How LEGO Nearly Died and the Outsider Who Saved It

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How LEGO Nearly Died and the Outsider Who Saved It

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In the winter of two thousand and three, accountants walked into a meeting room at the Lego factory in Billund, Denmark, and delivered a number that should have killed the company. Lego was burning roughly one million dollars every single day, drowning in unsold inventory from a decade of reckless expansion, and running out of cash on a clock measured in months. This is the story of how the world's most beloved toy company nearly died, and how a thirty-five-year-old outsider named Jorgen Vig Knudstorp talked the founding family into letting him do what nobody inside the building had the courage to do. The cost was measured in thousands of jobs, beloved product lines, and a brutal simplification of the part catalog from more than thirteen thousand unique elements down to about seven thousand. The result, a decade later, was the most profitable toy company on earth.

This episode is a study in focus, restraint, and the arithmetic of survival.

Chapters:
00:00 The Number in the Meeting Room
05:30 A Carpenter in Billund
13:00 The Golden Decades
20:30 The Diversification Frenzy
29:00 The Outside Consultant
35:00 The Cuts
42:30 The Part Count
50:00 The Adult Fans
55:30 The Movie and the Licensing Machine
61:00 Three Lessons from Billund

If you enjoy deep business case studies told without the usual bromides, check out Unusual Apocalypse, a podcast about strange, unexpected end-of-the-world scenarios and the odd ways civilizations come undone. Available wherever you listen to podcasts.

For a closer look at the inventions that reshaped how we live, try The Innovation Lab. Available wherever you listen to podcasts.

Building Empires is part of the HustleStudios network.

#Business #Entrepreneurship #LEGO #Strategy #Leadership

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