How Lego Is Succeeding Where Others Fail

This huge and informative NY Times article on one of the toys closest to all Nerd Dads' hearts gets right at the root of what's made Lego, who makes expensive toys, succeed in the current global depression. In essence, they've sold out.

Personally I'm of mixed feelings about it. On the one hand, I understand licenses are big, big money and businesses -- especially one as legendary and as imagination-exploding as Lego -- should do what they have to to survive.

But on the other hand, I can't help but find all of the licensed products on the Lego shelf at the toy store something of a drag. It was kind of neat to think of the Lego designers coming up with their own nifty designs, which were usually epic beyond belief, and to build your own world out of the foundation those designers gave you. I guess kids today might still be doing that anyway...? It warms my heart to think of some kid out there making their own glorious hay out of any recent Star Wars atrocities.

Even as other toymakers struggle, this Danish maker of toy bricks is enjoying double-digit sales gains and swelling earnings. In recent years, Lego has increasingly focused on toys that many parents wouldn’t recognize from their own childhood. Hollywood themes are commanding more shelf space, a far cry from the idealistic, purely imagination-oriented play that drove Lego for years and was as much a religion as a business strategy in Billund.

Just as the toys are changing, so is the company. Jorgen Vig Knudstorp, 40, a father of four and a McKinsey & Company alumnus who took over as Lego’s chief executive in 2004, made it clear that results, not simply feeling good about making the best toys, would be essential if Lego was to succeed.

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1 Comment on “How Lego Is Succeeding Where Others Fail”

  1. #1 Paul Lee
    on Sep 9th, 2009 at 10:01 am

    In the late 90's, LEGO almost went bankrupt due to some disastrous product lines that the company put out (Gallidor, Znap...) For many years, the privately owned company was in deep trouble. The license lines of Lego, specifically Star Wars is what saved the company. As an Adult Fan of Lego myself, I am thankful for the turn around the company was able to achieve. If it weren't for the license lines, there might not be a Lego Company today. That being said, Lego still produces many themes that aren't licensed. They have Space Police, Power Miners, Pirates, Agents just to name a few. And even with licensed Lego themes, they are still Lego. Kids can still take them apart and make anything they can imagine out of the bricks. Nothing has really changed that much. It is not as though a Star Wars Lego set prevents you from making a race car if that's what you want.

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