26-01.

LEGO

Pattern description

LEGO simplified its operations and reduced the complexity of production processes. In particular, the company reduced the number of different plastic bricks by the way of eliminating complex and expensive bricks. The focucing on the standard bricks design made production operations of LEGO more flexible and allowed to respond quickly to market trends.

LEGO adapted its sets to the dreams and desires of children of the XXI century (for example, LEGO Mindstorms include bricks with software and hardware to create individual robots).

The company enters new markets, developing sets for segments that have not been covered before (for example, girls-oriented sets) and through the coming to countries with developing economies.

Inventive problems

The assortment should be narrow to focus attention and resources on the production and sale of a minimum number of types of products.

The assortment should be broad to meet the needs of a large number of different consumers.

References

Alexander Osterwalder, Yves Pigneur. Business Model Generation. A Handbook for Visionaries, Game Changers, and Challengers. Wiley, 2010.