Putting The Snap Back In Lego

The toymaker is moving beyond those little plastic bricks

Two years ago, LEGO Systems Inc. had a problem. The U.S. subsidiary of the Danish company that makes the plastic toy building bricks still had near-monopoly dominance in U.S. construction toys. But its sales were flat. And a couple of feisty new competitors, including K'Nex Industries and Ritvik's Megablocks were coming on strong. Meanwhile, superstores such as Toys `R' Us and Wal-Mart Stores Inc. were demanding more variety and faster delivery.

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