The Danish toy company has remained an integral part of many childhoods since its establishment in 1932. From then on, LEGO has experienced periods of significant accomplishments and faced the brink of bankruptcy.
LEGO initially encountered substantial market competition in 1988 when the patent protection for its iconic LEGO brick expired. In response to this challenge, LEGO chose to diversify, leading to a crisis instead. From 1992 to 2004, LEGO suffered a consistent decline, eventually nearing the brink of bankruptcy.
Approaching a tipping point, LEGO restructured its entire business. The board of directors overhauled the technology infrastructure within the company. By centralizing an ERP platform for logistics, sales, IT, and manufacturing, LEGO was able to continuously optimize all of its business processes.
LEGO also made improvements to its online presence, began offering digital enhancements to products, and engaged with customers in the digital world. The company also connected its physical products to the virtual world by releasing children’s apps and movies.