Legos

Lego lost its way in 1998 and 2004 when they started to make devastating loss. Rather than just resorting to outsourcing and retrenchments, its CEO had an apt strategy.


He simplified the management structure, sold off the Lego theme parks for some $500 million and generally washed his hands as much as possible of some of the distracting Lego lifestyle fodder -- watches, clothing, dolls. Its legos star wars collection was pretty much a huge success !


This is the classic example underscoring the point that it is best to stick to the knitting in business. Never do the business that you do not understand even if it seems extremely enticing and lucrative. By giving in to your avaricious behavior will get you nowhere but square 1.

Much of the previous diversification was stopped and the company set about re- familiarizing itself with its core products.

Legos start to construct a core story around its products once again, that is to allow the kids to familiarize themselves with the adults through construction.

"There's a basic need in children to put their hands on and construct things and Lego works because it's a challenge that also appeals to your creativity," said Jan Christensen, a communications manager at Lego, in Billund. "That's appealing and has been for more than fifty years."


Much encomiums have been showered on kids over the past few years, as being one of the most creative human beings in the world. Having a tebula rasa allows to see things from a fresh new perspectives that no adults can ever imagine. They question every single assumptions we made and compelled us to revisit some of the postulations we have about various issues in lives.

Legos crystallise the creative juices in the bombastic mind of the kids. They just keep building and building without stopping. Each time they construct something, it is fresh and out of the box. Adults are definitely comfortable with Legos since it brings out the genius in their child rather than being abetted to the purchasing of stultifying toys that kids are often infatuated with, for example, Barbie dolls. No offence here!

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