One reason that Lego nearly went bankrupt was because they lost sight of who their target audience was. They made unfounded assumptions, hastily innovating and creating without really researching beforehand to find out if that was what their audience actually wanted.
Why was Lego a failing business?
“It was a case of too many products and not enough profit.” He said another issue that needed addressing was the sheer amount of manufacturing costs which had skyrocket as Lego increased its colours from six to 50 plus along with the number of components. Lego remains one of the world’s most popular toys.
Are LEGOs successful?
For 2019, the company’s revenue registers a 6% growth at $5.8bn and 69% return on invested capital. 25% of profit goes to the LEGO Foundation which brings learning through play to children in need. 1.8 million children across 26 countries play with LEGOs which parents can buy in 570 stores around the world.
Who owns Lego now?
Why did Lego discontinue Bionicle?
Discontinuation. On November 24, 2009, Lego announced that production on new Bionicle sets would cease after a final wave was released in 2010. The decision was made due to recent low sales and a lack of new interest in the theme, possibly brought on by its decade-long backstory and lore.