d.MBA 101- LEGO - Business Design Teardown
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Jan 17, 2024 The podcast discusses the history of LEGO, their pivot from wood to plastic, and their use of franchising and IP to turn things around. They also compare LEGO's revenue to companies like Nintendo and Fortnite, explore the ownership structure of a LEGO investment office, and highlight LEGO's impressive growth and smart retail strategy. The discussion includes topics such as licensing and manufacturing costs, as well as LEGO's strategic initiatives like focusing on sustainability and merging digital and physical experiences.
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From Wood to Plastic
- LEGO began as a wooden toy company in 1932 by Ole Kirk Christiansen after his carpentry business closed.
- They later introduced plastic bricks inspired by Kiddicraft's self-locking blocks in 1949.
The Tube Innovation
- Early LEGO bricks, like Kiddicraft's, didn't grip well and were fragile.
- Ole Kirk Christiansen added three internal tubes and studs, improving clutch and securing a patent in 1958.
Six Principles of Play
- Gottfried Kirk Christiansen, after a fateful encounter with a toy wholesaler, developed the "Six Principles of Play."
- These principles emphasize system, affordability, simplicity, durability, timelessness, and easy distribution.