LG STRATEGIC

BUSINESS UNIT

STRATEGIC MANAGEMENTS
PROF. SUJATA BHOWMICK
INTRODUCTION :-
 The company was founded by HWOI KOO .

 WILLIAM CHO is a ceo of LG company

 company was originally established in oct 1 , 1958 as

lucky Goldstar, producing radios, TVs, refrigerators,
washing machines, and air conditioners.

 The L.G group was a merger of two Korean companies

Lucky and Goldstar.

 Is the second largest producer of television and third

largest producer of mobile phones.

 It has a workforce of 83,000 people working in 119

locationsn around the world.
 HISTORY
 LG Corporation was established as Lak Hui Chemical Industrial Corp. in 1947 by Koo In-hwoi In 1952
 the first South Korean company to enter the plastics industry As the company expanded its plastics business, it
established GoldStar Co. Ltd. in 1958. Both companies Lucky and GoldStar merged to form Lucky-Goldstar in
1983.
 GoldStar produced South Korea's first radio Many consumer electronics were sold under the brand name
GoldStar, while some other household products (not available outside South Korea) were sold under the brand
name of Lucky.
 The Lucky brand was famous for hygiene products such as soaps and HiTi laundry detergents, but the brand
was mostly associated with its Lucky and Perioe toothpaste LG continues to manufacture some of these
products for the South Korean market, such as laundry detergent.
 Koo In-hwoi led the corporation until his death in 1969, at which time, his son Koo Cha-kyung took over. He
then passed the leadership to his son, Koo Bon-moo, in 1995.
 Koo Bon-moo renamed the company to LG in that year.The company also associates the letters LG with the
company's tagline
 "Life's Good". Since 2009, LG has owned the domain name LG.com.
Board of Director

 Shin, Hak-Cheol
 Chairman of the Board/Director/CEO

 Cha, Dong Seok  Kwon, Bong Seok

 Director  Non-standing Director

Kim, Mun-Su  Jho, WhaSun  Lee, Hyunjoo  Chun, Kyung-HoonOutside

Outside Director  Outside Director  Outside Director  Director
 VISION AND MISSION

VISION :-
LG’s vision is o become a worldwide leader in digital that ensures customer satisfaction 6
through innovative products and superior services .

MISSION

 To create value for customer

 To respect human dignity
 To become best in its field
PRODUCT LINE

communication devices

Home entertainment

Home appliance energy solution

Vehicle components
 HOME ENTERTAINMENT

 Home entertainment for Ex. TV , home theater this is the entertainment product
 This assures that you’re receiving good value for your money. Knowing where location a TV is from ensures that
there will be an availability of high-quality parts accessible for a long time.
 When it comes to televisions, LG has a long and illustrious history. In 1966, they manufactured the first black and
white television set in South Korea as GoldStar. By 1976, GoldStar was producing one million ready-made
televisions per year.
 Some features of LG TV and home theater are listed below in the table:
1. Wifi compatibility
2. Headphone Amazon TV Smart App
3. Capable of displaying art work when not in use
4. Web browser
 With the advancement of flat-screen technology, LG today has over 200 plants globally, producing over 60 million
displays yearly! LG’s headquarters are in South Korea, and its many TV facilities are around China and North
America. Several nations have factories for them.LG TVs are manufactured in the following countries:
1. Poland
2. Russia
3. Mexico
4. India
5. Korea 8

6. China
 HOME APPLIANCE
 Home appliance for ex. AC , Dishwashers. ,Microwave Ovens, Refrigerators ,Washing Machines & Dryers. Ext.

 LG Electronics India is eyeing 25-30 per cent growth from the home appliance business in 2023. It aims to garner
about ₹25,000 crore revenue from this segment alone. The South Korean consumer products major on Tuesday said
it has invested ₹200 crore to expand its Pune plant to support manufacturing of side-by-side refrigerators in India.

 he company’s focus on local manufacturing of side-by-side refrigerators in India comes at a time when sales of
premium appliance products have surged in the past three years. At the same time, the consumer durables industry
has stepped up focus on localisation amidst global macro-economic volatility

 demand and strong growth in the premium segment helped LG India rake in ₹20,000 crore revenue in the home
appliance segment in 2022. “We are targeting a growth of 25-30 per cent this year and expecting to clock revenues
of Rs 24,000-25,000 crore in the home appliance segment,” he added. Home Appliance business contributes a
significant chunk to LG India’s overall revenues.
 LG India said that its share in the home appliance product is estimated at about 50.8 per cent in 2022.

 Home appliance for ex. AC , Dishwashers. ,Microwave Ovens, Refrigerators ,Washing Machines & Dryers. Ext.

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 VEHICLE COMPONENTS

 Since establishing the VS Company in 2013, LG has continued to nurture its auto parts business .

 The LG VS Company successfully turned an operating profit in the second quarter of 2022, marking a turnaround
after 26 consecutive quarters in the negative since 2015. Last year, the company recorded sales of KRW 8,649.6
billion and an operating profit of KRW 169.6 billion. It also finished 2022 with an order backlog with a total value of
approximately KRW 80 trillion.

 At the core of the company’s business lies its in-vehicle infotainment system (IVI), which employs advanced
telematics (vehicle communications module) and a digital cockpit system (head unit). LG’s telematics solution
secured an impressive 22.4 percent share of the vehicle telematics market in the first quarter of 2023, while its digital
cockpit system has recorded a double-digit market share since 2021.

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 ENERGY SOLUTION
 Solar Energy: LG is known for its solar panel technology. They manufacture high-quality photovoltaic modules used for
residential, commercial, and industrial solar energy installations. LG's solar panels are recognized for their efficiency,
durability, and performance.
 Battery Technology: LG produces lithium-ion batteries used in a variety of applications, including electric vehicles (EVs),
energy storage systems (ESS), and portable electronics. Their batteries are known for their energy density and reliability.
 Energy Storage Systems (ESS): LG provides energy storage solutions for both residential and commercial use. These
systems store excess energy, typically from solar panels, and can then release it when needed, such as during peak
demand periods or power outages.
 Electric Vehicle Components: LG is a major supplier of components for electric vehicles, including batteries, electric
motors, and power electronics. Many automakers use LG's technology in their EVs.
 Smart Grid Solutions: LG has been involved in developing technologies to support smart grids, which enhance the
efficiency and reliability of electricity distribution and consumption.
 LED Lighting: While not directly related to energy production or storage, LG also offers energy-efficient LED lighting
solutions for homes, businesses, and public spaces. LED lighting is recognized for its energy-saving capabilities.

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 COMMUNICATION DEVICES

 Mobile Phones: LG had a long history of manufacturing mobile phones. They produced a wide range of mobile devices,
including feature phones and smartphones. Some of their popular smartphone series included the LG G, LG V, and LG Stylo.
However, due to increasing competition and declining market share, LG announced the closure of its smartphone business
in April 2021.

 Smartphones: LG's smartphones featured a variety of innovative technologies, including dual screens, modular designs,
and advanced camera capabilities. While they received praise for their unique features, they faced challenges in keeping up
with competitors like Apple and Samsung.

 Tablets: LG also produced Android-based tablets, but these were not as popular as their smartphone counterparts.

 Wearable Devices: LG dabbled in wearable technology, including smartwatches and fitness trackers.

 Communication Infrastructure: In addition to consumer devices, LG was involved in providing communication

infrastructure and solutions for carriers and telecommunications companies.

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Competitors

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JIGNESH SHARMA
SYBMS