LEGO: Rebuilding from the Bricks Up

By 2000, LEGO faced a crisis due to overexpansion and competition from digital games. Jorgen Vig Knudstorp identified these issues and sought to understand the company's financial losses. The digital revolution made traditional toys like LEGO seem outdated, leading to panic and misguided product changes like Jack Stone. Despite these challenges, LEGO's commitment to quality, rooted in its history, remained. Retailers expressed concerns about LEGO's performance, and Knudstorp's report highlighted the company's dire financial state, risking his career to present the truth.

What was one of the main issues LEGO faced in the early 2000s?

• Lack of innovation

• Limited market reach

• Overexpansion and identity crisis

• Poor quality products

How did LEGO initially respond to the rise of video games?

• By focusing on traditional toys

• By introducing the Jack Stone line

• By partnering with Nintendo

• By creating a new video game console

What was the original philosophy behind LEGO's toy production?

• To create the most affordable toys

• To dominate the global market

• To ensure high quality and 'play well'

• To focus on digital innovation

What was a major design change in the Jack Stone line that fans disliked?

• The introduction of electronic components

• The focus on educational themes

• The use of larger, less versatile figures

• The removal of all minifigures

What was the significance of the 'play well' mantra for LEGO?

• It was a new product line

• It guided the company's commitment to quality

• It was a marketing slogan

• It was a strategy to reduce costs

Who were the AFOLs and why were they significant?

• Adult Fans Of LEGO, who were alienated by new designs

• A group of children who loved LEGO

• A team of LEGO designers

• A marketing agency for LEGO

What was the main reason for the decline in LEGO's sales in Asia in 2002?

• Lack of marketing efforts

• Increased competition from local brands

• The introduction of unpopular product lines

• Economic downturn in the region

What was a key factor in LEGO's struggle to connect with its fan base during the early 2000s?

• The focus on digital toys

• The introduction of too many new parts

• The lack of advertising

• The high cost of LEGO sets

What did Jorgen Vig Knudstorp's report reveal about LEGO's financial state?

• The company was thriving

• The company was ready to expand further

• LEGO was close to bankruptcy

• LEGO had a stable financial outlook

What was the reaction of LEGO's top management to Knudstorp's report?

• They immediately implemented his suggestions

• They fully agreed with his findings

• They dismissed his predictions

• They were divided on his conclusions