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Companies that quickly expand to meet sudden demand find themselves over capitalized when the demand inevitably drops, and often bankrupt soon afterwards. Lego
by qq66 10y ago
Companies that quickly expand to meet sudden demand find themselves over capitalized when the demand inevitably drops, and often bankrupt soon afterwards.
Lego has always been managed for the long term and I assume they will grow production capacity only to the extent that they believe the demand growth is structural and not cyclical.
- deleted 10y ago[deleted]
- eternauta3k 10y agoThey could raise prices if they didn't mind the negative PR.
- carsongross 10y agoBut why? The glory of privately held companies is that they can say "Enough. There are things more important to me than another dollar." And when I say "they" I literally mean a small group of humans, able to project non-monetary desire onto corporate behavior. The abstraction of public ownership does away with this, leaving only "more".
- toomuchtodo 10y agoThese owners, with perspective and wisdom, are few and far between.
- bitwize 10y agoAnd that's the difference between conservative but revolutionary, in it for the long haul private Nintendo and trend-chasing, Super Mario Run, "we have shareholders to appease, let's throw anything at the wall and see what sticks but in the meantime here are a few tentpole franchise remakes/rehashes" public Nintendo.
- JoshGlazebrook 10y agoBut the prices are already ridiculous for plastic blocks.
- bbctol 10y agoIIRC Lego are made with incredibly precise tolerances, in part because that really is important to getting such small bricks to lock together, and in part because the family that owns the company has a cultural fixation with it.