Essay on LEGO's Innovative Business Model and Strategic Growth

This essay analyzes the LEGO Group's business model, focusing on key elements such as innovation, value proposition, customer relationships, and strategic growth. It examines how LEGO leverages constant innovation and smart-connected products to maintain a competitive edge. The analysis includes a review of LEGO's financial performance, highlighting its significant revenue and cash flow. The essay also identifies LEGO's clear market segmentation and product differentiation strategies. The study references various academic sources to support its findings, emphasizing LEGO's pioneering role in integrating technology into its business model and creating customer loyalty. This document is available on Desklib, a platform providing study tools and resources for students.

Business Model and Key
Findings

Osterwalder and Pigneur business model
• Constant Innovation
• Value proposition
• Customer Relationships
• Key Resources
• Cost Structure
• Customer Segments
• Revenue Streams
• Channels
• Key Activities

• Cash flow was DKK 10.7 billion in 2017
• Lego with an improved business model has
earned DKK 20.7 billion in 2017
• Should be hard to imitate
LEGO Growth Chart

• Lego is a pioneer in using smart-
connected products and
integrating it in business model
• Lego has collected 5,485.72 million
U.S dollars in 2016
• Has increased its sales
• Therefore its revenue shot up to
4.81 billion Euros in 2015
• Identified a clear market
segmentation
LEGO

• Product Innovation
• Product Differentiation
• Customer Loyalty
SMART CONNECTED PRODUCTS

Reference List
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A process for sustainable value proposition design.
Journal of Cleaner Production,
147, 175-186.
Bartneck, C., & Moltchanova, E. (2018). LEGO products have become more complex.
PloS one,
13(1), e0190651.
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Journal
of cleaner production,
65, 42-56.
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MIT Sloan Management Review,
58(1), 31.
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Leadership.
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