LG Electronics is a South Korean multinational electronics company founded in 1958. It has grown to be a global leader in consumer electronics, home appliances, and telecommunications equipment. The document outlines LG's history, achievements, brand identity, business culture, SWOT analysis, and strategies for creating a global brand. Key milestones include being the first Korean company to establish overseas production and becoming the world's largest LCD TV and OLED TV manufacturer.

1. CEO: Bon-Joon Koo

3. LG Electronics INC
Program Objectives:
 At a Glance
 Achievement
 Brand Identity
 From the First in Korea to the best in the world
 Initial Strategic Decisions at Indian Market
 Business Culture ( Environmental and Employee Policy)
 SWOT Analysis
 Creating Global Brand

4. LG Electronics plays an active role in world markets with its assertive
global business policy. As a result, LG Electronics controls 114 local
subsidiaries worldwide, with roughly 87,000 executives and
employees. Its production network is spread across North America,
South America, Europe, the Middle East and Africa, Asia and CIS.

5.  Technology innovation and design leadership are the keys to success in an untapped
market.
 Type of Business Entity : Public
 Industry : Consumer electronics , Home appliances , Telecoms equipment
 Founded: October 1958 ( Gold Star) by KOO IN – HWOI
 Since taking its very first step in 1958 as Gold star, LG electronics' 50-year history can
truly be called 'Korea's history of electronics'.
 LG electronics has improved people's living standards and has contributed to the
national economy with aggressive investments and constant technological
developments, writing chapter after chapter about Korea's first and best electronics
company. (₩60,200.00 ) ( 1 ₩ = 0.056 INR )
“ The future we envisage is a people company that has the best talents to produce the best
results with the best teamwork. “
Products and technology continue to evolve to make customers' lives more convenient and
enjoyable. It has been a belief in LG electronics since its foundation that 'customers are the
starting point and destination of our management.

10.  First among the Korean companies to establish a foreign branch.
 First among the private companies to establish a general R&D
laboratory.
 First in the industry to achieve and surpass 100 million dollars
exportation.
 First in the industry to provide a consumer consulting office.
 First among the Korean companies to establish an overseas
production plant. (huntsville, Alabama).
 First in the industry to establish a design laboratory.
 LG electronics is also proud to have been the first company to
represent Korea worldwide, starting from 1962 when the first
Korean- made radios were exported to the USA.
Achievement

11. 1960's :
Produces Korea's first radios, TVs, refrigerators, washing machines, and air conditioners .
1997:
World's first CDMA digital mobile handsets.
Develops world's first Integrated Circuit set for Digital Television.
Develops world's first 60-inch plasma TV in 1998.
2001:
Launches world's first Internet washing machine, air conditioner, and microwave oven.
2003 :
Commercializes world's first 55" all-in-one LCD TV
Commercializes world's first 71" plasma TV
Develops world's first Satellite- and Terrestrial-Digital multimedia Broadcasting handsets
2008 : Introduces new global brand identity: "Stylish design and smart technology, in
products that fit our consumer's lives."
2012 : First to market world’s first 84-inch ULTRA HD TV .
Major Milestones

12. From the First in Korea to the best in the world
 leading undefeated paths to become the number-one in its industry.
Founding Principle : harmony and solidarity pioneering spirit research and
development
Management Principle :” creating value for customer respecting human dignity”
“These days, I spend my nights listening to the radio.“
"we could certainly deal with it. if we need to learn, we'll go abroad and learn; if
we can't, we'll invite foreign technical experts. i say let's unveil the electronic
industry within us."
Goldstar initially founded in October 1st 1958 eventually grew into today's global
company, LG electronics.
LG electronics' first radio is regarded as the hallmark of the new Korean
electronic industry era.
On November 15, 1959, the first domestic radio a-501 came off the assembly line.
Goldstar!

13. Action: In 1989, however, Goldstar faced the biggest challenge in its history of
Korean leading company, hit by an unprecedented labor- management dispute.
Learning: From which the company learned to seek a stronger
relationship.(exemplifying the win-win relationship the company forged. Labour
management collaboration)
In 1995, world trade organization was formed and the world's trade order
underwent radical changes.
The subsequent globalization threw the business environment into an endless
competition.
Competitions for new opportunities toward the Chinese and Indonesian market
were fierce, and the race to the emerging businesses, including the new
multimedia industry, was reckless.
Henceforth in January 1st 1995, Goldstar which led the Korean electronic industry
for 37 years gave way to LG electronics, face to the dawning of the new era.
But in 1997, Korea faced the biggest economic downfall in its history ( Foreign
exchange crisis).
Action: The company restructured its workforce and its organization to
strengthen its competitiveness, and focused on customer-oriented researches and
developments.

14. In 1998, four years after its introduction, LG electronics' CD-ROM drive(optical storage)
scored number one in the global market share.
LG electronics INC
Year over year, LG Electronics Inc. has seen revenues remain relatively flat (58.1T KRW to
59.0T KRW).
The company now faces new challenges such as acquiring core technologies, expanding its
market and alleviating its restrictions to once again lead the global Korea.
Classification First Year Today
Employees 300 (1958) 87,000
Sales Revenue 50 Million KRW 58140 Billion KRW (Source
:Boomberg)
Exportation 50K dollars 18.3 billion Dollars (2007)
Capital 10 Million KRW 12,689 B KRW ( Equity Share
Holder)
Net income 29 KRW(year 1962) 456.2 USD

15. Brand Identity
 LG is the brand that is Delightfully Smart. "Life's Good" slogan, and futuristic
logo are a great representation of what they stand for.
 Global, Tomorrow, Energy, Humanity and Technology are the pillars that this
corporation is founded on; with the capital letters L and G positioned inside
a circle to center their ideals above all else, humanity.
 The letters "L" and "G" in a circle symbolize the world, future, youth,
humanity, and technology. Their philosophy is based on Humanity.
 LG's efforts to keep close relationships with the customers around the
world.
 Logo is the fundamental visual expression used to identify LG.
 It expresses the quality and sophistication that is the hallmark of LG
products.
 Corporate Logo and 3D Logo.

16. This was in the early 1990s, and the rules at the time didn't permit foreign
companies to start independent ventures. So Lucky Goldstar took on not one,
but two joint venture partners.
In 1997, the Foreign Investment Promotion Board finally gave the Korean
company permission to set up its own factory to make washing machines and
refrigerators.
Swung into action and set up a state-of-the-art manufacturing facility at Greater
Noida, Uttar Pradesh.
There's been no looking back since then. In October 2004, LG set up a second
manufacturing facility at Ranjangaon, near Pune, which makes white goods as
well as cellular phones -- the first GSM handset manufacturing facility in India.
Starting from Rs 150 crore (Rs 1.5 billion) in 1997, LG registered a turnover of Rs
6,500 crore (Rs 65 billion) in 2004.
LG is one of the most aggressive advertisers in the white goods industry,
spending close to 5 per cent of its revenue on marketing activities -- that's Rs
130 crore (Rs 1.3 billion) in 2004.

18. Challenges
LG is one of the few vendors offering devices in the premium segment, sales are
more polarized towards Apple iPhone due to aspirational nature of the brand.
Right now, LG is sandwiched and facing competition from Apple and Samsung at
the premium end, while in the entry-to-mid segment the local and Chinese
smartphone vendors are ruling.
Weak television earnings stemming from higher price competition and adverse
exchange rate effects in markets like Brazil and Russia.

19. Business and Strategy

20. Future Projection
South Korea's LG Electronics Inc, the world's second largest
television maker after Samsung Electronics Co Ltd, will soon shift its
TV production in Thailand to Vietnam for logistical ease and
efficiency. (Wages are one factor... but the main one is to ensure
quality, as well as logistics)
LG produces about 600,000 television sets a year in Thailand worth
8 billion baht ($243 million), with 100,000 sets for exports. (($1 =
32.94 baht)
China-to-Vietnam route takes less than a week.
South Korean conglomerate LG Group plans record $5.57 billion(6.3
trillion won) R&D investment in 2015.(12 Mar-15 , Source: ET). Last
year Investment was 5.9 trillion won.

21. LG Group, which has arms including appliances maker LG
Electronics Inc and LG Display Co Ltd, said in a statement that
technologies like electric car batteries, next-generation displays
and the so-called Internet of things were key areas for investment.
“There is a founding spirit at the heart of lG electronics' 50-year
history that has made us what we are today. This is the founding
spirit of harmony among employees, its pioneering approach, and
its research & development expanded and developed further into
value creation for the customer and human-oriented management.
“

22. A penetrative distribution strategy ensured that products were
available even in smaller towns and cities, breaking the chain of
urban dependency that plagues most white goods manufacturers.
"We push rural marketing," agrees Kim.
LG Electronics continues to make efforts to implement its
management philosophy of respecting human dignity. Instead of
striving for short term achievements, LGE is making an effort to
recruit outstanding individuals and foster core human resources,
despite difficult business conditions, to ensure long term growth. LGE
is also supporting employee sustainable capacity enhancement and is
making an effort to form a creative and free corporate culture that
encourages innovative ideas.

23. Marketing strategy:
Sports events sponsorship
Sponsored football club Sao-Paulo
Backed products with 3 year warranty
Instantaneous service in case of product failure
Agreements with local distributors
Enormous focus on relationship development

25. ENERGY STAR Qualification
ENERGY STAR is a certification program established by the U.S. Environmental Protection
Agency (EPA) and the U.S. Department of Energy to promote energy-efficient consumer
products. Almost 500 LG Electronics’ product models were qualified ENERGY STAR in 2013, its
number of Most Efficient models increase d by 55% from the previous year.

26. LG RECOGNIZED BY UNITED NATIONS FOR EMISSION REDUCTION EFFORTS
LG Electronics (LG) has become the world’s first to receive Certified
Emission Reduction (CER) credits in appliance industry, from the Clean
Development Mechanism (CDM) project encouraged by the United Nations
Framework Convention on Climate Change (UNFCCC).
In the Indian market, LG acquired CER credits for its enhanced energy
efficient refrigerators . The refrigerator project was awarded CER credits
equivalent to the amount of reduced energy consumption. LG, which earned
approximately seven-thousand tons in CER credit earlier this month, expects
to eliminate 5.8 million tons of CO2 for the refrigerator project over the next
10 years. Credits earned through this effort are expected to create as much
as EUR 3.1 million (USD 3.4 million) in additional revenue, of which a portion
will be donated to assist impoverished women and children in India.

27. LG SHOWCASES ITS LATEST TECHNOLOGIES IN SMART CAR OF THE FUTURE
LG Electronics (LG) is showcasing its various automotive products at the 85th
Geneva International Motor Show in Geneva, Switzerland from March 3-15. In
collaboration with top automotive design studio Italdesign Giugiaro, LG has
contributed several of its products and technologies for the Gea concept car.
LG has supplied all in-car displays for the Gea. A 12.3-inch full HD In Plane Switching
display, which handles instrument control and displays other information, is located at
the center and on the passenger side of the car. In addition, there is a 6-inch curved
HD Plastic OLED (P-OLED) display in the front and rear console.
LG’s technology is not limited to the inside as the company’s Surface Illumination (SI)
LED technology decorates the tail lamp. Also, there are three rear cameras replacing
conventional mirrors which can be seen only when they are being used.

29. Conclusion
LG should have focused more on Rural marketing (untapped
market).
Product life cycle of electronics item is too short. Rapid
technological path needs to be explored.
Aggressive advertisement policy needs to expedited.
LG should doubly ensure the quality and also the durability of
product.
Factory owned outlet needs to be explored.
LG should strategically handle unpredicted labor cost.