In the early 2000s, LEGO faced a critical turning point. The brand had overextended itself into theme parks, clothing, and video games, drifting from its foundational brick sets and risking its core identity. Amid this identity crisis, LEGO teetered on the edge of bankruptcy.
The appointment of Jørgen Vig Knudstorp as CEO in 2004 marked the beginning of a strategic revolution. Knudstorp's vision led LEGO back to its essence—the iconic brick—streamlining operations by divesting non-core ventures and simplifying the brick portfolio. Yet, the pivotal shift came through embracing storytelling, weaving rich narratives into LEGO sets with themes like "Ninjago" and partnerships including "Star Wars" and "Harry Potter."
By 2015, this strategic refocus not only pulled LEGO back from the brink but also catapulted the brand to the pinnacle of global recognition, outshining even Ferrari as the world's most powerful brand.
LEGO's journey underscores the transformative power of strategic focus in business turnarounds. It serves as a compelling reminder that, even in the face of potential downfall, revisiting and realigning with one's core values and strengths can pave the way for unprecedented success. This narrative is a testament to the strategic acumen required to steer a brand back to prosperity, highlighting that the essence of a turnaround lies not just in embracing change but in skillfully navigating back to the heart of what made a brand beloved in the first place.
What an amazing chapter in Brand Turnaround Strategy.