A few months back I read an article about Lego’s recovery, on Bain’s website. Bain’s explanation was simple: Lego turned around because it became a focused company. Unfortunately, the explanation is wrong.
Below is an article that offers a much better explanation of the turnaround. The insight that turned Lego around will awe you, as it did awe me!
Lego turned around because it made its toys much more detailed and challenging, thereby enabling kids to attain social currency among their peers!