I wish I had more time to study Lego as a business, but since it is a private business, my incentive to read though Lego’s years of annual reports are somewhat reduced. :) If I were to judge Lego by people’s interest in playing with them in the middle of the Chinook shopping mall last Saturday, it looks like people’s love affair with Lego haven’t finished at all. It was really cool to see this father and his two sons spent a lovely afternoon building this Lego project!
I enjoy Lego as a kid, but since Nov 2005, I have been thinking more like a legal minded business consultant. Well, what happened in Nov 2005? As some readers may remember, the Supreme Court of Canada ruled Lego’s “monopoly on the bricks is over” in Nov 2005 and Canadian MEGA Brands (maker of the MEGA BLOKS construction toys) can freely make their bricks to work with Lego’s.
What surprised me is a quick look/research (spending 5 minutes) seem to indicate the privately held Lego is still making good profit based on its lastest 2009 annual report.
Whereas the stock prices of Mega Brands, a high of $552 on Dec 30, 2005 down to $9.42 at the close of July 13, 2011, plus a quick glance of Mega Brands’ 2010 annual report, indicates the company hasn’t been doing that well for its investors.
Lego as a Lovemark
May be a brick isn’t a brick after all. :) And Lego is an undisputed Lovemark.
The following are some photos taken at Chinook. By the way, I think Lego is pretty cool and smart with keeping its mindstorms (its programable robots) “open” for people to play with and “hack”. If I were 12 years old again, I think I might have a lot of fun playing with it.