company may cease to exist. Do you think there are enough passionate, engaged members of the Etsy community for the company to maintain its relevance among the saturated market of retail e-commerce sites (Amazon, Jet, E-bay, Spring, etc.)? Does Etsy have a “niche” enough business model to attract new customers and maintain its existing base? Another question I had was related to its process of innovation and product quality. How does Etsy decide which designs to list on its site and which not to? How does it ensure top quality given it is simply the middleman between the two parties?
Great post! A few questions came to mind as I was reading it. Our generation cares about the environment, but is this just a fad? How can Reformation ensure that it will maintain its relevancy among its core customer base who most likely will have a constantly changing list of “causes” they care about? Another question that came to mind was one of quality and price. How does Reformation ensure that its quality is just as good or better than other fashion companies that are not as environmentally friendly in their production processes? Does Reformation charge a premium for its clothing to message “high quality” or does it charge lower prices to make its clothing more accessible? Finally, does the current operating model allow for flexibility in terms of design innovation? Are there any hurdles that Reformation faces in terms of being able to meet the demands / tastes of its customers given its focus on sustainability?
Very interesting post! I’d be interested to understand Chobani’s process for innovation. I know they had been struggling last year financially and their Chobani “flip” product really saved them. What is their current strategy for deciding what products to launch? What products to market? What role does the R&D team play in the product launch process? Additionally, as Chobani thinks about future growth in an already saturated market, I wonder if there is an opportunity to break into other product categories like cream cheese or sour cream, utilizing their existing recipes, as well as to expand its target customer from the “female shopper” to the “male who chooses chips and chobani dip.”