Lego looks to build global brand with organizational shake-up
Children’s toy brand Lego is embracing change as the surest route to success through creation of a new umbrella organisation and attendant management shake-up as the Danish giant embraces globalization.
This strategy will reward management credited with turning around the toy maker’s fortunes, led by the elevation of chief executive Jorgen Vig Knudstorp to head up Lego Brand Group – responsible for overseeing 75% of the Kirk Kristiansen family’s Lego stake.
In this Knudstorp will be ably assisted by newly promoted chief operations officer Bali Padda, who will take the role of CEO – the first non-Dane to take on a managerial role in the company’s history.
In a statement Kirk Kristiansen said: “With our recent growth and globalization come new and exciting opportunities for the brand, and we establish the Lego Brand Group to look into these new opportunities.”
From near bankruptcy Lego has enjoyed explosive growth in recent years within established markets in Europe and the US, prompting the business to cast its net further afield to the likes of China and India to maintain momentum.
Lego is engaged in a two way tussle with Mattel to be crowned the world’s largest toy maker but recently stumbled when first half profits dropped to $505m against expectations.
Lego has worked hard to build its reputation in recent years, work which has seen it named as the UK’s most trusted brand.