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This supporting video is to accompany the case. The abstract of the case is as follows: This case describes the strategic transformation and remarkable recovery of Hornby; the famous producer of model railways and slot car racing tracks (Scalextric). The first part of the case analyses how in the 1980s the firm attempted to respond to competitive pressures originating in the Far East through a strategy of product diversification, and how that caused the company to be in trouble again in the mid 1990s. The main part of the case focuses on the years 2000-2005 when the company's new Chief Executive Officer (CEO) Frank Martin begins to rebuild the company. An important element of his strategy and management style is to start carefully building and nurturing relationships with a large variety of stakeholders, such as customer groups, retailers, employees, alliance partners, investors, etc. The case highlights a long-term perspective in strategy-making, describes the role of serendipity, and the appropriateness of different leadership styles.