...Korean MNEs and International Business (주)LG전자 김이현 문다인 문희재 1 LG 전자 기업 분석 기본 배경 - 대한민국에 본사를 둔 전자 제품을 생산하는 다국적 기업 - LG그룹의 대표 계열사 - 대한민국 시장 점유율 2위의 대기업 연혁 1958년 : 금성사(Goldstar)란 이름으로 설립 1960년대 : 대한민국 최초로 선풍기, 냉장고, 흑백 텔레비전, 에어컨 생산 1978년 : 수출액 1000억을 돌파 1984년 : 수출액 1조원 돌파 1995년 : 금성사에서 ‘LG전자’로 상호 변경 2004년 : 세계 최초로 지상파 DMB폰 개발 글로벌 기업으로서 LG - 1982년 : 미국 헌츠빌에 첫 번째 LG생산기지 설립 - 이후 중남부와 북부 아메리카, 유럽으로 글로벌 타겟 확장 - 현재 83개의 해외 자회사와 39개의 해외지점 2 LG 전자의 경쟁력 SWOT 분석 Strength - 국내 최대 규모의 ESS 통합 시험 설비 구축 - 기업용 보안 플랫폼 기술력 증명 Weakness - 스마트폰에 이어 TV역시 판매 부진 - 등돌린 투자자 SWOT 분석 Opportunity - 국내 시장을 넘어 해외 시장에서의 폴더형 스마트폰 수요 상승 - ‘안드로이드 페이’의 세력 확장 - 롯데 사태로 인한 반사 이익 Threat - 글로벌 환율 약세와 위완화 절하로 인한 수출 약세 - 단통법으로 인한 시장 침체 Michael Porter의 산업구조분석 기존 기업 간의 경쟁 및 잠재적 진입자의 위협 3 해외 진출 현황 & 글로벌 전략 해외 진출 현황 및 글로벌 전략 복잡한 유통구조 및 정부 규제 까다롭고 합리적인 국민 성향 해외 진출 현황 및 글로벌 전략 기업슬로건 전략 프리미엄 제품군 런칭 • 소비자가 원하는 기업상 반영 • 세탁기, 냉장고, 청소기, 디스플레이, 에어컨 • 호주인들의 인생관 반영 마케팅전략 • 지상파 방송 프로그램 ‘핫하우스’ 후원 • 호주의 인기 스포츠인 럭비와 축구팀 후원 해외 진출 현황 및 글로벌 전략 국내 가전 시장 포화상태 유명 기업들의 해외 시장 점령 해외 진출 현황 및 글로벌 전략 발로 뛰는 홍보 • 축제 기간의 신제품 전 시회와 로드쇼 개최 제품의 차별화 • 인도인의 니즈 파악 철저한 현지화 • 시장 진출 초기부터 제 품 개발과 판매 등 전 과 정에 현지인 채용 해외 진출 현황 및 글로벌 전략 한국 브랜드에 익숙하지 않음 현지 브랜드의 입지 거셈 해외 진출 현황 및 글로벌 전략 제품의 차별화 서비스의 차별화 • 인터넷 가전 및 첨단 제 품의 프리미엄시장 공략 + 기존 제품의 편리성 • 고객감동 서비스에 주력 마케팅의 차별화 • ‘로열티 포인트 프로그 ...
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...LG Electronics’ Strategic Plan Analysis Greg McMillan TM583 Strategic Management of Technology Professor Woody Wu August 18, 2011 Introduction LG Electronics Inc. founded in 1958 and headquartered in Seoul, South Korea. The company is a major producer of consumer electronics and has over 70 subsidiaries that manufacture TVs, video and audio products, appliances, refrigerators, wireless phone handsets, air-conditioners, and communications devices. LG Electronics has annual revenue of about 23.8 trillion and employs about 66,600 people. LG Electronics’ mission is to be among the top five electronics brands in the Africa and the Middle East. This vision is simple and clear: venture into new markets and win the consumers by giving what they want. Capturing new markets and providing a strategic direction for all LG Electronics activities in the Middle East and Africa is the main target (Times of Oman, 2006). On the other side, many promising markets like Algeria, Sudan, Angola and some others whose economic power is growing strong are being neglected. LG Electronics is focusing again to regain those markets. The company will use a new marketing strategy such as using power retailers instead of using traditional channels of marketing like using dealers. Traditional dealers are losing their power whereas the power retailers are gaining market share like Carrefour (Times of Oman, 2006). The company is looking to achieve a turnover of $6 billion, to increase...
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...Global Player in the Consumer Electronics Market: Knowledge@Wharton ( http://knowledge.wharton.upenn.edu/article.cfm?articleid=2667) LG’s Michael Ahn on Becoming a Global Player in the Consumer Electronics Market Published : January 06, 2011 in Knowledge@Wharton In 2000, executives at South Korea-based LG Electronics set the goal of becoming a top-three player globally by the close of the decade. One year early, in 2009, the company achieved its goal. Meanwhile, revenue has jumped from $5.6 billion in 2004 to more than $13 billion in 2010. Michael Ahn guided the branding effort for LG Electronics North America before stepping down as regional president and CEO last year to become a senior adviser at LG Electronics USA. In a recent conversation with Knowledge@Wharton, Ahn -- who was visiting the University of Pennsylvania to make a speech as part of the Wharton Leadership Lecture series -- named patience, consumer-targeted marketing and achieving synergy among the firm's different divisions as the factors catapulting LG Electronics from a relatively obscure maker of commodity goods to a premium global brand. An edited version of the conversation appears below. This is a single/personal use copy of Knowledge@Wharton. For multiple copies, custom reprints, e-prints, posters or plaques, please contact PARS International: reprints@parsintl.com P. (212) 221-9595 x407. Knowledge@Wharton I would love to start by talking about the consumer electronics industry. Competition in the...
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...Financial Information 4 LG Way 8 Code of Ethics 9 Current Situation Company Profile The name of the Company in Korean, “ELJI JEON JA CHUSIKHOESA” or “LG JEONJA CHUSIKHOESA” in its abbreviated designation and in English, “LG Electronics Inc.” LG Electronics Inc. is a Korea-based manufacturer specialized in the provision of electronic products. The Company mainly operates home entertainment division, which provides liquid crystal display (LCD) televisions (TVs), plasma display panel (PDP) TVs, LCD monitors, as well as audio, video and security equipment; mobile communications division, which provides mobile terminals, tablet personal computers (PCs) and network equipment; home appliance division, which provides refrigerators, washing machines, microwave ovens, healthcare equipment, cleaners, water treatment machines and others; air conditioning and energy solution division, which mainly provides industrial and household air conditionings, as well as other business division. It also involves in the light-emitting diode (LED) business, optics solutions business, vehicle components business and others. Industry | Sector | Employees | Audio & Video Equipment | Consumer Cyclical | 38154 | Contact Information | | Address LG Twin Tower 20, Yeouido-Dong, Yeongdeungpo-Gu Seoul, 150721 South Korea Phone +82-2-37771114 Fax +82-2-37773428 Web www.lg.com | | Mergers & Acquisitions There are no recent mergers or acquisitions for LG Electronics Inc. Financial...
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...HOMEPLUS: RIDING THE KOREAN RETAILING ROLLERCOASTER Submitted by: Cananea, Franco Rivas M. Mohammad Yasser, Mahter A. Ortega, Trisha C. Sescon, Michael Andre A. Wahab, Irene L. Submitted to: Mr. Francis Arroyo January 9, 2016 HOMEPLUS: RIDING THE KOREAN RETAILING ROLLER COASTER Problem Statement How can Homeplus address the current conflict against Korea’s small store owners while continuously developing the company’s economic growth and performance? Objectives To maintain Homeplus’ growth and competitive strength, taking into consideration the various changes in the Korean retail market (e.g. proposed regulatory bills). Brief Description of the Case Tesco, a multinational retail giant from Britain, engaged in a joint venture with Samsung Group during the late 1990s in order to enter Korea's competitive retail industry. The new brand was called Homeplus and its management implemented various policies aimed at localizing the business while also introducing business practices from Tesco's British headquarters. Homeplus was the first retailing company to introduce the supply chain management system and to develop two different products that would cater the preference of the various income level earners. The company invested in growth and diversification through large discount stores offering an “all in one spot” shopping experience, small-sized-super-supermarkets, private brands, and online shopping. The secrets to Tesco’s success are its undying drive to provide value to customers...
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...ASSIGNMENT OF MARKETING MANAGEMENT { LG MUSIC SYSTEM} 1. CONSUMER BEHAVIOUR PROFILE 2. IDENTIFY THE FACTORS AFFECTING CONSUMER BEHAVIOUR 3. EXPLAIN HOW BUYING TAKE PLACE SUBMITTED TO SUBMITTED BY: MS.GURDEEP SILKY ROLL NO. 52 SEC 319 MBA 1ST SEM INDEX 1) INTRODUCTION TO LG AND LG’S MUSIC SYSTEM 2) CONSUMER BEHAVIOUR PROFILE OF LG MUSIC SYSTEM 3) FACTORS AFFECTING CONSUMER BEHAVIOUR 4) EXPLAIN HOW BUYING TAKE PLACE 5) BIBLIOGRAPHY • INTRODUCTION TO LG The history of LG Electronics has always been surrounded by the company's desire to create a happier, better life. LG Electronics was established in 1958 and has since led the way into the advanced digital era by manufacturing many home appliances such as radios and TVs. LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company. LG Electronics has set a new mid-term and long-term vision, aiming to achieve a position as one of the top three electronics, information, and telecommunication firms...
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...The history of LG has always been based around the company's desire to create a happier, better life. LG Electronics was established in 1958 and has since led the way into the advanced digital era thanks to the technological expertise acquired by manufacturing many home appliances such as radios and TVs. LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company * 1958 Founded as GoldStar * 1960's Produces Korea's first radios, TVs, refrigerators, washing machines, and air conditioners * 1995 Renamed LG Electronics Acquires US-based Zenith * 1997 World's first CDMA digital mobile handsets supplied to Ameritech and GTE in U.S. Achieves UL certification in U.S. Develops world's first IC set for DTV * 1998 Develops world's first 60-inch plasma TV * 1999 Establishes LG Philips LCD, a joint venture with Philips * 2000 Launches world's first Internet refrigerator Exports synchronous IMT-2000 to Marconi Wireless of Italy Significant exports to Verizon Wireless in U.S. * 2001 GSM mobile handset Exports to Russia, Italy, and Indonesia Establishes market leadership in Australian CDMA market Launches world's first Internet washing machine, air conditioner, and microwave oven * 2002 Under LG Holding Company system, separates into LG Electronics and LG Corporation Full-scale export of GPRS color mobile phones...
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...Displays Overview of Korea’s Industries 2012 PROMISING INVESTMENT OPPORTUNITIES 02_ Overall Status of the Display Industry 04_ Characteristics of the Display Industry 13_ Investment by Foreign Companies Display Industry 02 03 1. Overall Status of the Display Industry 1. Overall Status of the Display Industry Flat-Panel Display (FPD) Market and Technologies ·The flat-panel display (FPD) market is growing based on the competitiveness of three major technologies: thin-film transistor-liquid crystal displays (TFT-LCD), plasma display panels (PDP) and organic light-emitting diodes (OLED). ·TFT-LCD has the largest market. The technology dominates the market, as it can be used in different types of applications, ranging from small devices including mobile phones to large appliances including televisions. ·PDP differs from LCD in that it does not need back light because it is self-luminous. Its use is limited to large applications such as televisions because the technology cannot be applied to small devices. It consumes more electricity than LCD. ·OLED is also self-luminous, and its use is limited to small devices such as mobile phones, as research is still underway to apply the technology to larger devices. OLED is lighter and consumes less electricity than LCD. It has great potential due to its simple structure and focus on materials, and it is praised as the foundation for flexible display, which is expected to lead the future. OLED is drawing attention...
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...AN INNOVATION STRATEGY FOR LG ELECTRONICS Thanks to the continuous technological innovation of handsets, the rise of mobile phones has been nothing short of phenomenal and the trend is expected to continue in the years to come (Frost & Sullivan, 2006). Their continued success is down to the fact that today’s handsets have become much more than simply mobile phones. A mobile phone can function as a camera, PDA and has many other features such as gaming functions and access to the Internet. Based on 3G, broadband is also paving the way for video-telephony and TV viewing. Characterised by continuous change and innovation, the mobile phone industry then sets an exciting stage for devising an innovation strategy. Our focus will be on mobile phone manufacturer LG. LG Electronics, Inc. is in fact a consumer electronics company with two other business units (Digital Display & Media and Digital Appliances), besides the Handset unit we will focus on in our report. On a global scale, LG’s handset division is 5th in terms of market share based on handset revenue, behind Nokia, Motorola, Samsung, and Sony Ericsson (see Appendix 1). Despite not being in the ‘Big Four’, LG’s market position is that of a strong challenger considering the many other ‘me too’ competitors that exist (e.g. NEC, Sanyo), but who fail to register in consumers’ minds. LG’s achievement can be seen to be mainly due to the success of their ‘Black’ series with popular models such as ‘Chocolate’ and ‘Shine’. Industry...
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...lectronics Case Study 3 LG Electronics: Global strategy in emerging markets Suggested case discussion questions Q1 Explain how LG’s experience within its domestic market (South Korea) influenced how it expanded into the BRIC emerging economies All MNCs are shaped, to some degree, by their domestic markets. In LG’s case, its emergence in Korea during the decades following the Second World War strongly affected its ability to expand into the BRIC economies. The domestic Korean market was highly competitive, which helped hone its ability to enact “come from behind” approaches in other locations as it was used to having to fight its way to the top. The Korean Government placed strong emphasis on R&D within LG’s home economy, which had a double-effect on it. First, the importance of high quality R&D enabling quick and effective localization of products and services was always central to its approach to expanding its presence within the emerging economies – this runs counter to much perceived wisdom that suggests emerging economies do not have infrastructure to support such a policy. Second, it built on its experience of working with governments, which it then displayed most effectively in Brazil. The Korean Government encouraged foreign direct investment which saw LG partner with Hitachi of Japan, again, allowing it to develop valuable partnership experience that would be brought to bear on joint ventures within emerging economies. Lastly, emerging within an economically...
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...CASE OF LG GROUP: DEVELOPING TOMORROWS GLOBAL LEADERS There is no company which is resistant to environmental changes, especially business environment. As the year comes by, new inventions or innovation will absolutely give impact on every type of business in the world. However, the causes of the impact, in other words, the root of the changes in the environment is not merely coming from company external territory; in most cases the impacts (either negative or positive) can come from external territory and internal territory of the company. This written analysis focuses on the LG Group’s Chairman Koo who once stated and defined his vision for the LG group to develop and improve significantly and to be a leading company in its local market area (Korea) and the wider market scope, international market and increase its revenue significantly within 7 years period. This is known as “LEAP 2005”. Even though is not an easy task to do, he is much certain that the group can do that. He considers the past performance of the group and the major internal changes within the company will enable it to achieve what its chairman wants. The main key success, as the management agrees, lies on the future leaders of the group. There are several questions that arise as the result of the discussion between the management in relation with this key point, namely where and how to find these future leaders, what capabilities of competencies these leaders should possess how to develop these key competencies...
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...LG electronics is a part of LG corportation. LG electronics which is called GoldStar at that time was founded by KOO IN-HWOI who was founder of LG corporation in 1st Oct 1958 at KOREA. At that time, radios were attracting interests as embodiments of civilization, bringing news of the world to their listeners. Mr. Koo thought, ‘we could make a radio by ourselves likes TOSHIBA, NATIONAL.’ So, he founded GoldStar. And finally, at 15th Nov 1959 they made the first Korean radio which is including more than 60% of domestic components. It was beginning of both LG electronics history and Korean electronic industry’s history. LG electronics started expanding their business to overseas by exporting radios to U.S at 29. Nov. 1962. LG electronics Singapore. Started business as the international purchasing office(IPO) in Singapore in October, 1989 for the first time in the Korean industry history. LG Electronics was able to purchase parts from the Singapore manufactures at lower cost and supplied to the plants of USA ,Europe, and Korea. They have 5 main business domains, which is Home Entertainment, Mobile Communications, Home Appliances, Air Conditioning and Business Solutions. LG Electronics Singapore Pte. Ltd.’s mode of entry is a wholly owned subsidiary. a wholly owned subsidiary is a means of entering new markets in which a firm fully owns its subsidiary in foreign countries. Because LG corporation which is holding company located in Korea owns all of the LG Electronics Singapore...
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...A PROJECT ON “BRAND LG” [pic] Presented By: Gurjit Singh – 3022 Heman Makwana – 3023 G. Kalaiarasan – 3025 Kalpana Patel – 3026 Acknowledgement We would like to thank Prof Sohan Mahanty for providing us with such an important and challenging opportunity of preparing a project report on Branding which has enabled us to learn a lot about the Branding strategies, LG’s product innovations and marketing tactics for the Indian market. It is a matter of great pleasure to express our sincere gratitude and thanksgiving to our Director – Dr. Bigyan Prakash Verma. Last but not the least, we extend our sincere thanks to all the people who helped us directly or indirectly in way of ideas and valuable thoughts for making this project, a grand reality. History of LG Brand: | LG's history dates back to 1947 when Lucky Chemical Industrial Company (LCIC), the first chemical company in South Korea, was | |established. In 1958, LCIC started Goldstar Company to manufacture consumer durables. Within a year of its inception, Goldstar manufactured| |South Koreas first radio, A 501. | |In the 1960s, it started exporting radios to the US and Hong Kong and manufactured Korea's first telephone, refrigerator and black & white | |television. With the consumer durables business picking-up, LCIC changed its name to Lucky Goldstar. ...
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...LG ELECTRONICS South Korean multinational corporation South Korea's second largest electronics maker and the world's third largest appliance maker Company has 75 subsidiaries worldwide Design a d manufacture te ev s o s, home appliances, and es g and a u actu e televisions, o e app a ces, a d telecommunications devices. LG Electronics owns Zenith Electronics and controls LG Displays, a joint venture with Philips Electronics By 2005, LG was a Top 100 global brand. In 2006, LG recorded a brand growth of 14% World s World’s largest plasma panel manufacturer In 2006, its net income was $226 million, on total revenues of $24.7 billion COMPANY – ITS SUBSIDIARIES • LG Display, is one of the largest manufacturer of liquid crystal displays p y • In 2006, the company's mobile phone division, LG Mobile, marketed the LG Chocolate TM phone, changing the company's i ' image of th maker of thi k 3G phones. f the k f thick h • Focuses on the design and marketing of phones such as the LG Shine and LG Prada (KE850 ( • The company was picked as 'The Design Team of the Year' by the Red Dot Design Award in 2006~2007 • Called the 'New Apple' or 'New Sony' in the industry and online communities • S Sponsor E li h Premier League club -Fulham FC. English P i L l b F lh LG ELECTRONICS - ORIGIN Established in 1958 as GoldStar, producing radios, TVs, g , g , refrigerators, washing machines, and air conditioners. Merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of...
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...Chapter 1 AN INTRODUCTION AND COMPANY BACKGROUND LOOK AT LG ELECTRONICS LTD Consumer electronics are irresistible, there is nothing quite fascinating than to see someone use an electronic gadget for the first time. There is absolutely no question that consumer technology sparks imagination like nothing else. The Consumer-Electronics industry is the world of entertainment, communication and office products. Currently, the global consumer electronics industry is dominated by the South Korean, Japanese and American companies. One of these South Korean companies is LG Electronics Inc. Originally being established in 1958, LG Group is the merger of two Korean companies, Lucky and GoldStar, hence the acronym LG. Its current slogan, “Life’s Good” is the bacronym. LG Electronics is the flagship of LG Group, one of the world’s largest electronics conglomerate. The company is the world’s second largest manufacturer of television sets and third largest producer of mobile phones. Being its headquarters in Seoul, South Korea, LG currently employees 95,000 people worldwide with 75 subsidiary companies globally. The main area for production division lies in mobile communication, digital appliances, digital display and digital media. In terms of distribution networks and worldwide sales, LG stands highest in the consumer electronics industry. Being a good control over the white goods market, LG has the highest market share in the home appliances. The company’s desire to create a happier, better...
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