Lego is going global with their products as they capitalize on the new movie and 11% increase in profits. Their plan is to use their base in Connecticut to expand into London, Singapore and Shanghai. The expansion will allow them to increase sales and draw in top international managers to help foster future growth. They are trying to bring their products brick-by-brick to new places that have never heard of the company.
A decade ago the company was losing 26% of profits and now it is realizing tremendous growth (1). The owing family gave up the reins to new management and they have been innovating 60-70 new products a year expanding their sales capacity tremendously. They have seen year after year growth for the past ten years and now they are ready to explode onto the global market.
The CEO Jorgen Vig Knudstorp states that their success is focusing on their core strengths and reinvesting their profits back into their abilities and expansion efforts (2). The company decision-makers have the ability to strategize long-term and have been putting resources into their plan. Because they are a privately held company they are a little more nimble than those with public shareholders.
The Lego movie with an announced 2017 sequel is contributing to their growth. Lego has attracted core followers who have grown up with the bricks and still use the product as adults. More children are being introduced to their toys through the movie creating an expanding customer base. Warner Brother’s movie acts as another brand marketing campaign and the sequel will maintain the interest into the near future.