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“A Country's Brands Are a Reflection of Its Competitive Strengths and a Manifestation of Its Innovation and Intellectual Capacity

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“A Country's Brands Are a Reflection of Its Competitive Strengths and a Manifestation of Its Innovation and Intellectual Capacity “A country's brands are a reflection of its competitive strengths and a manifestation of its innovation and intellectual capacity. I strongly believe that a country's economic capacity is significantly enriched when its institutions build and own internationally competitive brands. Winning brands serve as market anchors to support the competitiveness of the entire value chains of which they are a part. Strong domestic brands create much larger value since they create, capture and retain value within the country. ITC takes justifiable pride in creating world-class Indian brands that have demonstrated immense vitality in the global Indian market place”. Y C Deveshwar, Chairman, ITC Limited LG Electronics (Korean: LG전자, KRX: 066570, LSE: LGLD) is a South Korean multinational electronics company headquartered in Yeouido-dong, Seoul, and a member of the LG Group chaebol. The company operates its business through five divisions: Mobile Communications, Home Entertainment, Home Appliances, Air Conditioning, and Energy Solutions. It is the world's second-largest television manufacturer (after Samsung and Hitachi),[2] and the world's fifth- largest mobile phone maker by unit sales in the second quarter of 2012.[3] History[edit] The company was originally established in 1958 as GoldStar, producing radios, TVs, refrigerators, washing machines, and air conditioners.[4] The company has received some technical supports from Hitachi for many years, so it has a deep relation with Hitachi. The LG Group was formed through the merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is abackronym. Before the corporate name change to LG, household products were sold under the brand name of Lucky, while electronic products were sold under the brand name of GoldStar (Hangul:금성). In January 2009 LG was able to buy the domain name LG.com, for a price reportedly to be more than $100 million, placing it among the companies who own their two letter brand's domain name. In 1994, GoldStar gained sponsorship from The 3DO Company to make the first 3DO Interactive Multiplayer. In 1995, GoldStar was renamed LG Electronics, and acquired the US electronics company Zenith. LG Solar Energy is a subsidiary formed in 2007 to allow LG Chem to supply polysiliconto LG Electronics for production of solar cells. In 2008, LG took its first dive into the solar panel manufacturing pool, as it announced a preliminary deal to form a joint venture with Conergy. Under the deal, set to be completed by year's end, LG would acquire a 75 percent stake in Conergy's Frankfurt solar-panel plant.[5] LG has produced camcorders called ARTCAM and DSLRs.[6] By 2005, LG was a Top 100 global brand, and in 2006, LG recorded a brand growth of 14%.[7] Its display manufacturing affiliate, LG Display, is now the world's largest plasma panel manufacturer.[8] On December 5, 2012, the antitrust regulators of European Union fined LG Electronics and several other major companies for fixing prices of TVcathode-ray tubes in two cartels lasting nearly a decade.[9] Operations[edit] LG Electronics has about 75 subsidiaries worldwide. LG Electronics owns Zenith and controls 37.9 percent of LG Display.[10] Home Entertainment division[edit] The Home Entertainment division offers Plasma TVs, LCD TVs, PDP Modules, OLED Panels, USB Memory, Flat Panel Computer Monitors, Home Theater Systems, Blu-ray Disc players, DVD Recorders, Super Multi DVD Rewriters, CD±RW, Notebook PCs, Desktop PCs, MP3 Players. The Home Entertainment division merged with the Business Solutions Division in October 2010. Mobile Communications division[edit] The Mobile Communications division provides mobile communication terminals, personal computers and communication devices. LG mobile devices are made for CDMA networks worldwide. LG phones are available also in unlocked versions that can be used on any GSM and network worldwide.[11] LG sold 116.7 million mobile phones in 2010, corresponding to a market share of 8.4%.[12] Home Appliances division[edit] The Home Appliances division manufactures refrigerators, washing machines, stoves, microwave ovens, vacuum cleaners, compressors, and motors. Its 2007 sales totaled KRW 11.8 trillion, accounting for 29% of the company's total revenue. The division's profit was KRW 717.1 billion. About 35% of the company's home appliance revenue comes from the North American market.[13] Air Conditioning & Energy Solutions division[edit] The Air Conditioning & Energy Solutions division makes air conditioners and LED lighting. Products[edit] LG Electronics' products include computers, televisions, mobile phones, home appliances and semiconductors (DRAM, SDRAM and flash memory). Smart TVs and apps[edit] LG Electronics introduced their first Internet TV in 2007, originally branded as "NetCast Entertainment Access" devices. They later renamed the 2011 Internet TV's to “LG Smart TV” when moreinteractive television features were added, that enables the audience to receive information from the Internet while at the same time watching conventional TV programming.[14][15] LG's Magic Remote uses Hillcrest Labs' Freespace technology to allow users to change channels using gestures[16] and Dragon NaturallySpeaking technology for voice recognition.[17] An LG Direct Drive washing machine An LG Optimus 3D mobile phone/smartphone An LG laptop PC An LG water filter An LG Smart TV Advertising and sonic branding[edit] The mnemonic G♭ E♭ F♭ D♭ E♭ C♭, (MP3 file of sonic logo) was produced by Musikvergnuegen and written by Walter Werzowa in 2008. The sonic tag has been featured in commercials and devices and is recognized worldwide.[citation needed] Sponsorships[edit] LG Electronics sponsored the English football club Weyside Rovers (Guildford) from 2000 until 2002 and the English football club Fulham F.C until July 2010. LG sponsored the Brazilian football club Sao Paulo FC from 2001 to 2009, during which time the club were the winners of the 2005 FIFA Club World Championship. LG currently sponsor the Australian Football League teamFremantle Football Club, the Costa Rican football club Liga Deportiva Alajuelense, the Australian National Rugby League team Cronulla Sharks, and the Argentinian club Boca Juniors. In August 2013, it was announced that LG Electronics would sponsor German Bundesliga club Bayer 04 Leverkusen for the next three years with an option to extend for one more year. LG sponsors the International Cricket Council, the world governing body for cricket. It also sponsors ICC Awards.[18] During the period 2001–2003 LG sponsored the snooker Grand Prix. During these years the tournament was known as the LG Cup. In 2008 LG became sponsors of the Extreme Sport 'FSO4 Freeze' festival[19] and in January 2009 LG became a Global Partner and Technology Partner of Formula One.[20] LG is now an official supplier to Virgin Racing, as well as Lotus Racing and engine manufacturer Cosworth.[21] LG sponsors the LG Mobile World Cup texting competition.[22] LG also sponsors London Fashion Week and the LG Arena in Birmingham.[23] They also have sponsored professional Starcraft 2, Incredible Miracle since 2011 Environmental record[edit] LG is listed in Greenpeace’s Guide to Greener Electronics where it ranked joint 13th (with Toshiba) out of 15 leading electronics makers in November 2011, scoring 2.8 out of 10. LG benefited from having a penalty point lifted from the previous edition (October 2010). The company was penalised for failing to meet its commitment to make products free of polyvinyl chloride (PVC) plastic and brominated flame retardants (BFRs) by the end of 2010. All of LG's mobile phones are now free from PVC and BFRs while other products such as TVs and notebooks contain PVC/BFR free parts; LG aims to phase these substances out from TVs monitors and PCs by 2012 and household appliances by 2014.[24] In the Guide the company scored badly on the Energy criteria, being criticized for setting a weak target for the reduction of greenhouse gas emissions and not making renewable energy part of its low carbon strategy. LG scored most points in the Sustainable Operations category with the company providing take- back for obsolete phones in 52 countries and being in the process of addressing the issue of conflict minerals. However, the guide warned that LG risks incurring a penalty point in future editions as it was still being listed as a client of Asia Pulp and Paper (APP) who have been linked to illegal logging and deforestation in Indonesia.[24] Choice magazine, in independent tests of popular LG fridge models in 2010, found the energy consumption in two models was higher than claimed by LG. LG was aware of the problem and had offered compensation to affected customers.[25] In 2004, LG made 4A-rated water efficiency claims for numerous washing machines before they were certified. LG gave undertakings to theAustralian Competition and Consumer Commission (ACCC) to provide appropriate corrective notices and upgrade and maintain its trade practices compliance program. In 2006, LG overstated energy efficiency on five of its air conditioner models and was again required to offer consumers rebates to cover the extra energy costs.[25] The history of LG has always been based around the company's desire to create a happier, better life. LG Electronics was established in 1958 and has since led the way into the advanced digital era thanks to the technological expertise acquired by manufacturing many home appliances such as radios and TVs. LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company. LG Electronics 50-year History Download(PDF, 21.0mb) 1958 Founded as GoldStar 1959 Korea first radios 1998 60-inch Plasma TV 1999 Joint venturewith Philips 2003 Enters UK GSM handset market 2005 Develops 3G UMTS DMB handset 2007 Launches HD disc player and drive 1958 Founded as GoldStar 1960's Produces Korea's first radios, TVs, refrigerators, washing machines, and air conditioners 1995 Renamed LG Electronics Acquires US-based Zenith 1997 World's first CDMA digital mobile handsets supplied to Ameritech and GTE in U.S.
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