Our visit to Lego headquarters at Billund was very exciting and memorable. It was very inspiring to learn that a family business with authentic meaning and soul could grow into such a large organization in three generations. We were given insights into the company’s corporate culture as well as marketing and product development strategies.
Lego focuses not only on product quality, but also play quality – it attaches a lot of importance to stimulating creativity and engaging children because of the intuitive nature of playing with bricks. It was interesting to note that though Lego is an extremely traditional organization, decisions are not necessarily made by the top management, but by those with specialization and expertise. This is a very different approach and can be easily implemented in Asian companies too.
Out of all the companies we visited, Lego possesses some of the best targeting strategies. Lego doesn’t look at demographics, but at the average income per capita while choosing target markets for growth. Lego also has an outstanding outside-in product development perspective, which allows them to not lose focus while being creative at the same time.
Our group was fortunate enough to see the huge, highly automated factory that produces around 2.4 million Lego pieces per hour. The advance manufacturing and packaging systems ensure safety as well as efficiency. We also had an opportunity to build a mini Lego vehicle and had a delicious lunch at the Lego canteen.
But the highlight of the day was the informative talk by the CEO Jørgen Vig Knudstorp.
Mr Knudstorp described how he revived the company when it was facing financial problems by focusing on consolidation rather than growth.
Our visit to Lego can be summarized in the following points:
- Stick to core values in times of difficulty.
- Don’t develop products in a vacuum – involve your customers.
- Balance product development and creativity.
– Shreya Jasmin Vora