Tyco
Strategic Concepts & Mechanics
Primary Evidence
"Things became really unpleasant for LEGO in 1984 when the American toy manufacturer Tyco realized that LEGO’s patent had expired and began producing bricks identical to LEGO’s, which were sold cheaply in buckets. LEGO tried to combat Tyco legally but failed. Copy products flooded the American market."
"However, Tyco’s attack did not have the devastating impact on sales that LEGO feared. Over the years, LEGO had built a strong image with its products and systematic marketing, not least a production technical superiority that ensured bricks of high quality. It was easy to notice the difference between the copy products and the LEGO bricks, which were produced with precision to a fraction of a millimeter, ensuring all bricks always fit and stuck together as they should. This helped protect sales. But competition from Tyco’s much lower prices forced the prices of LEGO bricks down."