Lego Business Model Canvas: Complete BMC Analysis
The Lego Business Model Canvas demonstrates how Lego became the world's most valuable toy company after near-bankruptcy in 2003. This BMC framework analysis covers Lego's nine building blocks: Key Partners, Key Activities, Key Resources, Value Propositions, Customer Relationships, Channels, Customer Segments, Cost Structure, and Revenue Streams.
Value Propositions: Play Well
Lego's Value Propositions include creative building, educational value, licensed themes (Star Wars, Harry Potter), adult sets (Icons, Technic), and quality durability. This brand extension strategy resembles the Disney Business Model Canvas franchise approach.
Revenue Streams: Beyond Bricks
Lego's Revenue Streams include set sales, licensed themes, Legoland parks, Lego movies, video games, and education products. This diversification mirrors the entertainment expansion in the Disney Business Model Canvas and Nintendo Business Model Canvas.
Customer Segments in the BMC
Lego's Customer Segments include children (core), AFOLs (Adult Fans of Lego), parents, educators, and collectors. This multi-generational appeal parallels the family audiences in the Disney Business Model Canvas and Nintendo Business Model Canvas.
Key Resources: Brick System and IP
The Key Resources block includes the brick system (compatible since 1958), licensed IP relationships, brand equity, and manufacturing precision. This IP strategy resembles the franchise management in the Disney Business Model Canvas.
Key Partners and Key Activities
Lego's Key Partners include license holders (Disney, Warner Bros), retailers, Merlin Entertainment (Legoland), and game developers. Key Activities encompass product design, manufacturing, licensing negotiations, and retail operations. Compare IP partnerships to the Disney Business Model Canvas.
Channels and Customer Relationships
Lego's Channels include Lego.com, Lego Stores, retailers (Amazon, Walmart), and Legoland parks. Customer Relationships leverage VIP loyalty program, Lego Ideas (fan submissions), and Lego Life app. This direct retail echoes the Apple Business Model Canvas store strategy.
Cost Structure Analysis
Lego's Cost Structure includes manufacturing, licensing fees, marketing, retail operations, and R&D. The high-precision manufacturing parallels quality investments in the Apple Business Model Canvas.
Comparing Toys & Entertainment Business Model Canvases
Study related BMC examples: Disney BMC for entertainment franchises, Nintendo BMC for gaming, Apple BMC for premium retail, and Netflix BMC for content licensing.