Absolutely, we recognize Lego as a National Toy Hall of Famer and certainly, it’s one of those toys that has left its mark in our lives – but with the blitzkrieg of digital games, creative play has entered a different realm. And with an unstable global economy, the world toy market has naturally slid.
See, in this technology driven age, do think Lego stands a chance? Obviously nil if it fails to evolve. This is something Lego understands which is why it’s gearing towards more computer games to encourage physical experience; and at the same time developing more tie-ups with popular movie franchises.
Could it thrive with just these two tactics?
More computer games. This should be broadened to not simply more but appealing. And being Lego, we expect these games to be in block form. Also, it would definitely help towards “physical transition” play if games were in 3D of course.
More movie tie-ups. This is good although an expected move; how about producing an animated cartoon or TV program with Lego as the centerpiece? Reconsider tying up with fast food chains and have some Lego products as part of their promotions.
Now let’s get into their veins a little more…
Asian-based factory. On a quick glance, a 50% annual growth in Asian revenue deserves a setting up of an Asian-based factory. Assuming that checks and balances were thoroughly examined, the question here would be its medium to long-term existence; hence, the size and capacity of the factory.
No Acquisition philosophy. From the words of chief executive Jorgen Vig Knudstorp, “We have never made an acquisition, and have no plans to make one. We are all about Lego, Lego, and Lego” – we could see that its uniqueness has made it a household name. And whether it’s good or not, you could verify it through their financial strength. Nonetheless, long-term sustainability would depend on their flexibility, personnel, and investments.
Lego has a different appeal that could survive generations yet more than its fantastic blocks and great themes, all it needs is a regular and exciting “storm”.
What’s your take?