Monday, July 29, 13

“selling less of more”What is it?

Monday, July 29, 13

“selling less of more”What is it?

Monday, July 29, 13

describe shift in media from sellingsmall number of “hit” items in large volumes

to large number of niche items in small quantities

Monday, July 29, 13

describe shift in media from sellingsmall number of “hit” items in large volumes

to large number of niche items in small quantities

Monday, July 29, 13

describe shift in media from sellingsmall number of “hit” items in large volumes

to large number of niche items in small quantities

Monday, July 29, 13

Monday, July 29, 13

no. of products

Pareto Distribution

Graphrevenue

Monday, July 29, 13

Pareto Distribution

Graphrevenue

no. of products

Monday, July 29, 13

democratization of tools of productionEconomic Triggersaccording to Anderson:

Monday, July 29, 13

democratization of tools of production

Economic Triggersaccording to Anderson:

Monday, July 29, 13

democratization of distributionEconomic Triggersaccording to Anderson:

Monday, July 29, 13

democratization of distribution

Economic Triggersaccording to Anderson:

Monday, July 29, 13

falling search costs to connect supplyEconomic Triggersaccording to Anderson:

Monday, July 29, 13

falling search costs to connect supply

Economic Triggersaccording to Anderson:

Monday, July 29, 13

kA vp cr cs

c$ R$

chkr

kpniche

content provider

Monday, July 29, 13

kp vp cr cs

c$ R$

ch

kA

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platformdevelopment andmaintenance;niche acquisition

platformdevelopment

Monday, July 29, 13

kp kA vp cr cs

c$ R$

chkrplatform

Monday, July 29, 13

kp kA cr cs

c$ R$

chkr

vpa wide

scope of“non-hit”

itemswith hit products

Monday, July 29, 13

kp kA vp cs

c$ R$

chkr

crusually rely on

internet

Monday, July 29, 13

kp kA vp cr cs

c$ R$

kr chusually rely on

internet

Monday, July 29, 13

kp kA vp cr

c$ R$

chkr

csfocus on

nichecustomers

with hit products

Monday, July 29, 13

kp kA vp cr cs

R$

chkr

c$platform development and maintenance

Monday, July 29, 13

kp kA vp cr cs

c$

chkr

R$advertising, product salesor subscriptions

Monday, July 29, 13

kp kA vp cr cs

c$

chkr

R$Monday, July 29, 13

kp kA vp cr cs

c$

chkr

R$advertising, product salesor subscriptions

niche content provider

platformdevelopment

platform

a wide scope of

“non-hit”items

with hit products

usually rely on

internet

usually rely on

internet

focus onniche

customerswith hit products

platform development and maintenance

Monday, July 29, 13

kp kA vp cr cs

c$

chkr

R$advertising, product salesor subscriptions

niche content provider

platformdevelopment

platform

a wide scope of

“non-hit”items

with hit products

usually rely on

internet

usually rely on

internet

focus onniche

customerswith hit products

platform development and maintenance c$ R$

kp

ch

cs

kr

vpkA cr

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

cs

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

csLego-Users

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

csLego-Users

custom design kitsLEGO Factory

substantially expands the scope of the off-the-shelf kit offering by giving LEGO fans

the tools to build, showcase, and sell their own custom-

designed kits

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

csLego-Users

LEGO Factorycustom design kitsLEGO Factory

substantially expands the scope of the off-the-shelf kit offering by giving LEGO fans

the tools to build, showcase, and sell their own custom-

designed kits

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

csLego-Users

LEGO Factorycustom design kitsLEGO Factory

substantially expands the scope of the off-the-shelf kit offering by giving LEGO fans

the tools to build, showcase, and sell their own custom-

designed kits Internet

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

csLego-Users

LEGO Factorycustom design kitsLEGO Factory

substantially expands the scope of the off-the-shelf kit offering by giving LEGO fans

the tools to build, showcase, and sell their own custom-

designed kits

LEGO Factory aims to generate small revenues from a large

number of customer-designed items. This represent a valuable

addition to traditional high-volume retail revenues

Internet

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

csLego-Users

LEGO Factorycustom design kitsLEGO Factory

substantially expands the scope of the off-the-shelf kit offering by giving LEGO fans

the tools to build, showcase, and sell their own custom-

designed kits

LEGO Factory aims to generate small revenues from a large

number of customer-designed items. This represent a valuable

addition to traditional high-volume retail revenues

Internet

Customers who build new LEGO designs and post

them online become key partners

generating content and value

Customers whobuild new LEGO designs

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

csLego-Users

LEGO Factorycustom design kitsLEGO Factory

substantially expands the scope of the off-the-shelf kit offering by giving LEGO fans

the tools to build, showcase, and sell their own custom-

designed kits

LEGO Factory aims to generate small revenues from a large

number of customer-designed items. This represent a valuable

addition to traditional high-volume retail revenues

Internet

LEGO has to provide and manage the

platform and logistics that allow packaging

and delivery of custom-made sets

Customers who build new LEGO designs and post

them online become key partners

generating content and value

Customers whobuild new LEGO designs

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

csLego-Users

LEGO Factory

Lego has not yet fully adapted its resources and activities, which

are optimized primarily for the mass market

custom design kitsLEGO Factory

substantially expands the scope of the off-the-shelf kit offering by giving LEGO fans

the tools to build, showcase, and sell their own custom-

designed kits

LEGO Factory aims to generate small revenues from a large

number of customer-designed items. This represent a valuable

addition to traditional high-volume retail revenues

Internet

LEGO has to provide and manage the

platform and logistics that allow packaging

and delivery of custom-made sets

Customers who build new LEGO designs and post

them online become key partners

generating content and value

Customers whobuild new LEGO designs

Monday, July 29, 13

kp kA vp cr

chkr

c$ R$

csLego-Users

LEGO Factory

Lego has not yet fully adapted its resources and activities, which

are optimized primarily for the mass market

Lego Factory leverages production and

logistics cost already incurred by its

traditional retail model

custom design kitsLEGO Factory

substantially expands the scope of the off-the-shelf kit offering by giving LEGO fans

the tools to build, showcase, and sell their own custom-

designed kits

LEGO Factory aims to generate small revenues from a large

number of customer-designed items. This represent a valuable

addition to traditional high-volume retail revenues

Internet

LEGO has to provide and manage the

platform and logistics that allow packaging

and delivery of custom-made sets

Customers who build new LEGO designs and post

them online become key partners

generating content and value

Customers whobuild new LEGO designs

Monday, July 29, 13

Than! youLeina BolinasBettina DaezJyle GoTed LeeAnna RegaladoGabby Yupangco

Monday, July 29, 13