LG Electronics: Global Strategy in Emerging Markets

The Company In 2006, Mr. Nam Woo was appointed president of LG Electronics. Mr. Nam Woo had a vision which contributed to the future success of the company. Made use of local potential for sales, research, development and localization. LG targets emerging markets. Trendsetting through returns. Implications.

The Korean Electronics Industry What has this meaning become. What have they achieved. Growing by the decade and scaling new heights.

The History of LG Established in 1947 as Lak Hui Chemical Industrial Co. Founded by Mr. In-hwoi Koo as a cosmetic manufacturing company which also specialized in plastics. Made components for telecommunications. Interesting facts emerged through findings. Made decisions. Acted on the decisions. Expanded in oil refining and later into transportation/shipping.

Entered the plastics business. Became the industrial leaders in Korean electronics and appliances. First Korean company to build a lot of things like a vacuum tube radio, electric fan, b/w TV, washing machine and an automated telephone switching system. Started protruding into an array of industries such as heavy manufacturing by the mid- 1960’s.

Sets revenue records in electronics, refining and chemicals. Dedicates internationalization in the 80’s. Started a rebalancing and restructuring program as a way to organize current business holdings. Became the largest flat screen manufacturer as LG-Philips.

Key Strengths of The Korean Electronics Industry Display screens. Semiconductors/DRAMs. Telecommunications.

Display Screens The world top-tier mass-production technology for panels Win-win competition between the world’s 1st and 2nd ranked firms Leadership of the global market in terms of products and technology(ability to invest preemptively on a large scale) Accumulated development capability for next-generation displays Leadership of the front-end TV industry

Semiconductors/DRAMs Global leadership in the memory semiconductor sector The world’s best production cost competitiveness World-class semiconductor applications industries including Samsung Electronics, LG Electronics and Hyundai Motors The government’s solid support for the semiconductor industry Secured new technologies as 3G mobile communication, IPTV, DMB, and 4G

Telecommunications Korea became the world’s first nation to commercialize the WiBro service in 2006, and the world’s sixth to obtain the 3G global standard, and completed nationwide installation of the HSDPA network in 2007 WiBro service adopted by 159 wireless carriers in 76 countries(Asia and South America) 2008, Korean manufacturer succeeded in developing LTE chips(first time) 2009, Increasing demand for smart phones led to improve the processing capacity and transmission speed of communication services From 2011, 4G LTE network investment are performing to meet the market demand At least KRW 5 trillion for five years

Strategic Growth Taking advantage of existing facts/problems and turning them into something useful. Sponsorship. Reaching out for the people. Making the most of local resources. Brand image.