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ManagementPricing & LoyaltyE-commerceIntermediate2014
Flipkart: Big Billion Day Sale
The challenge
By 2003, Lego was facing bankruptcy. They had diversified into theme parks, clothing, video games, and television — losing focus on their core product. Children were increasingly attracted to video games, and Lego's product line had become confusingly large with too many unique pieces.
The strategy
New CEO Jorgen Vig Knudstorp implemented radical focus — exit non-core businesses, reduce the number of unique Lego pieces from 13,000 to 7,000, and reconnect with what made Lego magical: open-ended creative construction.
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Try the full case free →Key lessons (preview)
- Focus is more valuable than diversification for most brands at most times.
- Reducing complexity (fewer unique pieces) can improve both quality and margins.
- Licensed partnerships can expand audience without diluting core brand identity.