Analysis of Innovation and Competitive Advantage: The Lego Company

This essay examines the innovative strategies of the Lego Company, highlighting its adoption of unconventional thinking and its ability to gain a competitive advantage in the market. The analysis begins with an overview of Lego's innovation process, drawing parallels with Kiddicraft's initial adoption and subsequent modifications. It emphasizes the importance of dimensional differences and consumer appeal in driving Lego's success. The essay also explores the multidimensional nature of innovation, considering factors such as consumer buying power, entertainment trends, resource availability, and economic conditions. Furthermore, it addresses the environmental drawbacks associated with the use of plastic in Lego products, emphasizing the need for sustainable innovation. The essay then contrasts Lego's approach with other companies that are hesitant to challenge conventional rules, thereby highlighting Lego's competitive edge. It also discusses the importance of employee expertise, problem-solving skills, and creative thinking in implementing innovative ideas. Finally, the essay examines the UAE government's proactive approach to incorporating innovation and technology across various sectors, including technology, healthcare, space science, education, transportation, and renewable energy, with a focus on building human capital and encouraging innovative organizations. The essay concludes by noting how UAE's government encourages innovation and how this is reflected in the rise of innovative leader organizations, such as Dubai Science Park.

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Lego thinking and idea is an innovation. The Lego process associated with innovation
and unconventional thinking, which is clearly highlighted in the video. This is highlighted in
the following summary. Kiddicraft is a company that brought in the idea of innovation and
conventional process with various alterations. However Kiddicraft Company took this idea
from the Lego Company. After this adoption, the innovation process was tailored fulfilling
their needs. The modifications include changes in colours, shapes and sizes. These changes
ensured that the requirements of the Lego Company would be fulfilled. The products of Lego
are considered to be one of the most innovative products. This is because of the differences in
dimension and thinking. The alterations and changes were made, in order to ensure the
fulfilment of the needs, along with incorporation of innovation. The Lego innovations
adopted by the Lego Company ensure competitive advantages, along with providing
recognition to the company. Moreover, these innovations make the products even more
suitable and attractive to the next generation. The innovation process is multi-dimensional. It
includes innovation based on the buying capability of the consumers, the modes of
entertainment, ease of availability of the essential resources along with, the method of
playing. The economic condition of the target market is also a determining factor. However,
it is true that the innovations were initially made to attract the children. The success that this
innovation brought in to the company, gave it the courage to venture into the fields such as
building prototype or in education. Though the innovation quotient of the company is high,
yet, the major drawback lies in the use of the plastic. The products using plastic are being
causing detrimental effects on the environment, thus reducing the sustainability.
In order to incorporate innovation, it is essential to break the conventional rules like
the Lego Company. However many companies are attempting to play safe and reduce various
risks and chances of failures while pursuing innovation. Various companies have been
incorporating innovation, without challenging the conventional rules. However most of them

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are afraid of trying out the unconventional ways of work. These fears in other companies give
Lego, a major competitive advantage. Innovation to be incorporated in a company is a major
challenge. The expertises among the employees need to match the innovation quotient to
implement innovative ideas successfully. However, most of the companies ensure that they
incorporate innovation, maintaining the conventional rules. This is mitigate the chances of
failures due to innovation.
While the companies incorporate innovation, it is important that the employees and
human resource are equipped with skills such as problem solving, creative thinking,
imagination and diligence, to work successfully in a complete the new process. The
government of UAE is proactive in incorporating Innovation and Technology in the country.
The Government officials have made it essential that all Emirates contribute to innovation,
helping in the growth of the country. Thus, with such attempts, the goal of UAE to establish
itself as one of the most innovative countries in the world would be fulfilled. With this goal
the government initiated the building human capital. This is because, the government
considers human resource as one of the most essential resources. Innovation in UAE is
multidimensional. The various sectors that are encompassed such as Technology, Health
Care, Space science, Education, transportation as well as renewable energy have been taking
place. With this simultaneous attempt, to reach the goal of the most innovative country in the
world will be accelerated. I feel many countries have been struggling in the major sectors
such as education, healthcare, and transportation. With the initiative taken by government,
these sectors of UAE will receive a boost. The encouragement of the government and the
competition on innovation is also a good attempt in order to encourage innovation in every
sector of life. This encouragement has led to the rise of various innovative leader
organizations. These companies are ready to break the conventional rules, since the UAE
government encourages them. One of the prominent examples of this encouragement is

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Dubai Science Park. More than 350 local and international companies are incubated in this
park, who are ready to offer innovative processes and solutions to the world.