LEGO, the universally adored building block toy, is a name deeply etched in the hearts of people from various generations. Its reputation as a stalwart in the global marketplace is undeniable. However, there was a time when this Danish family-run toy manufacturer almost succumbed to bankruptcy.
Lost Brand Identity
LEGO, the universally adored building block toy, is a name deeply etched in the hearts of people from various generations. Its reputation as a stalwart in the global marketplace is undeniable. However, there was a time when this Danish family-run toy manufacturer almost succumbed to bankruptcy.
In the early 2000s, LEGO’s attempt to cater to the diverse interests of its audience almost led to its downfall. The company ventured into numerous avenues such as theme parks, video production, and a variety of merchandising lines, all driven by a misguided need to innovate. But amidst the flurry of these new endeavours, LEGO lost sight of its core identity.
Their biggest misstep was altering the iconic products that had been adored by audiences for over seven decades. Consequently, LEGO broke its ‘psychological contract’ with its customer base, causing a significant disconnect between the brand and its loyal fans. The company found itself grappling with an $800 million debt.
Stay true to your core values!
Back On Track
However, the story didn’t end there. LEGO’s response to this crisis truly exemplified the power of staying true to your values. Essentially, LEGO returned to its roots – the iconic brick. Instead of assuming the desires of their audience, the company invested heavily in understanding their needs and preferences. They conducted ethnographic studies and developed an infrastructure that fostered a vibrant LEGO community, encouraging children and adults alike to share their innovative creations and suggestions.
With its focus firmly on its key stakeholders, LEGO re-established its commitment to its core values of promoting creativity, problem-solving, and the joy of learning. LEGO championed the concept of play as a fundamental right, a tool for nurturing essential skills, resilience, and a lifelong love of learning.
Builders of tomorrow
The company also demonstrated its commitment to future generations and the planet they inhabit. They became advocates for environmental stewardship, modelling a commitment to the “builders of tomorrow”. Through the LEGO Foundation, they actively advocated for the rights of children.
Today, LEGO stands as a beacon of creativity, imagination, and endless possibilities, with a firm commitment to sustainability and the ‘right to play’. Its interlocking bricks continue to inspire people of all ages to build, explore, and create their own unique worlds. The LEGO logo is simple, timeless, and universally recognisable. Its values transcend cultural barriers, delivering joy, learning, and the power of play to people around the world.
The LEGO story serves as a poignant reminder of the power of staying true to your values. In a world that is constantly changing, maintaining a firm commitment to your core values, while adapting and growing, can ensure not only survival but also long-term success.
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