Are you Offering Customers too much Choice?
October 19, 2020
Which bricks do most to hold up your company’s fort?
In 2004, LEGO was on the brink of bankruptcy. They had expanded into clothes, theme parks and other products tangential to their iconic plastic bricks. Some were wild successes—but these couldn’t offset increasingly complex and expensive production costs.
After separating margin-drivers from “nice to haves,” LEGO went back to its roots: the classic LEGO brick.
They generated double-digit revenue growth for the next 10 years straight.
Are you taking the below steps to segment and simplify?
- Applying the 80/20 principle to analyze sales and profitability by segment.
- Identifying business segments driving the most value and realigning your organization around them.
- Creating a framework for rationalization to provide better services to your most profitable customers.
Find out more on how to identify the most solid bricks in your own fort, and which accessories you may need to rationalize.