How Lego Clicked: The Super Brand That Reinvented Itself

managerialslime shared an article about how Lego executed “the greatest turnaround in corporate history.” The Guardian reports:
By 2003 Lego was in big trouble. Sales were down 30% year-on-year and it was $800m in debt. An internal report revealed it hadn’t added anything of value to its portfolio for a decade… In 2015, the still privately owned, family controlled Lego Group overtook Ferrari to become the world’s most powerful brand. It announced profits of £660m, making it the number one toy company in Europe and Asia, and number three in North America, where sales topped $1bn for the first time. From 2008 to 2010 its profits quadrupled, outstripping Apple’s. Indeed, it has been called the Apple of toys: a profit-generating, design-driven miracle built around premium, intuitive, covetable hardware that fans can’t get enough of. Last year Lego sold 75bn bricks. Lego people — “Minifigures” — the 4cm-tall yellow characters with dotty eyes, permanent grins, hooks for hands and pegs for legs — outnumber humans. The British Toy Retailers Association voted Lego the toy of the century.
It’s a good read. The article describes how CEO Vig Knudstorp curtailed the company’s over-expansion — at one point, Lego had “built its own video games company from scratch, the largest installation of Silicon Graphics supercomputers in northern Europe, despite having no experience in the field.” And he also encouraged the company to interact with its fans on the internet — for example, the crowdsourcing of Ninjago content — while the company enjoyed new popularity with Mindstorms kits for building programmable Lego robots.


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