By Atle Selberg
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Extra info for Atle Selberg Collected Papers, Volume 1
This open-ended play system was developed by the founder, Ole Kirk Christiansen, and was extremely successful for many years, but sales levelled out in the late 1980s. Ole Kirk’s grandson, Kjeld, took charge of the organization in the early 1990s and saw the changes that had taken place in customer value. In response, Lego bricks were packaged as themed self-assembly toys (themes including Star Wars and Mindstorms), and this repositioning led to a major increase in sales of Lego products. However, in the highly competitive and ﬁckle world of children’s toys, Lego’s fortunes and future are far from certain.
Then Canon, a Japanese multinational and an industry newcomer in the mid1970s, created entirely new market segments for copiers not served by Xerox in the USA: small organizations and individuals. In the late 1970s Canon designed a value delivery system offering a $1000 personal copier to target these segments. For almost a decade, Xerox largely ignored this new business idea that Canon had chosen to develop. In fact, in 1978, Fuji Xerox was willing to sell low-end copiers to Xerox to counter-attack Canon in the USA, but Xerox refused the offer and Canon prevailed.
It may be time for Lego to accept that their ‘Lego values’ belong to a different age: new values need new approaches and a new business idea. SUCCESS STORIES Organizations reviewed in the Sharpbenders research all encountered difﬁculties but managed to regain control over their situations. As we saw, there is much we can learn from these cases about what matters; which factors make the difference between success and failure. However, this also raises an important question: is it possible to see the potential for trouble in enough time so that it can be avoided altogether?
Atle Selberg Collected Papers, Volume 1 by Atle Selberg