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The Hustle Daily Show
A history of failed Legos: from nearly bankrupt to untouchable
Oct 21, 2024
Lego’s journey from near bankruptcy to dominance is filled with fascinating twists. The 90s saw innovative missteps and product flops that nearly sank the brand. One infamous initiative, Galador, struggled to compete with the Bionicle series and highlighted critical failures. The shift from classic bricks to action figures brought new challenges. Yet, through strategic partnerships and a focus on beloved franchises, Lego reinvented itself, showcasing resilience and creative evolution in the toy industry.
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Quick takeaways
- Lego's initial struggles stemmed from misaligned product innovations that deviated from its core brand identity, risking bankruptcy.
- A strategic overhaul under CEO Jorgen Vig Knudstorp allowed Lego to refocus on its fundamental strengths and achieve remarkable success.
Deep dives
Lego's Path to Recovery
Lego faced significant challenges that nearly led to its bankruptcy due to several ill-conceived business decisions. Among the missteps were attempts to diversify product lines, such as electronic toys for toddlers and overly simplified construction kits targeted at non-fans of construction toys. These products failed to resonate with consumers, as evidenced by the lack of interest in Lego Explorer toys that lacked the brand recognition typically afforded to established children's brands. Ultimately, a strategic re-evaluation led by a new CEO, Jorgen Vig Knudstorp, allowed Lego to shed unprofitable products and return to its core values.
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