One possible reason was increasing competition in their main product area. This was disruptive at its nature. One such example is the Canadian company “Megabloks”. This company offers a wide range of building toys at a highly competitive price. Also, the increasing popularity of computer games reduced the demand for traditional toys. Another possible factor was the over diversification of product line as LEGO moved into more areas like theme parks ,apparel, clothing, television and even computer games. Such diversification was a result of, as the company claims, a loss of confidence in their core product – the Lego brick. The increased complexity of product portfolio confused not just the customers, but employees as well. It was mentioned before that LEGO GROUP had around 11,000 suppliers, which was twice the number that Boeing used to build its aircraft. Such inefficiency and inflexibility was soon recognized and attention was directed to the supply chain, which was 10 years out of date. Moreover, low quality customer service and product availability decreased the value of company’s franchise. Jørgen Vig Knudstorp, newly appointed CEO, stated: “From my perspective, the supply chain is a company’s circulation system. You have to fix it to keep the blood flowing.