Lego Business Model | Business Model Navigator

Overview:

Lego System A/S, doing business as The Lego Group (stylised as The LEGO Group), is a Danish toy production company based in Billund. It is best known for the manufacture of Lego-brand toys, consisting mostly of interlocking plastic bricks. The Lego Group has also built several amusement parks around the world, each known as Legoland, and operates numerous retail stores. The company was founded on 10 August 1932 by Ole Kirk Christiansen. The word 'lego' is derived from the Danish words 'leg godt', meaning 'play well'. In the first half of 2015, The Lego Group became the world's largest toy company by revenue, with sales amounting to US$2.1 billion, surpassing Mattel, which had US$1.9 billion in sales. On 11 August 2017, Lego announced that Niels B. Christiansen would become the new CEO, effective 1 October of the same year.

Industries:

Consumer Goods

Similar firms (based on pattern co-occurrence):

3 shared patterns

2 shared patterns

3 shared patterns

2 shared patterns

3 shared patterns

2 shared patterns

Business Model Patterns:

Direct Selling

How they do it: Lego has a network of brand stores, selling only Lego products and accessories. These are usually placed in popular locations and include exhibition of complicated Lego construction consisting of thousands of individual Lego parts.

E-commerce

How they do it: In addition to its brand stores and selling through retailers, Lego maintains an online store. The online store does not only have the classic products but also exclusive product lines as well as the possibility to purchase individual ”hard-to-find” parts.

Lock-in

How they do it: Lego parts allow individual recombination of the parts. However this recombination is only possible with other official Lego parts and no other toys. This leads to a lock-in for customers, as the size of an existing Lego collection determines also the value of new Lego products, as the recombination possibilities are increasing.

Mass Customization

How they do it: The many opportunities to take Lego sets apart and recombine the individual parts across sets to individual buildings, allow customers an unlimited amount of individualization opportunities with their Lego toys.

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