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How Lego Turnaround with Sun Tzu One Strategy

 

The One Sun Tzu Strategy Lego Employed Most:

“Know yourself and adapt to the terrain”

(Sun Tzu: “If you know the enemy and know yourself, you need not fear the result of a hundred battles.”)

Let’s break this down into the Top 3 Sun Tzu Strategies Lego applied during its turnaround:

1. Know Yourself — Rediscover Your Core

🏯 “He who knows himself will win half the battle.”

What Lego did:

  • In the 1990s, Lego expanded into theme parks, clothing, video games, and movie licensing — but lost sight of its core identity.

  • After losing money and nearly going bankrupt by 2003, the new CEO Jørgen Vig Knudstorp cut distractions and returned to Lego’s core DNA:

    • Simple bricks

    • Creative building

    • Child-led imagination

Sun Tzu Principle: “Victory begins with alignment.”
You cannot win if your army doesn’t know its own strengths.

2. Adapt to Terrain — Partner Instead of Compete

🛣 “The good general adapts to the terrain.”

What Lego did:

  • Lego stopped fighting the entertainment giants and instead partnered with them (e.g. Star Wars, Harry Potter, Marvel).

  • The strategy was not to resist digital trends, but merge physical play with digital storytelling.

Sun Tzu Principle:
Instead of attacking a stronghold, ally with it and use their strength to your advantage.

3. Win Without Fighting — Let the Fans Build the Army

🧠 “The skillful leader subdues the enemy without fighting.”

What Lego did:

  • Leveraged user-generated content through platforms like LEGO Ideas.

  • Crowdsourced ideas from fans for new sets, creating instant loyalty and demand.

Sun Tzu Principle:
The best generals don’t impose. They mobilize existing energy and convert it into victory.


Summary Table

Sun Tzu StrategyLego’s ActionOutcome
Know yourselfCut distractions, focused on core bricksRestored clarity & brand identity
Adapt to terrainPartnered with movies and went digitalEntered new markets with synergy
Win without fightingCo-created with fans, built loyaltyCreated global community & trust


Why This Made Lego Rich and Resilient

  • From near-bankruptcy in 2003 to being the world’s #1 toy company.

  • No price war, no brute-force marketing.

  • Just strategy, alignment, and energy flow — exactly how Sun Tzu would lead.

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