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LEGO® Friends: Leveraging Competitive Advantage

Kellogg School of Management Cases

ISSN: 2474-6568

Publication date: 20 January 2017

Abstract

In December 2011 the Lego Group (TLG) announced the launch of Lego Friends, the company’s sixth attempt to market a product to girls. Lego Friends, which was supported by a $40 million global marketing campaign, was designed to introduce the fun of building with Lego bricks to girls, who represented less than 10 percent of Lego’s audience.

The company’s poorly executed brand extensions and move from free-form building sets to story-driven kits had nearly cost it its independence in 2004, so the launch of Lego Friends was strategically important. However, within hours of the product’s appearance it was heavily criticized for reinforcing gender stereotypes and damaging the valuable Lego brand.

Jørgen Vig Knudstorp, CEO since 2004, had saved TLG and ushered in an era of sales growth with a series of successful strategic initiatives. Would Lego Friends be another addition to TLG’s graveyard of failed products for girls, or would it prove popular and finally enable the company to double its sales and profits by reaching this segment?

After analyzing the case, students should be able to:

  • Understand the connection between a firm’s assets and its activities

  • Identify new resources and capabilities required for a change in strategic focus

  • Recognize the consequences of poorly matched assets and market opportunities

Keywords

Citation

Mazzeo, M. and Merkley, G. (2017), "LEGO® Friends: Leveraging Competitive Advantage", Kellogg School of Management Cases. https://doi.org/10.1108/case.kellogg.2016.000183

Publisher

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Kellogg School of Management

Copyright © 2012, The Kellogg School of Management at Northwestern University

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