Many one-product companies run out of road. Small plastic bricks have supported Denmark’s Lego for more than 70 years. A clear focus can pay off. But, amid a debate over the health of public markets, its success also demonstrates the benefits of its distinctive corporate structure.
The toymaker’s sales growth of 2 per cent last year was dragged down by a weak performance in China. But it was respectable enough given a seven per cent decline in toy industry sales. Lego’s sales are not much less than the combined total of its quoted US rivals Mattel and Hasbro.
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