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The “Generic Strategies” used in this case, was a mix of Cost Leadership and Differentiation Strategy. From the Cost Leadership perspective, while it could be a viable way to save money within the production cost structure, it may lead to a reduction in quality – which would ultimately hurt the brand over the long term, by reducing production cost using facilities locations tailored based on the market structure, LEGO achieved competitive advantage, without reducing product quality. Over time the cost component went down, and the Value perceived by the customers increased therefore EVA became higher. Differentiation advantage was achieved by getting customers across the globe engaged into product innovation, using appointed brand ambassadors that would communicate and receive real time feedback from hard core customers. Customer involvement is part of LEGO success.

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