When Lego
launched its product called Mindstorms NXT some years ago, the rules for
customer collaboration was changed. It is amazing how Lego has managed to
capture the lead in the toy industry when bankruptcy has threatened the sector
of videogames back then.
Lego introduced
online interaction and community development in 2004. This strategy led to the
creation of virtual development teams which allowed Lego to regain and grow its
share in the market. After eight years, Lego has record breaking double digit
growth rate of 17%. The growth trajectory is still rising as competitors Hasbro
and Mattel stagnate. The impressive growth is attributable to
direct-to-consumer activities, electronic platforms and other innovative
products that Lego introduced to the market.
There are at
least three core elements that contributed to this success. One is customer
interaction. Lego has created the platform designbyme.com where clients can
create their own designs and share it digitally with millions of other users.
Another core
element is board
games. Lego has introduced family board games where the board and the parts
of the game are built from bricks. This 2010 board game was readily accepted by
12.6% of the US toy market. The growth allowed Lego to leverage on its Batman,
Harry Potter and Star Wars franchises.
The third core
element is online games. Lego launched the LEGO Universe,
a virtual space with multiplayer online games. What seemed like a threat for
toy industry players in the past was tamed by Lego when it has also invaded
this turf with its own barrage of multiplayer online games.
Lego’s executive
has been on the hunt of launches that would glue the company’s firm hold in the
toy industry while continuously enhancing the development of Mindstorms. There
is no sign that Lego would let up in its fan-based innovations.
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