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LG Mobile Essay

Founded

January 5, 1947

Headquarters Address
LG Twin Towers, 20
Yoido-dong, Youngdungpogu, Seoul, South
Korea
Our Businesses
Electronics, Chemicals,
Telecommunications and Service

(Number of Companies: 53)

LG Electronics
LG Display
LG Innotek
Hiplaza
Hi Logistics
System Air-Con Engineering
Siltron
Lusem

LG Chem
SEETEC
Coca·Cola Beverage
Company
LG Hausys
LG TOSTEM BM
HAUSYS ENG
LG Life Sciences
LG MMA

LG TeleCom
CS Leader
A•IN
LG Dacom
LG Powercom
DACOM Crossing
CS ONE Partner
LG CNS
LG N-Sys

1947

1953

1958

1967

1970

1974

1995

•Chairman
In Hwoi
Koo
founds LG
by
establishin
g Lak Hui
Chemical
Industrial
Corp.
(now LG
Chem)

•Lak Hui
Industry
establishe
d (now LG
Internatio
nal Corp.)

•Goldstar
Co.
establishe
d (now LG Electronics)

•Honam Oil
Refinery
Co.
establishe
d (now GS
Caltex of
GS Group)

•Cha Kyung
Koo takes
office as
Chairman

•Lak Hui
changes
its name
to Lucky
Co., Ltd

•Bon Moo
Koo takes
office as
Chairman
• New
Corporate
Identity
(CI)
establishe
d (Lucky
Goldstar
LG)

Goldstar produced first electronics in Korea.

1959
1960
1961
1965
1966
1968
1969
1973
1974
1979
1981
1982
1983
1984
1985

•First radio
•First electronic fan
•First telephone
•First refrigerator
•First black and white TV
•First air room conditioner

•First elevator, escalator, washing machine
•First cassette recorder
•First PMC single station equipment
•First videotape recorder
•first electronic VTR

•First color video camera
•First compact disc player in Korea
•First multiplex television with sound and color in Korea
•First laser machines in Korea, single unit video 8 mm VTR in Korea

1958-1995
1962

1975

1976

• Goldstar introduces private
loans for the first time in
Korea

• Goldstar establishes the
Central Research and
Development Institute

• Goldstar Precision Industry
(currently LG Innotek Co.,
Ltd.) established

1977

1978

1989

• Goldstar develops color
television

• Goldstar achieves exports
to the amount of 100
million USD

• Goldstar Industrial Systems
develops the fourth direct
drive ultra precision robot
in the world

1995
• LG Electronics Inc. acquires
Zenith, the largest
electronics company in the
United States

1995-Today
1995

•Chairman Bon Moo Koo created and enforced “Jeong-Do” Management* and “No. 1 LG” as the company’s core management goals.

1996

•LG Electronics Inc. establishes the LG-IBM PC company

1999

•LG Electronics Inc. develops the thinnest plasma display panel in the world

2001

•LG Electronics becomes the world’s first to develop organic EL for IMT-2000

2004

•LG Electronics develops the world’s first land-based digital multimedia broadcasting phone
•LG Electronics unveils 3G mobile phones for Hutchison

2005

•For eight years in a row, LG Electronics is number one in the world for sales of optical storage devices
•LG Electronics opens the LG Digital Reading Room in the National Library of Russia
•LG Electronics develops the world’s fastest 3D game phone

2006

•LG Electronics wins the 2006 Hong Kong Design Award for its Chocolate phone
•LG Electronics unveils the world’s thinnest ceiling-bound system air conditioner

•LG Electronics unveils the world’s slimmest (33-cm) flat-panel TV

2007

•LG Electronics is ranked first in the global CDMA market for two consecutive years

Revenues: $12.1 billion (FY 2008) that increased
10.3% compared with FY 2007 Collaboration with Microsoft Corporation, Android software under Google Inc., Wal-Mart,
EBay, Toyota
Threat
Case of LG 830 Spyder cell phone

“Jeong-Do” Management and LG’s
management principles
Increase the value for the shareholders and
investors
Improve reliability, flexibility and
responsibility
Increase the speed of responding to the
consumers’ feedbacks
Human recourses (Attract &Foster)

Music

business
mobility

Nokia
software

communication

game

Global Market

Local Market
But in the United States, Nokia’s market share has been steadily declined. Nokia has to develop more CDMA
mobile phones. Because the U.S.
wireless operators have a strong control
on the market, while the wireless
technology in the United States has also
been less advanced than Europe.

Motorola was founded in 1928.
It is the leader in the world’s chip manufacturing and electronic the
communications.
direct
US

Veriz
on

sales

Gove
rnme
nt
WalMart

distribut
ors

products
widely sold
through

Retailers
&dealers

licensees
Main customers of Motorola

Because of lacking of compelling new phones, the market share of Motorola’s mobile phones continue to depress.
Samsung replaced the location of Motorola becoming the secondlargest mobile phone marker. Now Motorola can only rank at third.

Samsung slips into No.1 mobile phone slot in US Leaves Motorola sadly Second

Just as LG, Samsung Group is also a South Korean company which offering various industries including electronics and mobile phones.

In 1973,Martin Cooper invented the first mobile phone in the world. The 1G phone looks boxy and can
only be served as movable but hardly
portable. Many people call this cell
phone as “bricks and mortar” or
“KINGBOX”.
Future mobile phones will be emphasis on security and data communication. On the one hand it will strengthen the protection of personal privacy, on the other hand the data services will enhanced by more researches and development.

A large-scale of 3G networks is sweeping the whole global
mobile phone market.
At the same time, the global market of mobile phones is facing its biggest threat. Some common tools of International phony such as Skype, Icq and MSN are more and more convenient and popular.

The future of Internet telephony will
become a mainstream form of
network communication which is
under the trend of scientific and
technological progress and perfection
instead of mobile phones.

General Outline

Troubles

Advantages

Milestones

1997:
1962:
1958:
Goldstar
Established
(LGE)

LGE
expands
business to
the U.S.
with radio’s.

Supplied
United
state’s
Ameri-tech
with
mobiles
phones.



115 companies: 84 subsidiaries, 34
liaison offices
(250 companies total)
Workforce: 84,000
36 R&D and Design Centers: 30 R&D, 6
design
Workforce: 17,000
63% of workforce employed overseas.
(101,000 of 160,000 total)

Global Subsidiaries/Companies:

Europe: 22
China: 16
Middle East & Africa: 11
Asia: 10
CIS: 7
South America & Central America: 10
United States: 7 (Currently number 2 in U.S. market behind Motorola) Japan: 1

Global Sales

KRW in

BS

Trillions
4.6

50
45

5

40
35
30
25

20
15
10
5

6

5

10

10

10
10

11
10

13

12

11

Home Ent.
AC

16
Home App.
4.5
8.6

15.8

D.Media
D.Display
D.App.
Mobile

0
2005

2006

2007

2008

2008 Q2 % Market Share
Others, 16.6
SonyEricsson,
8.2

Nokia

Nokia, 41

Motorola

LG, 9.3
Samsung, 15.4
Motorola, 9.5

Samsung
LG
SonyEricsson

Others

Fluctuations in KRW: (Competitive exports)
2005: $1(USD)= 1,103 won
2006: $1(USD)= 955 won
2007: $1(USD)= 929 won
2008: $1(USD)= 1,103 won
2009: $1(USD)= 1,183 won

NAFTA 1994/WTO 1995

Late Start (counter: R&D, Design, Localization)

High-End/Quality (counter: LG Chocolate
consignment, PBL)

PRADA – Luxurious PRADA phone

Microsoft – Windows Mobile 6.0/Smartphones

Mark Levinson (Audio Systems) – Music Phones
(Chocolate)

Google – Pre-installments in phones.

Schneider – Mobile phone camera lenses.


LGE sports sponsorships/partnerships
Formula 1
Multi-year partnership 1/09.
Official consumer electronics,
mobile phones and tech.
Viewed by 588 million.

International Cricket Council
Official Sponsor from (ICC)
2002-2015.

Following of 2-3
Billion: U.K., Australia,
India, South Africa and
other British
Commonwealth
countries.

Football Club Sponsors:






Sao Paulo
Fulham
Liverpool
Olympic Lyon
Hungary National Team
Iraq National Team
Greece National Team
Russia National Team
LG Amsterdam Tournament
LG World Cup

Most Popular Sports in the world: (approx. 6.71 billion people) 1. Soccer – 3.5 billion
2. Cricket – 2-3 billion
3. Field Hockey – 2 billion
4. Tennis – 1 billion
5. Volleyball – 900 million
6. Table Tennis – 800 million
7. Formula 1 – 588 million
8. Baseball – 500 million
9. Golf – 400 million
10.Gridiron Football – 400 million

1995

•Acquired U.S. based Zenith

1997

•CDMA (3G) Handsets produced

1998

•60’’ plasma T.V.

2000

•Launched the world’s first Internet refrigerator

2001

•World’s first internet washing machine

2003

•Number 1 global producer of CDMA phones

2004

•Advertised world’s first 71” plasma T.V.

2005

• 4th largest mobile phone supplier globally

• 18 million Chocolate phones sold.
2008

• LG Mobile selected as the supplier for the
“World Phone”
• World’s first 3G watch phone with full touch screen.
• LG Dare phone wins CES “Best of Innovations” award

2009

• LG Secret phone wins “red dot design” award
• LG KS 360 phone wins “iF Design’ award.

FEATURED PRODUCTS

Brand Name
◦ top 10 brand in electronics 2008

Marketing in UK
◦ LG hired Alcone Marketing
◦ 10% of market share for mobile phones

Design
◦ LG Prada: top 10 Fashion designs in Europe
◦ Bluetooth Handsets : drive and talk

Consumers’ satisfaction
◦ J.D. Powder and Associates’ study

Supply
management

• Fashion phone
designs

Contracts with
football clubs
◦ Liverpool
◦ Fulham

• Global
Recession

Competitors
◦ Nokia Corporation
◦ Motorola, Inc
◦ Samsung Group

Global Recession

Short-term:
◦ Improve supply management
◦ Satisfy lower market
◦ Bluetooth Handsets : drive and talk

Long term:



Increasing fashion designers field
American Football in USA
Increase market share in Asia
Buying small companies or stocks


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