User blog comment:Rosso22/What I think about LEGO./@comment-4052371-20130129174053/@comment-5111283-20130129183933

Yup, this testifies to that fact(Towards the end). And personally as long as TLG keeps making some good sets with good pieces I won't complain if their making money.

"In 2004 the LEGO group was in trouble. They were losing money and losing market share to other toys and entertainment products4. In order to address some fundamental issues in their business, they needed to cut costs. Leading up to this crisis, LEGO bricks had been adding new designs and colors without consideration for the cost to the business. LEGO went through a large reorganization and cut the production of unique elements in half, the variety of colors in half, and the number of suppliers by 80%. This, in addition to an increase in licensed sets and an expansion into video games, saved the LEGO Company.

In reorganizing the company, LEGO became more efficient. The data shows that they have been able to standardize costs and it is likely that they were able to hedge the price of plastic against future price fluctuations. In protecting their business, they have also been able to normalize prices for their customers. A stable price is good for everyone; it helps LEGO ensure that future production costs are budgeted for and it helps the consumer manage their budget. This allows LEGO to protect and grow its market share.

For all the positive aspects, these changes are not without their drawbacks. The LEGO community has been crying foul over the perceived decline in quality of the bricks5. While nowhere as bad as their competitor, any decline in quality reflects poorly on a company known for quality control. The LEGO group has been expanding its manufacturing base to places outside of Denmark, into Mexico, the Czech Republic, and China (although so far it seems only their “signature brand” non-set items are made in China). LEGO claims that this has not changed their dedication to the quality of standards by which they abide. However, it seems that the molds have changed to reduce plastic6. Whether or not this affects the durability of the bricks is yet to be seen."

Granted now the Chinese pieces make me mad...