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LEGO’s Open Innovation Approach

Case Study

7 min readJun 27, 2024

LEGO, a globally renowned toy manufacturer, faced significant challenges in the early 2000s as it struggled to remain relevant and innovative in a rapidly changing market. To revitalize the brand and enhance product innovation, LEGO adopted an open innovation approach, engaging fans and customers through platforms like LEGO Ideas. This strategy led to the development of successful product lines and fostered strong customer engagement. This case study explores LEGO’s journey in implementing open innovation, highlighting key milestones, strategies, and outcomes achieved. The significance of this case lies in its demonstration of how engaging with customers can drive innovation and business success.

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Background Information

Founded in 1932 by Ole Kirk Christiansen in Denmark, LEGO started as a small carpenter’s workshop and gradually evolved into a leading global toy manufacturer. The company is best known for its interlocking plastic bricks, which have become a staple in children’s playrooms worldwide. Despite its success, LEGO faced severe financial difficulties in the early 2000s due to competition from digital entertainment and declining interest in traditional toys.

To address these challenges, LEGO embarked on a transformation journey that included adopting open innovation principles. The…

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Naresh Sekar
Naresh Sekar

Written by Naresh Sekar

Loves Engineering Management at scale. Interested in learning via real-world case studies.

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