the long tail patterns 73 Customers who build new LEGO designs and post them online become key partners generating content and value LEGO has to provide and manage the platform and logistics that allow packaging and delivery of custom- made LEGO sets LEGO Factory substan- tially expands the scope of the oΩ-the-shelf kit oΩering by giving LEGO fans the tools to build, showcase, and sell their own custom- designed kits LEGO Factory builds a Long Tail community around customers who are truly interested in niche content and want to go beyond oΩ-the- shelf retail kits Thousands of new, customer-designed kits perfectly complement LEGO’s standard sets of blocks. LEGO Factory connects customers who create customized designs with other cus- tomers, thus becoming a customer match- making platform and increasing sales LEGO has not yet fully adapted its resources and activities, which are optimized primarily for the mass market LEGO Factory’s existence depends heavily on the Web channel LEGO Factory leverages production and logistics costs already incurred by its traditional retail model LEGO Factory aims to generate small revenues from a large number of customer-designed items. This represents a valuable addition to traditional high-volume retail revenues VP CR CH CS KP KA KR R$ C$ LEGO Factory: Customer-Designed Kits bmgen_final.indd 73 6/15/10 5:35 PM