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Author Topic: A lesson in supply and demand?  (Read 3137 times)
grahame
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« on: March 06, 2018, 11:19:48 »

From The BBC» (British Broadcasting Corporation - home page)

Quote
Too many Lego bricks is a problem many parents will sympathise with, but now the toy firm itself has admitted it has made too many.

The company said sales and profits had fallen for the first time in 13 years, blaming the weak performance on having to sell off excess stock cheaply.

A Lego spokeswoman said it had "too much" stock in warehouses and shops."There wasn't enough room to get 2017 toys into the stores, and the toy trade is driven by newness," she added.

The Danish toymaker said dealing with the stock issue, as well as a drop in sales in Europe and North America, had dragged down its performance last year.

Lego Group chief executive Niels Christiansen said there was "no quick fix" and it would take the firm "some time" to grow long-term. The weak performance comes after Lego cut 1,400 jobs worldwide in September, saying its business needed a "reset". Revenue for 2017 dropped by 8% to 35bn Danish kroner (£4.2bn; $5.8bn), compared to 37.9bn kroner in 2016.

Is there a lesson here for or to be learned from RoSCos ... where for years the demand for trains has outstripped supplies, with people willing to buy/hire at inflated prices?
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TaplowGreen
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« Reply #1 on: March 06, 2018, 13:41:35 »

From The BBC» (British Broadcasting Corporation - home page)

Quote
Too many Lego bricks is a problem many parents will sympathise with, but now the toy firm itself has admitted it has made too many.

The company said sales and profits had fallen for the first time in 13 years, blaming the weak performance on having to sell off excess stock cheaply.

A Lego spokeswoman said it had "too much" stock in warehouses and shops."There wasn't enough room to get 2017 toys into the stores, and the toy trade is driven by newness," she added.

The Danish toymaker said dealing with the stock issue, as well as a drop in sales in Europe and North America, had dragged down its performance last year.

Lego Group chief executive Niels Christiansen said there was "no quick fix" and it would take the firm "some time" to grow long-term. The weak performance comes after Lego cut 1,400 jobs worldwide in September, saying its business needed a "reset". Revenue for 2017 dropped by 8% to 35bn Danish kroner (£4.2bn; $5.8bn), compared to 37.9bn kroner in 2016.

Is there a lesson here for or to be learned from RoSCos ... where for years the demand for trains has outstripped supplies, with people willing to buy/hire at inflated prices?

.....only if you factor in elasticity.
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Phil
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« Reply #2 on: March 07, 2018, 08:21:42 »

I've only skim-read this, but am I to understand that there are now plans to build rolling stock out of Lego bricks?
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grahame
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« Reply #3 on: March 07, 2018, 08:50:04 »

I've only skim-read this, but am I to understand that there are now plans to build rolling stock out of Lego bricks?

It has been done before, Phil ... but not to the scale required

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