Lego case: A classic that continues to play with innovation

LEGO, the renowned Danish toy company, has shaped the childhood of several generations in the entertainment industry since its founding in 1932. With its focus on quality, creativity, and fun, it has managed to transcend time, becoming synonymous with play and learning. Its colorful plastic bricks, which can be assembled to form structures of all kinds, have inspired millions of children and adults around the world to unleash their imagination and build fantastic worlds.

One of LEGO's most remarkable characteristics is its ability to adapt and evolve over time without losing its essence. From its humble beginnings with wooden toys, the company has expanded its portfolio to include a vast range of products, from themed construction sets to video games and theme parks.

Additionally, LEGO has successfully leveraged collaborations with major franchises like Star Wars, Harry Potter, and Marvel, allowing the brand to stay relevant in a highly competitive and constantly changing market. In this new case study, we explore its fascinating history, business model, and the keys to its continuous innovation. Discover the LEGO case.

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LEGO's history: From wooden toys to plastic bricks

LEGO's history dates back to 1932 in the small town of Billund, Denmark, when Ole Kirk Christiansen, a carpenter with a keen business sense, founded a wooden toy manufacturing company. In its early years, the company produced a variety of products, including stepladders, ironing boards, and wooden toys, all made with a strong commitment to quality.

It was in 1934 that Ole Kirk decided to give his company a significant name: "LEGO," derived from the Danish words "leg godt," meaning "play well." What Ole Kirk did not know at the time was that "LEGO" also means "I assemble" in Latin, a presage of what the company would become.

In 1949, the company made a decisive shift by introducing the first interlocking plastic bricks, known as "Automatic Binding Bricks." These bricks, which would be the precursors to today's LEGO bricks, were designed to be easily assembled and disassembled, allowing children to build anything their imagination could create.

Despite initial skepticism towards plastic toys in an era dominated by wooden toys, LEGO continued to refine its design and in 1958 introduced the popular LEGO brick with its tube-and-stud system, offering unprecedented stability and versatility. This design has remained virtually unchanged since then, which could be said to be the key to LEGO's enduring success.

Throughout each decade, LEGO has experienced tremendous growth, expanding from its headquarters in Denmark to the entire world. Although the company has faced challenges, including periods of financial crisis, it has always found ways to reinvent itself. Through continuous innovations, such as product diversification into video games, movies, and theme parks, LEGO has managed to stay relevant and captivating among the children's audience.

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LEGO's business model: Building through play

LEGO's business model focuses on the creation and sale of modular construction sets, based on its iconic interlocking bricks, which allow users, both children and adults, to create an endless variety of designs. The company has developed a diverse portfolio that includes themed sets, such as cities, castles, and spaceships, as well as collaborations with popular franchises like Star Wars, Harry Potter, and Marvel.

This combination of original products and third-party licenses has allowed LEGO to capture a broad spectrum of consumers, from young children to adult enthusiasts, thus consolidating its position in the global toy market. Additionally, LEGO has expanded its business model beyond physical toys, venturing into the digital world with video games, mobile apps, and multimedia content such as series and movies.

The company has also developed unique brand experiences through its LEGOLAND theme parks and LEGO Certified Stores, where consumers can interact directly with the products. This diversification not only reinforces brand loyalty but also creates multiple revenue streams, ensuring LEGO's sustainability and ongoing growth in an extremely competitive market.

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How is LEGO innovating to stay relevant in the market?

One of LEGO's main innovation strategies today is the integration of digital technology into its products. Through the LEGO Technic and LEGO Mindstorms series, the company has combined traditional construction with elements of robotics and programming, allowing users to create interactive models that can be controlled and customized via mobile apps.

Additionally, LEGO has ventured into the world of augmented reality (AR) with its LEGO Hidden Side line, where physical sets are combined with digital experiences that come to life through mobile devices, offering an immersive and engaging play experience for new generations.

Another key area of innovation for LEGO is its focus on sustainability and environmental responsibility. In response to growing consumer demand for more eco-friendly products, the company has launched an ambitious project to manufacture its bricks from sustainable materials, such as plant-based plastics.

Finally, LEGO has implemented recycling programs and strengthened its commitment to education and skill development through initiatives like LEGO Education, which promotes STEAM (Science, Technology, Engineering, Art, and Mathematics) learning in schools.

In conclusion, the LEGO case is a clear example of how a company can evolve sustainably without compromising the quality or essence that made it flourish. What began as a traditional wooden toy factory quickly became the personal idea factory for every child, with just a few plastic bricks.

Today, LEGO is not just a toy, but a global cultural phenomenon that continues to inspire people of all ages to build and create.

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