In the XXI century, the Earth became a kind of big innovation lab, with multiple advances in technology and science. The Internet makes educational innovations spread throughout the world, and the globalization of economics allows big companies to introduce their products to billions of people with various cultural backgrounds. Due to globalization and rapid change in technology and demand, such companies as LEGO needed transformational innovation. However, technological advancement and the diversification of products were not enough for the breakthrough. One of the most significant forces affecting LEGO was innovation – the phenomenon that is the most critical for progress nowadays.
Introducing new categories into a line of products does not always foster sales. For instance, in the mid-1990-s, LEGO’s sales dropped, yet new types of goods such as books and TVs appeared in the product choice set. As more cheap analogs for the LEGO toys appeared on the shelves of retail stores, the company’s sales experienced a decrease. Retailer stores took over specialized shops, creating a niche for multiple toy manufacturers.
The production process remained too expensive for the company, whereas many other industry players made their toys in low-cost countries. Moreover, LEGO design was assumed too complicated and tedious for children who preferred to play computer games and explore virtual worlds. The LEGO group needed to brainstorm to reconsider its policy and renew the assortment of goods.
Being up-to-date and monitoring tendencies in popular culture can lead to unprecedented growth. At the beginning of the XXI century, the company experienced rapid growth caused not least due to the new line of products based on popular movies and books such as Star Wars and Harry Potter. By changing the paradigm, the company was involved in making computer games and movies, building LEGOLAND amusement parks, and manufacturing clothes. These transformations, in their turn, created a need for gifted young specialists who could bring a fresh perspective into the design. Another growth driver was an element of story-telling that made the process of playing more captivating. Nevertheless, using popular culture tendencies was not enough for covering all the expenses.
The use of cutting-edge technology, better IT-platforms for sales, and the rationalization of the budget were just the first steps of the plan. The company lacked an innovative vision, which would create new play experiences adequate to the context of the contemporary amusement world. Having reconsidered the priorities of the company that make it unique, LEGO marketing director Birthe Jenson and her team proposed to make the LEGO toys more realistic.
However, this initiative was not innovative enough to make a significant shift. The company also struggled to cut expenditures on new lines of products and make toys less complicated. One of the steps made by the LEGO brand was inventing an online tool, which made it possible to construct models virtually and then buy necessary details for a traditional toy. Innovation is a powerful force on its own, but it should be combined with technology and custom-oriented policy to make a change.
Finally, innovation is the force that helps the LEGO brand remain up-to-date and represent new product lines. Combined with the authenticity of a brand and decreased expansion, innovation is a crucial force for financial success. Change is closely related to the customer’s satisfaction as the tendencies in popular culture, science, and technology influence both customers and product lines. However, innovation is the main force that transforms traditional ways of thinking and designing into more flexible, adaptive, and creative ones.