Lego’s Strategic Expansion: From Plastic Bricks to Global Entertainment Powerhouse

Lego, the world’s most profitable toymaker, has maintained a remarkable growth trajectory by turning inexpensive ABS plastic into highly sought-after toys, primarily through its iconic bricks and Minifigures. Despite competing in a market dominated by giants like Mattel and Hasbro and facing challenges such as sustainability and digital disruption, Lego has evolved into a multifaceted entertainment powerhouse. The company has expanded beyond traditional toys to include games, TV shows, films, and theme parks, appealing to a broad audience that includes a significant number of adult fans. This diversification, alongside a focus on sustainability and community engagement through platforms like BrickLink, showcases Lego’s strategic approach to growth and innovation.

• Lego’s business model significantly marks up the cost of ABS plastic to manufacture its bricks and Minifigures.
• The company has expanded its product line to include games, TV shows, films, and apps, transforming from a simple toy manufacturer into an entertainment giant.
• Lego has created a thriving ecosystem around its products, with a considerable portion of its market now consisting of adult fans and resellers.
• The adult Lego fan community (AFOL) has significantly influenced Lego’s product development and marketing strategies.
• Lego has faced challenges with sustainability, given its reliance on petroleum-based ABS plastic, but is investing in solutions to make its products and operations more eco-friendly.
• BrickLink serves as a major platform for the resale and trading of Lego sets and pieces, fostering a global community of collectors and enthusiasts.
• Lego’s efforts to become more sustainable have encountered setbacks, such as the abandonment of a project aimed at producing fossil-free ABS plastic due to increased emissions from the necessary production changes.
• Despite challenges, Lego’s commitment to sustainability, digital integration, and community building positions it for continued success in the global market.

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