Lego is on the brink of bankruptcy due to too much innovation

    Did you understand that the well-known Lego organisation become nearly bankrupt because of an excessive amount of preference to innovate, it really is true. It seems that innovation is impossible, so long as you cannot be too passionate. The innovation you're making will generate enterprise income so what need to the innovation method be like? Let's discover the solution from the tale of the ups and downs of the Lego enterprise.

Lego is on the brink of bankruptcy due to too much innovation

    Let's start. The tale starts offevolved in 1932 with the aid of using kristiansen, a wood worker who failed in his enterprise, determined to apply his abilities to creating toys from wooden his enterprise went pretty properly Lego become born on the give up of 1940 kristiansen determined to put money into plastic injection molding generation to make his toys inexpensive lamentably his initiative couldn't make Lego expand as he desired till 1950 godfred ana okay kristiansen got here up with the concept to make toys that might be related to each other the usage of a robust interlocking system, born Lego as we comprehend it today.

    From the second set, inserts from the first can be combined to create new toys based on the innovative player's vision. It was called the Lego system and was patented in 1958. Then Lego released minifigures and figurines made to work with the entire Lego system. The presence of these minifigures made the experience of playing LEGO with a variety of space-themed toy sets, pirate castles and cowboys much more imaginative.Now kids can create their own storylines .

    Grew rapidly until 1993 as a Lego company. Lego has grown at a rate of 14% annually for 15 years. That is, the Lego company doubled in size every five years. This is the golden age of Lego. The story gets even more interesting from here, so read on.

    Hello, then until 1998 Lego started to move slowly and eventually stagnated. Lego appears to have reached the maximum lifecycle of its products.Lego management is also trying to boost growth by tripling production, but unfortunately sales are still sluggish. In 1998, Lego also reported a business loss for the first time, but the incident was offset by a decline in the value of Dennis Crown, exacerbated by the dollar. In addition, competing toy makers began shifting production to chains. As a result, Lego was unable to keep up with the competition on price.

    Under these circumstances, Lego management was forced to lay off 1,000 Fuad creations in order to keep the company alive. Now they are struggling to revive. It's time for Lego to innovate more aggressively, after which he recruited 30 young innovators from this design school in continental Europe. They challenged themselves to create a new product line Lego. From there, many new products like Lego Snap Primo Scale and Wars were born. Allah is also in the process of making a Lego action figure, so Lego makes a similar product called the Jackson.

    Set up in less than 10 minutes. There's also his Explore product for toddlers that requires no assembly at all. - Management Gadan at the time was Lego Garidor. It was an action figure toy featuring Garidor's electronics, and even had its own TV show to provide context for Toy's story. The marketing effort involved less than half of McDonald's franchise his network.

    This is the end of the story, take a look. Yes, Lego's despair and despair drove Lego to blindly innovate. Well, where do you think the results are? Have various innovations helped Lego to get out of its stagnation? Hi. It turns out that all the products I mentioned earlier have failed in the market. not. The number of different types of LEGO bricks has increased from 6000 to 12000. Increased sales.

    The various LEGO products I mentioned earlier couldn't be linked together because they didn't use the same locking system.Each product just added or doubled the play experience. While it sells toys at below-production prices for various new products rumored to be able to pull it out of stagnation, it's actually going to be a long downhill climb for the Lego business. I don't have enough know-how to handle Simpak. Legoland squeezed the business instead of making a profit. In 2005 Legoland was finally sold to Blackstone Investment Group, but of course not all Lego products have failed.

    There were three of his Lego products that exploded on the market at the time: Lego Star Wars, Lego Harry Potter and Bionicle. Unfortunately, when the movie craze ended, so did Lego sales.

    This Batman is a product that allows Lego to survive in the midst of a declining business, an innovation in an industry with a short product life cycle, and of course Lego must continue to innovate. , Only this time Lego must not be blind. Lego must be smart to determine the focus and limits of innovation. Lego's management should decide to return to its roots. Lego fanatics should decide to go back to why they love Lego. They are called builders, kids, and adults, and they enjoy making creative things out of LEGO bricks with system builds that connect to each other. other.

    Additionally, LEGO administrators determine which limits can or cannot be set. Designers are not free to create products that they think are good. There is a kind of pallet that guides the design of this pallet and ensures that each block is actually in a Lego system that can be linked together. Hello, this palette is based on what the customer is interested in Lego. Management uses this palette to ensure efficiency, as the limited number of stick types cannot be mass produced.Legends of Chima. Well, this is a story-driven product, and it also has the Lego Friends that every girl needs. There are real risks.

    In practice, however, the product was ultimately considered a success. This is a secret, even though it targets a different market segment.Lego Friends will make creative things out of building blocks that can be connected, even if Lego decides to develop computer and console games. It relies on the same winning formula that is joy, but the gameplay requires the player to either take a virtual break or take a break. Build a virtual batak in-game just like you were playing with Lego in the real world. Lego's finances are finally in the black.

    In 130 countries, everyone gets 62 Lego bricks when distributed evenly across the entire population of the planet. What we can learn from Lego's history is that innovation clearly cannot exist as long as it requires focus and clear boundaries. Innovation is just creativity, it doesn't mean there is no profit. Use this knowledge information in your message. i think you found the answer. I hope you found this article useful. Please comment on it. Thank you very much

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