LEGO: Innovating Inside the Brick
Episode Description
Abstract: LEGO has built a global empire and become a household name, thanks to the interlocking bricks that its founders developed half a century ago. But the company almost went belly up in the early 2000s due to a binge of innovation that took it too far away from what LEGO did best. In a new book, Wharton practice professor David Robertson details how thinking too far "outside the box" almost bankrupted LEGO -- and how the company found a winning formula by turning to innovation "inside the brick." 📂 Innovation
Brief Summary
David Robertson discusses LEGO's history, innovation strategies, and lessons learned from its successes and failures.
Key points
- The Origins of LEGO. LEGO began as a small wooden toy company in Denmark during a recession.
- The Interlocking Brick Revolution. The development of the interlocking brick in 1958 transformed LEGO's future.
- The Rise and Fall of LEGO. LEGO experienced a decline in the 1990s due to market changes and poor decisions.
- Lego's Innovation Binge. LEGO's attempt to innovate led to a series of failures and successes.
- A New Strategy for LEGO. LEGO refocused on core products and saw significant growth in recent years.
- The Untold Story of Lego. Despite industry challenges, Lego continues to thrive and tell a great story.
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Episode highlights
- The Origins of LEGOLEGO began as a small wooden toy company in Denmark during a recession.“A carpenter named Ole Kirk Christensen was having trouble getting wood.”0:47Jul 1, 2013
- The Interlocking Brick RevolutionThe development of the interlocking brick in 1958 transformed LEGO's future.“He makes a pretty big strategic decision to cut out 90% of his product inventory.”3:08Jul 1, 2013
- The Rise and Fall of LEGOLEGO experienced a decline in the 1990s due to market changes and poor decisions.“They suffered the first loss in company history in 1998.”6:14Jul 1, 2013
- Lego's Innovation BingeLEGO's attempt to innovate led to a series of failures and successes.“They lost control of the innovation that almost put them out of business.”8:15Jul 1, 2013
- A New Strategy for LEGOLEGO refocused on core products and saw significant growth in recent years.“Lego has been growing sales at 24% per year every year for the past five years.”16:46Jul 1, 2013
- The Untold Story of LegoDespite industry challenges, Lego continues to thrive and tell a great story.“It's a wonderful story and that's another reason why I wanted to tell it.”19:05Jul 1, 2013
- Lego's Impact on KidsLego teaches valuable skills that benefit children long-term, even after they grow up.“Investing in Lego is a great investment in your kids' ability to support you.”20:13Jul 1, 2013
Tension
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