Investment on CURRENT IDEAS

 

Growing in value like vintage cars, LEGOs are a good investment

Just like cars, art or wine, LEGOs become more valuable over the years. Maybe not every set but some grow by as much as 700%.

Here’s one example: LEGO Grand Carrousel’s retail price in 2009 was 249 EUR and today, it is sold at EUR2000. That’s no small potatoes!

Last year in December, LEGO took a significant step to deepen its relationship with their adult fans and acquired BrickLink, the world’s largest online community of adult fans. The digital platform boasts 1.1 million members and features a marketplace, software and a Forum where fans can celebrate and share their creativity.

Yet despite LEGO’s remarkable turnaround, constant evaluation of operating and business model efficiencies is required.  LEGO recently announced that it had failed to foresee a jump in demand in Europe and, as a result, may not be able to meet all orders around Christmas time.  

Until existing factories are expanded and new factories are built, the company must focus on improving its customer demand forecasting capabilities.  Under the current operating model, the company’s sales team meets monthly to adjust order estimates for the coming month based on sales in the prior month – a system that could require analytical improvement.

  However, as proven by its commitment to adjust operating tactics to meet business model goals, LEGO will likely address this flaw so that “everything remains awesome” for the company in 2016 and beyond.