Featured Animated Lego Characters
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Lego was known for its traditional blocks and components that would allow children to build just about anything their imagination could create. The new strategy broadened the products, targeting new customer segments. Lego managers cre- ated products based on themes of popular movies, such as Star Wars and the Indiana Jones series. The company moved into video games, which featured animated Lego characters sometimes based on movies. The company created a product strategy for adults and engaged the communities who had already set up thousands of Web sites and blogs featuring Lego creations. It embraced the community who thought of Lego as a way to create art rather than simply as a building toy. And the company designed a line of Legos aimed at girls because the majority of its products had primarily targeted boys.
The culture of Lego changed to one that refused to accept nonperformance. The company ’ s past showed a tendency to focus on innovation and creativity, often at the expense of profi ts. But that changed. “Knudstorp . . . made it clear that results, not simply feeling good about making the best toys, would be essential if Lego was to succeed. . . . Its business may still be fun and games, but working here isn ’ t,” 20 describes the current culture at Lego .
Some of the most drastic changes came from within the Lego organization structure. After its massive losses in 2004, Lego switched its employee pay structure, offering incentives for appropriate product innovation and sales. Key performance indicators encourage product innovation that catalyzes sales while decreasing costs. Development time dropped by 50%, and some manufacturing and distribution functions were moved to less expensive locations, but the focus on quality remained. The creation of reusable parts alleviated some of the strain on Lego ’ s supply chain, which in turn helped its bottom line.
Lego also expanded into the virtual world, extending into video gaming and virtual‐interaction games on the Internet.
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