New to AS Business ( BUSS1/BUSS2) | Step Up to A2 Business (BUSS3 / BUSS4)
Pink bricks for girls? Lego builds a new strategy
Opinions on this move has sharply divided Lego fans! The Guardian invites its readers to vote on the matter to decide if this step is ‘sexist’ or not. My daughter was seriously unimpressed when her Lego Club magazine arrived this month in a different format to her brother’s copy.
Clearly, the company have decided to put extra resources into refining the market segment for girls’ Lego and developing product lines tailored to their tastes. What else can we say about their strategy?
When you read some online comments, you wonder if people even realise that Lego is a private company, not a branch of the Danish public sector. A lot of adults remember Lego from their childhood and fondly associate it with innocent play. They don’t want a reminder that Lego is almost certainly trying to achieve high profit as a long term corporate aim.
According to The Guardian, Lego’s director for the UK and Ireland said the company had tried on previous occasions to come up with something specifically aimed at girls, but nothing had worked. Now, alongside the usual policemen, helicopters and dustbin lorries is “Stephanie’s cool convertible” – a purple car with pink accessories – and the “Butterfly Beauty Shop”, complete with lipsticks. He said: “After four years of research involving mums and daughters, we’ve come up with something called Lego Friends that is selling extremely well; it will help drive growth in 2012.”
Lego is doing well – their director went on to say that the company had prospered because of “product innovation and the tendency of consumers to fall back on trusted brands during hard times”. That’s a reminder that Lego has constantly updated its strategy to cope with the pressure of competition for a children’s building toy that was not long ago in danger of looking outdated and obsolete among PlayStations, remote-controlled cars and interactive robotic film characters.
You can use a framework like Ansoff’s matrix to see how the business has moved over the last 20 years:
- Market penetration: working hard on promotion to build sales of the basic Lego product range in its traditional markets of Europe and America.
- Product development: Lego is much more heavily based around product lines that have been developed to tie-in with film franchises like Harry Potter, Star Wars, Indiana Jones and Pirates of the Caribbean.
- Diversification: Innovation is often high risk, and Lego have stumbled at least twice. First was a costly move into theme parks, from which the company has retreated. Then in 2011 was the much hyped online multiplayer Lego Universe game, which has just quietly been folded too. But elsewhere Lego have found success with Nintendo DS, PC and console games.
- Market development: Here’s where the company has tried taking an existing product, but tried to develop a ‘new’ market that is specific to girls.
Strategy & Technological Change: Will Google Glass be as Big as the Smartphone? [16 May 2013]
Leadership & Culture: The Depends On Factors that will Determine Apple’s Future? [14 May 2013]
Innovation: Will eBikes Power Ahead? [5 May 2013]
Strategy: Ikea Diversifies into Hotels [23 Apr 2013]
Innovation: Google Glass - the Computer Your Wear [23 Mar 2013]
Growth strategy - Tesco’s “Related-diversification” into Family Restaurants [15 Mar 2013]
An Organic Growth Strategy Based on Innovation - Lego Powers Ahead [22 Feb 2013]
Samsung - the World’s Biggest Diversified Company? [9 Feb 2013]
Innovation - Behind the Scenes at the Airbus Wing Factory [10 Jan 2013]
Is the iPad inspired iPotty a viable business idea? [10 Jan 2013]
Technological Change - Robots Move On From the Production Line [27 Dec 2012]
Big Data - How Product Design & Innovation Needs to Work in Harmony [27 Dec 2012]
Revision Presentation - Ansoffs Matrix [24 Dec 2012]
Ansoff and Tesco - What Went Wrong with Fresh and Easy? [6 Dec 2012]
HMV’s strategy of diversification comes to an end [4 Dec 2012]
Revision Quiz - Innovation [1 Dec 2012]
Revision Quiz - Marketing Strategies [29 Nov 2012]
Innovation: Big Spending on R&D Doesn’t Necessarily Mean Strong Innovation [11 Nov 2012]
Innovation - the CEO’s Role in Making it Happen at Tesco [11 Nov 2012]
Understanding the Growth and Changing Nature of the Digital Society [11 Nov 2012]
Mitigating Business Risks in Uncertain Time [20 Sep 2012]
Customer reactions to the new iPhone 5 - did anything change? [14 Sep 2012]
Success for Lego with its focus on a different market segment [1 Sep 2012]
The Ideas Exchange [30 Aug 2012]
Technological Change & Innovation - Insights and Quotes [28 Aug 2012]
Technology, Culture & Innovation: What’s Gone Wrong with Microsoft? [19 Aug 2012]
The Dragons get it Wrong [19 Jun 2012]
What is the ‘Scary Zone’? [18 Jun 2012]
ResearchBuster: Acquisitions [17 Jun 2012]
Starbucks chooses the takeover option to diversify into baking [17 Jun 2012]
Takeovers and Mergers - the Language of M&A [13 Jun 2012]
Copycats and ‘Me Too’ products [25 May 2012]
Marketing case study: the Swiss Army knife [24 May 2012]
Epic fail: how to do really badly [15 May 2012]
Technological change - manufacturing and innovation [20 Apr 2012]
Strategy - How Nokia was overtaken by Apple and Samsung [17 Apr 2012]
Revision Presentation - Business & the Technological Environment [9 Apr 2012]
Starbucks acquisition provides the base for entry into the juice bar market [25 Mar 2012]
Two Lesson Videos on Nokia - Will their Strategy Work? [13 Mar 2012]
Apple’s new CEO and a new iPad - A Change in Leadership [9 Mar 2012]
Start-ups - the Wooden Smartphone? [4 Mar 2012]
Ideas not Hierarchy Makes a Business - Steve Jobs on Teamwork & Culture [13 Feb 2012]
Innovation in Business - Perspectives from Stephen Elop (CEO of Nokia) [12 Feb 2012]
Product innovation - extending the humble cupcake [10 Feb 2012]
The history of Apple’s product innovation - in 30 seconds [10 Feb 2012]
Private equity buyouts - Sunday Times supplement [6 Feb 2012]
Success for the Daily Mail’s online strategy [30 Jan 2012]
Leadership - Howard Schultz on the importance of leading an innovative culture [29 Jan 2012]
Strategic choice: What should Apple do for its investors? [29 Jan 2012]
Technological change: 3-D printing promises a new industrial revolution [28 Jan 2012]
Technological change: now you can have your own factory! [28 Jan 2012]
External influences: the threat that is China [23 Jan 2012]
What’s gone wrong for Kodak? [19 Jan 2012]
Business size and the innovation debate [11 Jan 2012]
Revision Presentation - Innovation [2 Jan 2012]
Business Innovation - where do good ideas come from? [2 Jan 2012]
Investment in People - Google and Human Capital [27 Dec 2011]
A trip down memory lane for a great business studies resource [3 Nov 2011]
PepsiCo: economies or diseconomies of scale? [2 Nov 2011]
Technology and Business - Microsoft’s vision of the mobile future is astounding (video) [28 Oct 2011]
Strategy case study - does Microsoft have a long-term strategy? [21 Oct 2011]
Greggs, Sausage Rolls and the Ansoff Matrix [20 Oct 2011]
How PepsiCo are trying to control diseconomies of scale [18 Oct 2011]
Pining for Success - Heston’s mince pie innovation [13 Oct 2011]
The Business of Newcastle United [12 Oct 2011]
Ansoff and the Boston Matrix can’t help Kodak [6 Oct 2011]
Invention in a Bottle [28 Sep 2011]
Insights on invention from Trevor Bayliss [14 Sep 2011]
Tesco pulls out of Japan [4 Sep 2011]
Can investment in R&D provide a competitive advantage? [31 Aug 2011]
Where there’s muck there’s brass [6 Jul 2011]
Innovation and Persistence holds the Key for King of Shaves [4 Jul 2011]
Evan Davis ‘Made in Britain’ - and a new trade data tool to play with [21 Jun 2011]
The Chocolate Business Angel’s Views on Entrepreneurs [21 Jun 2011]
Technology & innovation - extending the humble contact lense [9 Jun 2011]
Nestle and Diversification - Investing in Healthcare [25 May 2011]
Organic growth strategy - the benefits if firms “believe in better” [24 May 2011]
Stay small and focused - business lessons from Adele [24 May 2011]
Strategy explained - Insights into Amazon [13 May 2011]
Jaguar goes for NPD investment with £5bn plan [10 May 2011]
HMV Strategy - Death of a Billion Downloads [24 Apr 2011]
Tesco - The right strategy in the US? [23 Apr 2011]
Superb Analysis of the UK Coffee Market [5 Mar 2011]
Michael Porter - Shared Value and the Limitations of CSR [15 Feb 2011]
When Stella Met Cider - Ansoff Matrix in Action [3 Feb 2011]
The Strategy Battle of 2011 - David’s kid brother versus Goliath [17 Jan 2011]
An idea that’s a lot of hot air…. [11 Jan 2011]
Innovation and ideas - what makes a successful business concept? [8 Jan 2011]
Video case study - Harris Tweed prospers through innovation and international expansion [29 Dec 2010]
Innovation and Invention - the Toy Story [23 Dec 2010]
Innovative ice breakers to fill a market gap [2 Dec 2010]
Dominos Pizza - Growth & Strategy (Part 2) - Innovation, Service and Smart Operations [26 Nov 2010]
Strategy - The Challenges Facing Nokia [21 Oct 2010]
Google, Profits and Diversification [16 Oct 2010]
McDonalds to diversify into…weddings [14 Oct 2010]
Google on the changing face of advertising [8 Oct 2010]
Retro innovation at Porsche - Where does it sit with Ansoff? [29 Sep 2010]
The technological wave in television - who will win the 3D battle? [30 Jul 2010]
Does Nokia’s Strategy Need An Upgraded CEO? [30 Jul 2010]
Retail banking through the ages - a pictoral guide [29 Jul 2010]
blog comments powered by Disqus
Business Studies Revision / Exam Coaching Workshops Coming Up:
GCSE Business (AQA Unit 2 & Edexcel Unit 3)
Thursday 24 April 2014 - Birmingham
Friday 25 April 2014 - London (Stratford City)
AQA AS & A2 Business (BUSS1 & BUSS3)
Monday 20 January 2014 - London (Stratford City)
Tuesday 21 January 2014 - London (Fulham Broadway)
Wednesday 22 January 2014 - Bristol (Cribbs Causeway)
Thursday 23 January 2014 - Birmingham (Star City)
Friday 24 January 2014 - Manchester (Salford Quays)
AQA AS & A2 Business (BUSS2 & BUSS4)
Tuesday 25 March 2014 - London (Stratford City)
Wednesday 26 March 2014 - London (Fulham Broadway)
Thursday 27 March 2014 - Bristol (Cribbs Causeway)
Friday 28 March 2014 - Birmingham (Star City)
Tuesday 1 April 2014 - Newcastle (Metro Centre)
Wednesday 2 April 2014 - Leeds (The Light)
Thursday 3 April 2014 - Manchester (Salford Quays)
Post-Easter (BUSS1/BUSS2 Combined & BUSS4)
Monday 28 April 2014 - London (Stratford City)
Tuesday 29 April 2014 - London (Fulham Broadway)
Wednesday 30 April 2014 - Bristol (Cribbs Causeway)
Thursday 1 May 2014 - Birmingham (Star City)
Friday 2 May 2014 - Manchester (Salford Quays)
Try some of these superb starter activities for Business Studies:
- Anagram Countdown
- Beat the Teacher
- Bellwork
- Budget Basket
- Memory Challenge
- Loop Cards
- I'm the Question
- Catchphrase - Say What You See!
- Consider All Possibilities (C.A.P)
- i-Teach
- Teacher Talkabout
- Perfect Recall
- Pass the Buck
- What would you have invented?
- These are a few of my favourite things
- Set Your Students the 15 Word Challenge
- Topic Tennis
- What Why Depends - Developing Thinking Skills
Join our Business Teacher Email Newsletter
Join our community of over 15,000 Business Teachers & Lecturers who receive our Business Teaching Resource Newsletter
| Business Studies Blog | Economics Blog |
| Geography Blog | Politics Blog |
| Give It A Go! Blog | Sociology Blog |
