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Introduction to Lg INTRODUCTION TO LG History of company The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. 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 Gold Star. The Gold Star brand is still perceived as a discount brand. In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States. Global Operation LG Electronics is playing an active role in the world market with its assertive global business policy. As a result, LG Electronics controls 110 local subsidiaries in the world with around 82,000 executive and employees. LG Group Portfolio 1. LG.Philips LCD 2. LG Chemical 3. LG Telecom 4. LG Powercom 5. LG Twins 6. LG Dacom BUSINESS AREAS AND MAIN PRODUCTS Mobile communications (a) CDMA Handsets, (b) GSM Handsets, (c) 3G Handsets, (d) Cellular Phones Digital appliance a) Air Conditioners, b) Refrigerators, c) Microwave Ovens, d) Washing Machines, e) Vacuum Cleaners, f) Home Net, g) Compressors for Air Conditioners and Refrigerators Digital display a) Plasma TVs, b) LCD TVs, c) Micro Display Panel TVs, d) Monitors, e) PDP Modules, f) OLED Panels, g) USB Memory, h) Flat Panel Computer Monitors Digital media a) Home Theater Systems, b) DVD Recorders, c) Super Multi DVD Rewriters, d) CD±RW, e) Notebook PCs, f) Desktop PCs, g) PDA Phones, h) MP3 Players, i) New Karaoke Systems, j) Car Infotainment FEW FACTS ABOUT LG LG shipped 14.5M smartphones in Q2 2014, up 20% year over year LG Electronics market cap as of May 2014 was $10.03 B. On Forbes list of leading 2000 global company LG is on #766. LG manufactures display used in Apple’s iPhone (Retina Display) and various other products. LG makes electronics, chemicals, and telecom products and operates subsidiaries such as LG Electronics, Zenith, LG Display, LG Telecom and LG Chem in over 80 countries. 2013 global sales of USD 53.10 billion, the company operates its business through divisions: Mobile Communications, Home Entertainment, Home Appliances, Air Conditioning & Energy Solutions, and Vehicle Components. LG Electronics is currently the world's second-largest television manufacturer. VISION & MISSION STATEMENT ANALYSIS ESSENTIALS OF A GOOD VISION STATEMENT Should significantly stretch the resources and capabilities of the firm. Should inspire people in the organization. Should unite the people in the organization. LG’s VISION STATEMENT No. 1 LG is our strategic vision which we as an organization of many businesses aspire towards. It envisions LG to become leader in its respective business areas by offering differentiated value by securing competitive edge over global competition. We aspire towards market leadership that is not easily copied or replaced by competition. “A lasting company which contributes to human prosperity and fulfills social responsibility by delivering sustained and differentiated customer values.” LG’s VISION STATEMENT SIGNIFIES Commitment to inspire its communities by leveraging LG’s three key strengths : NEW TECHNOLOGY INNOVATIVE PRODUCTS CREATIVE SOLUTIONS LG’s vision statement is stretched as it inspire everyone related with the company to work in such a manner so that that they attain the number one position in the industry. The vision statement is consumer centric and product centric as it specifies high quality products, customer values, and social responsibility, Products that are innovative which makes consumers life easy and deliver happiness. The statement also motivates its employee to deliver their 100% and create products which are new & innovative which can make them world leaders this makes the employees unite. ESSENTIALS OF A GOOD MISSION STATEMENT Obligation the firm holds to its stakeholders. Source of Competitive Advantage. Organization’s view of the future. LG’s MISSION STATEMENT The mission of LG is to provide the customers with utmost satisfaction through leadership. The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction. LG’s mission is to deliver innovative digital products and services that make our customers’ lives better and easier—happier, even—through increased functionality and fun. LG further addresses Customers, Investors, Employees and Competitors:- To Customers: A trustworthy brand that provides best products and services. To Investors: A secured investment that yields sustained high returns. To Employees: A great work place that talented individuals want to join. To Competitors: A leader that dominates, but a leader to learn from. LG’s MISSION STATEMENT SIGNIFIES LG’s mission statement is obliged towards all its stakeholders and it tries to inspire and attain confident from all the stakeholders of the company. LG’s mission statement talks about new and innovative products which at the same time they cannot be copied or replaced easily so that they have that competitive advantage over their competitors. LG’s mission statement is such that it addresses almost all the stakeholders individually. Organizations view of the future is to deliver innovative digital products and services that makes customers’ lives better and easier. SWOT ANALYSIS Strength Wide range of products to serve all categories and a strong focus on technology and quality Effective localization of product offerings for growth markets like India, Brazil and China Brand offers sound rational appeal – good product features and good value for money Good after sales service and wide distribution network Subsidiaries enjoy independence in decision making and hence have flexibility in adapting to the local market Sponsorship of sports and entertainment events enhances visibility It has nearly 100,000 employees and is one of the top mobile manufacturers Weakness Brand lacks influence in the opinionated segment of early adopters especially in the social media environment Brand has limited market share compared to market leaders Opportunity Fast growth of home appliances, electronics goods market in emerging economies Convert improved brand image and awareness in to market share Increase the already Wide product portfolio Threats Price war with close Korean competitors like Samsung can disrupt growth in price sensitive markets Highly competitive industry dynamics Stagnant urban demand Instances of false green claims can erode brand value and consumer trust .
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