The Astonishing Turnaround of LEGO: A Strategic Thinking Case Study

Introduction

In 2004, LEGO was teetering on the edge of bankruptcy with $800 million in debt. Their plethora of products, including clothes, action figures, and even video games, were not doing as well as they’d hoped. Fast forward to today, LEGO is not just a global toy company; it’s a media giant with movies, video games, and even theme parks. How did this incredible turnaround happen?

The Turning Point: Back to Basics

LEGO decided to shift their focus back to what they did best: plastic bricks. They did more than just cut away the excess; they also involved their most loyal customers in the product development process. With this renewed focus on their core product, LEGO managed to do what seemed impossible — turn their business around in a massive way.

Why This Matters: The Importance of Strategic Thinking

The LEGO turnaround wasn’t just good luck; it was the result of calculated decisions and brilliant strategic thinking. LEGO’s boardroom must have been a hotbed of ideas and arguments, but in the end, they picked the path that led them to become a multi-billion-dollar business.

What Would You Have Advised?

Imagine stepping into LEGO’s boardroom back in 2004. With the company on the brink of bankruptcy, what advice would you have offered? This is more than just a hypothetical question; it’s an exercise in strategic thinking. Understanding the decisions that led to LEGO’s resurgence can offer invaluable insights into how to approach your own business challenges.

Conclusion

Strategic thinking is not a skill you’re born with; it’s something you develop through practice and experience. This LEGO case study is a perfect example of why the ability to think strategically is crucial in the world of business.

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