[Yoon Eun Key's X Management(64)] LEGO's Multiplication Management: New C...

[Columnist Yoon Eun Key, Korea Lecturer News] Lego, which started as wooden toys in a small carpentry shop in Denmark in 1932, dominated the global toy market with plastic assembly toys. It was the emperor of the toy industry.

However, in the early 2000s, Lego faced its greatest crisis since its founding. Powerful competitors in the form of video games and smart devices had emerged. Children's interest shifted like an ebb tide from analog blocks to digital games. The company was immediately pushed to the brink of collapse.

To overcome this crisis, Lego focused on "additional management," adding features to existing products, but this only deepened its financial difficulties. The entire workforce felt despair, and rumors circulated that Lego was a dying industry. At this critical moment, young CEO Jørgen Vig Knudstorp stepped in as a relief pitcher and completely changed the perspective. He redefined Lego not as a simple toy, but as a "platform" capable of containing and connecting anything.

Lego transformed the concept of Lego from a toy solely for children into a tool for adults' 'creative' and 'artistic experiences.' It connected Lego fans worldwide, opening up a platform where they could create new works on their own. A flood of innovative products emerged. A bolder approach involved turning a source of threat into an opportunity. By collaborating with game companies to launch new character products, it generated multiplied results.

The revolution erupted with 'Smart Bricks.' These are intelligent blocks that integrate digital technology (sensors, motors, Bluetooth, and programming) into analog products. Lego has moved beyond simple toys to become a central player in the education market known as Edutech. Furthermore, it is expanding into a hobby for adults. A Lego excavator connects via a smart app and Bluetooth, allowing it to move with the precision of real heavy machinery. It moves back and forth on inclines and even operates its hydraulic system. Numerous Smart Bricks are currently being released. They combine the tactile feel of analog with the fun of digital technology. It is a revolution that transcends the boundaries of the toy industry.

Lego is currently engaging in groundbreaking, all-encompassing collaborations with global brands. Many companies, including game developers, have come to seek partnerships with Lego. Through these strong partnerships, Lego is expanding its reach infinitely.

Partnering with Disney, they brought cinematic imagination to life in blocks by showcasing the 'Star Wars', 'Marvel', and 'Mickey Mouse' series.

With Nintendo, the fun of the game was brought to reality by combining 'Super Mario' and 'The Legend of Zelda'. In particular, 'LEGO Fortnite', created through a collaboration with Epic Games, recorded 2.4 million concurrent users immediately after its launch, proving LEGO's presence even within the digital metaverse.

It also pursued bold collaborations in the fashion and lifestyle sectors. Through collaborations with Nike and adidas, it infused sneakers and clothing with the Lego aesthetic. With IKEA, it penetrated the living space by launching the 'BYGGLEK' series, which combines storage and play.

For car enthusiasts, they have introduced sophisticated Technic series in collaboration with Ferrari, Lamborghini, and McLaren, and starting in 2025, they have formed an official partnership with Formula 1 (F1) to recreate legendary vehicles on the circuit as LEGOs.

This all-encompassing collaboration strategy led to overwhelming results in 'Multiply Management.' Even amidst a downturn in the global toy market, Lego achieved sales of 83.5 billion DKK (approximately 16 trillion KRW) in 2025, growing 12% year-on-year. Operating profit also reached 22 billion DKK, setting a new all-time high. This is not merely the result of selling a large volume of products, but rather the outcome of the synergy unleashed by 'X Management,' which encompasses the entire spectrum from fashion brands like Crocs to cutting-edge IT companies.

What lesson does Lego's brilliant revival teach us? It is that to survive in a rapidly changing environment, we need the wisdom of 'multiplication' that creates new value, rather than the 'addition' of adhering to existing methods.

First, Lego has been reborn as a 'creativity solution' company that connects the imaginations of people around the world, going beyond being a simple toy manufacturer.

Second, instead of perceiving the game industry, which posed the greatest threat, as a competitor, they embraced it and turned it into a major opportunity.

Third, we broke industry boundaries and expanded the ecosystem by constantly collaborating with powerful partners.

Lego's rebirth is the best model of 'X Management' that all executives of this era should emulate. Facing the massive wave of change, Lego redefined its business and embraced its competitors, transforming a 'new crisis' into a 'new opportunity.'

“There are no boundaries to innovation. Collaborate with competitors.”

Columnist Profile

Columnist Yoon Eun Key graduated from the Department of Psychology at Korea University and holds a Master's degree in Business Administration from Yonsei University and a Ph.D. in Business Administration from Inha University. He served as the Director of the Central Civil Service Training Institute (vice-minister level), President of Seoul National University of Science and Technology, and Chairman of the Seoul Metropolitan Government Employee Immunity Deliberation Committee. Currently, he is active as the Chairman of the Korea Collaboration Development Forum, Chairman of the Republic of Korea Baekgang Forum, Chairman of Baeksohoe, Chairman of the Air Force Policy Development Advisory Committee, and Dean of the Dosan Aegiaeta Leadership Academy.

Broadcasting activities include KBS 1 Radio's 'Live Today', EBS TV's 'The World of Work', and MBN TV's 'Easy-to-Understand Economic Stories'. Major works include <X Management(2025)>, <Create Through Collaboration(2015)>, <Thinking About the National Dignity of the Republic of Korea(2010)>, <Charm Is Competitiveness(2009)>, <Time Tech: The Art of Time Creation(1992)>, and <Special Lectures on Informatics(1987)>.

Awards include 'Person Who Brought Glory to the Air Force (2015)', 'Proud Air Force Person of the Republic of Korea Air Force Veterans Association (2015)', 'Grand Prize in the CHO Category at the 9th Korea HRD Awards (2011)', 'Order of Merit for Public Service (2009)', and 'Industrial Education Award for Outstanding Lecturer (1997)'.

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