Do you know why Lego won? It’s almost impossible to talk about creativity and innovation in the toy industry without mentioning LEGO. This Danish company has managed to establish itself as a global phenomenon, outpacing its predecessors like Kiddicraft. So how did LEGO turn the tide in its favor? The story unfolds in a fascinating YouTube video titled “Why Lego won”.
LEGO vs. Kiddicraft: A Look at The Past
Hilary Page, the English toymaker, designed Kiddicraft’s self-locking building bricks during the 1940s. These blocks, although remarkably similar to the present-day LEGO bricks, had certain limitations in terms of design and functionality.
LEGO didn’t hesitate to use Kiddicraft as an inspiration, but it also recognized the need for improvement. The LEGO plastic mold was nearly identical to the Kiddicraft one, but LEGO made adjustments to the scale and studs.
Refining the Design
LEGO’s breakthrough came when it made crucial changes to the original design. One significant alteration was the addition of tubes in the center of the bricks. According to LEGO, these tubes enhanced the bricks’ “clutch power”, making them far more reliable than Kiddicraft’s bricks. The design tweaks not only differentiated LEGO from Kiddicraft but also secured a patent to protect LEGO’s product and fostered innovation.
LEGO’s Marketing Epiphany
In the 1950s, LEGO rethought their product positioning under the leadership of Gottfried Kurt Christiansen. Instead of producing an array of disconnected toys like Kiddicraft, LEGO emphasized on creating a “LEGO system”. This idea of interconnectedness transformed LEGO into a vibrant place where people and bricks collaborate towards the shared goal of creation.
Christiansen proposed six rules of play:
- Limited in size, limitless in imagination
- Simple, durable, and offering rich variations
- For girls, for boys, for every age
- A classic toy, timeless
- Easy to distribute
The Key Differentiator
The beauty of LEGO lies in its combination of engineering excellence and platform marketing. LEGO was no longer just about selling toys; it was about providing a system of play. This unique perspective has helped LEGO stay ahead of the competition and continue to innovate. Even today, the current CEO emphasizes the importance of selling bricks and cares about the LEGO platform.
Why LEGO Won?
So, was it the ingenious tweaks to the design or the creative system of play that put LEGO in the lead? Undoubtedly, both elements played a crucial role. LEGO not only reimagined Kiddicraft’s blocks but also built something new, superior, and consequently, iconic. LEGO’s unwavering commitment to innovation is what sets it apart.
Insights and Recommendations
This video provides valuable insights into how a company can transform a simple idea into an iconic product. It serves as an excellent case study for students of economics and marketing, illustrating the power of innovation and strategic marketing.
I highly recommend this video to everyone, not only to understand LEGO’s remarkable journey but also to gain insights that can apply to any business model. It’s a reminder that constant innovation and a clear understanding of your product and market can indeed turn the tide in your favor.
So, remember, like LEGO, never stop building. Whether it’s a product, a strategy, or a dream, continuous effort and innovation are the keys to success.