Description
Founded January 5, 1947
# Headquarters Address LG Twin Towers, 20
Yoido-dong, Youngdungpogu, Seoul, South
Korea
# Our Businesses Electronics, Chemicals,
Telecommunications and Service
Prepared by :
Jeyran Babajanova, Sean Hurley,
Shu Fang (Jenny), Tianyi Zhao (Angela)
? 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
•Chairman
In Hwoi
Koo
founds LG
by
establishin
g Lak Hui
Chemical
Industrial
Corp.
(now LG
Chem)
1953
•Lak Hui
Industry
establishe
d (now LG
Internatio
nal Corp.)
1958
•Goldstar
Co.
establishe
d (now LG
Electronics
)
1967
•Honam Oil
Refinery
Co.
establishe
d (now GS
Caltex of
GS Group)
1970
•Cha Kyung
Koo takes
office as
Chairman
1974
•Lak Hui
changes
its name
to Lucky
Co., Ltd
1995
•Bon Moo
Koo takes
office as
Chairman
• New
Corporate
Identity
(CI)
establishe
d (Lucky
Goldstar
LG)
•First radio
1959
•First electronic fan
1960
•First telephone
1961
•First refrigerator
1965
•First black and white TV
1966
•First air room conditioner
1968
•First elevator, escalator, washing machine
1969
•First cassette recorder 1973
•First PMC single station equipment 1974
•First videotape recorder 1979
•first electronic VTR 1981
•First color video camera
1982
•First compact disc player in Korea
1983
•First multiplex television with sound and color in Korea
1984
•First laser machines in Korea, single unit video 8 mm VTR
in Korea
1985
Goldstar produced first electronics in Korea.
1962
•Goldstar introduces private
loans for the first time in
Korea
1975
•Goldstar establishes the
Central Research and
Development Institute
1976
•Goldstar Precision Industry
(currently LG Innotek Co.,
Ltd.) established
1977
•Goldstar develops color
television
1978
•Goldstar achieves exports
to the amount of 100
million USD
1989
•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
1958-1995
•Chairman Bon Moo Koo created and enforced "Jeong-Do" Management* and "No.
1 LG" as the company's core management goals.
1995
•LG Electronics Inc. establishes the LG-IBM PC company
1996
•LG Electronics Inc. develops the thinnest plasma display panel in the world
1999
•LG Electronics becomes the world's first to develop organic EL for IMT-2000
2001
•LG Electronics develops the world's first land-based digital multimedia
broadcasting phone
•LG Electronics unveils 3G mobile phones for Hutchison
2004
•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
2005
•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
2006
•LG Electronics is ranked first in the global CDMA market for two consecutive years 2007
1995-Today
? 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)
?
Nokia
software
Music
game
communication
business
mobility
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
communications.
? 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 second-
largest mobile phone marker. Now Motorola can only rank at third.
? Samsung slips into No.1 mobile phone slot in US Leaves Motorola sadly Second
products
widely sold
through
direct
sales
Retailers
&dealers
licensees
distribut
ors
Main customers of Motorola
Wal-
Mart
Veriz
on
the
US
Gove
rnme
nt
? 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.
Troubles
Advantages
General Outline
Milestones
1958:
Goldstar
Established
(LGE)
1962:
LGE
expands
business to
the U.S.
with radio’s.
1997:
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
0
5
10
15
20
25
30
35
40
45
50
2005 2006 2007 2008
10 10
11
15.8
10
11
12
10
10
13
6
5
5
8.6
4.5
16
4.6
KRW in
Trillions
Global Sales
BS
Home Ent.
AC
Home App.
D.Media
D.Display
D.App.
Mobile
Nokia, 41
Samsung, 15.4
Motorola, 9.5
LG, 9.3
SonyEricsson,
8.2
Others, 16.6
2008 Q2 % Market Share
Nokia
Samsung
Motorola
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.
? Official Sponsor from
2002-2015.
? Following of 2-3
Billion: U.K., Australia,
India, South Africa and
other British
Commonwealth
countries.
International Cricket Council
(ICC)
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
•4
th
largest mobile phone supplier globally
2008
•18 million Chocolate phones sold.
•LG Mobile selected as the supplier for the
“World Phone”
2009
• World’s first 3G watch phone with full touch screen.
• LG Dare phone wins CES “Best of Innovations” award
• 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
doc_296466608.pdf
Founded January 5, 1947
# Headquarters Address LG Twin Towers, 20
Yoido-dong, Youngdungpogu, Seoul, South
Korea
# Our Businesses Electronics, Chemicals,
Telecommunications and Service
Prepared by :
Jeyran Babajanova, Sean Hurley,
Shu Fang (Jenny), Tianyi Zhao (Angela)
? 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
•Chairman
In Hwoi
Koo
founds LG
by
establishin
g Lak Hui
Chemical
Industrial
Corp.
(now LG
Chem)
1953
•Lak Hui
Industry
establishe
d (now LG
Internatio
nal Corp.)
1958
•Goldstar
Co.
establishe
d (now LG
Electronics
)
1967
•Honam Oil
Refinery
Co.
establishe
d (now GS
Caltex of
GS Group)
1970
•Cha Kyung
Koo takes
office as
Chairman
1974
•Lak Hui
changes
its name
to Lucky
Co., Ltd
1995
•Bon Moo
Koo takes
office as
Chairman
• New
Corporate
Identity
(CI)
establishe
d (Lucky
Goldstar
LG)
•First radio
1959
•First electronic fan
1960
•First telephone
1961
•First refrigerator
1965
•First black and white TV
1966
•First air room conditioner
1968
•First elevator, escalator, washing machine
1969
•First cassette recorder 1973
•First PMC single station equipment 1974
•First videotape recorder 1979
•first electronic VTR 1981
•First color video camera
1982
•First compact disc player in Korea
1983
•First multiplex television with sound and color in Korea
1984
•First laser machines in Korea, single unit video 8 mm VTR
in Korea
1985
Goldstar produced first electronics in Korea.
1962
•Goldstar introduces private
loans for the first time in
Korea
1975
•Goldstar establishes the
Central Research and
Development Institute
1976
•Goldstar Precision Industry
(currently LG Innotek Co.,
Ltd.) established
1977
•Goldstar develops color
television
1978
•Goldstar achieves exports
to the amount of 100
million USD
1989
•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
1958-1995
•Chairman Bon Moo Koo created and enforced "Jeong-Do" Management* and "No.
1 LG" as the company's core management goals.
1995
•LG Electronics Inc. establishes the LG-IBM PC company
1996
•LG Electronics Inc. develops the thinnest plasma display panel in the world
1999
•LG Electronics becomes the world's first to develop organic EL for IMT-2000
2001
•LG Electronics develops the world's first land-based digital multimedia
broadcasting phone
•LG Electronics unveils 3G mobile phones for Hutchison
2004
•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
2005
•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
2006
•LG Electronics is ranked first in the global CDMA market for two consecutive years 2007
1995-Today
? 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)
?
Nokia
software
Music
game
communication
business
mobility
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
communications.
? 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 second-
largest mobile phone marker. Now Motorola can only rank at third.
? Samsung slips into No.1 mobile phone slot in US Leaves Motorola sadly Second
products
widely sold
through
direct
sales
Retailers
&dealers
licensees
distribut
ors
Main customers of Motorola
Wal-
Mart
Veriz
on
the
US
Gove
rnme
nt
? 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.
Troubles
Advantages
General Outline
Milestones
1958:
Goldstar
Established
(LGE)
1962:
LGE
expands
business to
the U.S.
with radio’s.
1997:
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
0
5
10
15
20
25
30
35
40
45
50
2005 2006 2007 2008
10 10
11
15.8
10
11
12
10
10
13
6
5
5
8.6
4.5
16
4.6
KRW in
Trillions
Global Sales
BS
Home Ent.
AC
Home App.
D.Media
D.Display
D.App.
Mobile
Nokia, 41
Samsung, 15.4
Motorola, 9.5
LG, 9.3
SonyEricsson,
8.2
Others, 16.6
2008 Q2 % Market Share
Nokia
Samsung
Motorola
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.
? Official Sponsor from
2002-2015.
? Following of 2-3
Billion: U.K., Australia,
India, South Africa and
other British
Commonwealth
countries.
International Cricket Council
(ICC)
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
•4
th
largest mobile phone supplier globally
2008
•18 million Chocolate phones sold.
•LG Mobile selected as the supplier for the
“World Phone”
2009
• World’s first 3G watch phone with full touch screen.
• LG Dare phone wins CES “Best of Innovations” award
• 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
doc_296466608.pdf