The US market noticed around 35 percent drop in market share as compared to the previous year, whereas Asian markets noticed a fall of around 28 percent (Annual Report, 2003).The year 2003 was very disappointing for the group. The net sales fell by around 26 percent from DKK 11.4 billion in 2002 to DKK 8.4 billion, whereas the play material sales declined by 29 percent to DKK 7.2 billion and thus resulting in a pre-tax loss on earnings of DKK 1.4 billion, which showed a drop of DKK 2 billion as compared with the previous year (Annual Report, 2003).The retardation shows the failure of the growth strategy resulting in a considerable loss of the market shares. Finally, by the end of the year 2003, the group decided to change its business strategy by creating new initiatives targeting effective and rapid development of the company.It was decided that from the year 2007 onwards, the activities by LEGO Group refers to the LEGO A/S, which is owned 75% by LEGO Holding A/S, in the ownership of Kjeld Kirk Kristiansen and his three children, and rest of the 25% part is owned by LEGO Invest A/S, in the ownership of the LEGO Foundation (Annual Report, 2007). Development of LEGO.
Annual Report. 2003, Annual Report 2003: LEGO Group. Billund: Corporate Communications.
Annual Report. 2007, Annual Report 2007: LEGO Group. Billund: Corporate Communications.
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