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Digital mastery framework

Shiyuan Xu

Created on February 14, 2023

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Transcript

disruptive

business model led

business model readiness

technology led

proud to be analog

mastery of digital technology

Strength ：

  • 1. High brand valuation-- #2 position, with a brand value of $249 Billion
  • 2. Multiple partnerships (Whole Foods, Zappos.com, woot.com, Junglee.com, IMBD.com) and third party sellers
  • 3. Superior logistics and distribution systems
Weakness：
  • 1. Easily imitable business model
  • 2. Limited brick-and-mortar presence
Disruptive:mastery: high
  • automated warehouse
  • last-mile dilivery
  • one-click purchase
business model: high
  • prime/prime air membership

Strength:

  • 1. Brand positioning: provide high-quality products targeting at medium and high-income group
  • 2. Shopping experience: improved floor plan, better shopping carts, clean store environment, and well-lit and marked aisles
  • 3. Various forms of replenishment and inventory management techniques (demand forecasting, planning, vendor management, seasonality)
Weakness:
  • 1. Higher price compared to other firms
  • 2. Decline in brick-and-mortar sales, especially in sales of low-margin products
Business-model led:mastery: low
  • mostly in-store service
business model: high
  • partnership with famous designers
  • premium discount retail store

Strength:

  • 1. Many strategic partners (LEGO, Hasbro, Mattel, Moose and many more top brands)
  • 2. Multi-channel marketing program (National TV Advertising, Digital Database Marketing, social media, and retail catalogues)
  • 3. Member Community
Weakness:
  • 1. Poor inventory management
  • 2. Lack of technology innovation
  • 3. Lagged human resources
Proud to be analog:mastery: low
  • little technology innovation
business-model: low
  • brick-and-motor stores and e-commerce website

Strength:

  • 1. Global Presence: Lego sells its products in 130+ countries. The company has 570 branded stores worldwide.
  • 2. Innovation: Every year, Lego refreshes 60% of its product catalogue.
  • 3. E-commerce: Lego has an eCommerce platform. One in three toys bought online.
Weakness:
  • 1. High price
  • 2. Video games too less compared to Bandai Namco’s
Technology Led: mastery: high
  • digital (DIY) toys
  • Lego universe
business-model: low
  • no personalized shopping experience