Lego's Competitive Advantage
With colorful, plastic building blocks at its core, Lego continues to fulfill Ole Kirk Kristiansen’s mission to inspire creativity and innovation in children and adults. The company has come far since 1932, but, because its basic product allows for limitless imagination, there are still endless opportunities it can pursue. The ability to inspire infinite creativity is what sets Lego apart from any other toy retailer.
Lego’s competitive advantage is a combination of four factors: its brand equity, merchandise assortment, pricing, and visual merchandising. As a toymaker that has prominent brand equity, opening themed brand retail stores gives its consumers ...view middle of the document...
Again, similar to Lego, these toys combine education and play.
American Girl’s merchandise assortment is centered on its historical fiction dolls. Customers can then purchase all sorts of accessories for the dolls. In order to continue a consumer’s relationship with the doll, American Girl also offers books and made for television movies that feature different dolls.
"An American Girl: Saige Paints the Sky" Trailer
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Many of Lego’s products are focused on its construction toys. Its consumers can continue their relationship with its products through video games and short YouTube clips online. One advantage that Lego has over American Girl in the merchandise assortment aspect is that there are endless possibilities for construction toys. The product could be historically themed, futuristically themed, or have a current popular movie theme.
With a mission statement of “celebrating girls by embracing who they are today and looking forward to who they will become tomorrow,” American Girl remains relevant to its target market of tween girls, ages 8 to 13, and their mothers. Also, to remain relevant to its consumers, American Girl updates its product line by adding new characters that will reflect the U.S.’s diverse population.
Lego is similar in that its mission statement celebrates the creativity and innovation of children. By following this mission statement, Lego’s products have allowed them to remain relevant to its target market of children, ages 6 to 12. Lego also constantly updates its product line, usually featuring construction sets themed by the latest movies.
American Girl’s store layout is very similar to Lego’s, except for the fact that American Girl stores, like its Water Tower Location, has more square footage. Its square footage allows them to have more in-store services like a café or a doll hair salon, making for an immersive in-store experience. While Lego offers an immersive experience, it does not...