Did you know that LEGO almost went bankrupt before becoming a global powerhouse?
In the early 2000s, LEGO, the beloved Danish toy company known for its colorful bricks, was facing severe financial difficulties. Over-diversification into theme parks, video games, and apparel, combined with rising costs and declining sales, pushed LEGO to the brink of bankruptcy by 2004.
Enter Jørgen Vig Knudstorp, who was appointed CEO in 2004. Knudstorp implemented a strategic turnaround plan focused on:
1. Refocusing on Core Products: He streamlined the product line to emphasize the classic LEGO bricks, ensuring quality and creativity remained at the forefront.
2. Cost-Cutting Measures: By reducing overhead and improving operational efficiency, LEGO was able to stabilize its finances.
3. Innovative Collaborations: Partnering with popular franchises like Star Wars, Harry Potter, and Marvel, LEGO created themed sets that captivated both children and adults.
4. Embracing Digital Transformation: LEGO ventured into digital realms with successful video games and interactive sets, bridging the gap between physical and digital play.
These strategic moves not only saved LEGO from bankruptcy but also transformed it into one of the most valuable and recognizable toy brands worldwide. Today, LEGO continues to inspire creativity and imagination across generations, proving that resilience and strategic focus can turn the tide even in the face of significant challenges.
the LEGO Group
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2mo65 billion of those are probably mine, at least that's what my bank keeps telling me 😭😂