To support its global market reach and maintain its competitive edge through efficient distribution, Lego undertook a significant infrastructure project in 1962. The company built an airport in Billund, Denmark, to facilitate the shipping of its products to world markets.

Lego's Investment in Infrastructure for Global Market Access

Lego, founded by Danish carpenter Ole Kirk Kristiansen in the 1930s, achieved global success by understanding a key customer desire: children gain more satisfaction from toys they can build themselves rather than pre-assembled ones. Kristiansen also prioritized high quality, famously resisting his son's attempts to lower production costs, which helped build the brand's strong reputation.

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A common strategy for many of the most successful global companies involves predicting customer desires ahead of time and building a brand identity known for its high quality. This approach helps companies to establish a strong market presence and foster customer loyalty.

Business Success through Anticipating Customer Needs and Building a Quality Brand

To cite the ebook, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/.

To cite a unit, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/ Unit [unit number] (url).

CORE Econ - The Economy 2.0: Microeconomics

Lego's Strategy of Quality and Innovative Toy Design

According to Apple's founder Steve Jobs, speed and proactive innovation are crucial for business success. He argued that firms cannot simply rely on asking customers what they want, because by the time a product is developed and launched based on that feedback, consumer desires will have already evolved to something new. This philosophy emphasizes the need to anticipate future wants rather than reacting to current ones. [18]

The Importance of Proactive Innovation (Steve Jobs' Philosophy)

IKEA, founded by Ingvar Kamprad, centered its business on improving daily life by offering quality products at affordable prices. A crucial part of this strategy involves innovation aimed at cost reduction, such as the development of flat-pack furniture which minimizes storage and transport expenses, thus supporting their appeal to a broad customer base.

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