Lego: How much does profit matter?
An interesting read from the Labor Day weekend in the U.S.:
This New York Times story digs into the changes undertaken in recent years at Lego. The Danish toy company, which a few years ago languished, has been lapping the field in its industry during this recession, but doing so has required it to deviate from its long-held traditions.
Some of these old habits — like letting deadlines for product development slip without consequences — deserved to die. Others, like the company’s traditional avoidance of guns or violence in its playsets, have been adapted to fit its new (and extremely profitable) strategy of building toys themed around Hollywood properties like Star Wars and Raiders of the Lost Ark. (There was a debate within the company about putting out any toy with “Wars” printed on the box.) Throughout its process of negotiating the 21st century, though, the company has remained steadfast in its view that profit isn’t everything.
It will be interesting to see how much the company retains that view if it continues down the path of high profits that it’s been on.
~
Related post:
~
Photo bymcamcamca, used under a CC-Share Alike license.
Category: Consumer goodsIf you liked this post, please consider subscribing to the RSS feed so you can receive future articles delivered to your feed reader.
4 Comments so far
Leave A Comment
Profit isn’t everything, just like breathing isn’t everything. Businesses need profit to survive, serve and innovate, just like humans need breathing to survive and thrive.
I don’t disagree with you, Wally — nor does the article, nor do the Lego executives.
A thought: some companies treat profit like it’s oxygen AND water AND food — i.e. as though it’s *all* there is.
What’s even worse is the companies who think “growth” (in quotes because definitions vary) is the goal.
[...] there! If you are new here, you might want to subscribe to the RSS feed for updates on this topic.Lego: How much does profit matter? from Hoover’s Business Insight Zone by Tim [...]