BusinessWeek Features LG Electronics as its Cover Story
BusinessWeek Features LG Electronics as its Cover StoryBusinessWeek Features LG Electronics as its Cover Story
- LG Electronics aims to join in the ranks of one of top three electronics players by 2010
- BusinessWeek attributes LG Electronics' success to its strong leadership, speed and product differentiation
- LG Electronics expects is mobile phone sales to grow 50% this year on the back of increased exports of GSM and 3G phones
Seoul, Korea, January 17, 2005 - BusinessWeek, in its January 24, 2005 Asian Edition, featured a 6-page cover story on LG Electronics, detailing CEO S.S.Kim's strong initiatives and the company's goal to become one of top three electronics companies by 2010.
BusinessWeek noted that LG Electronics had received tremendous attention at the 2005 Consumer Electronics Show held in Las Vegas, from January 6 to 9, by showcasing its world's largest commercialized 71-inch plasma TV, world's first terrestrial digital multimedia broadcast-receiving mobile phone and other innovative products.
The magazine hailed LG Electronics' CEO S.S.Kim, who as appliances head, position he held before becoming CEO in October 2003, turned the white goods unit into a double-digit profit maker, 'confounding skeptics who thought LG could never compete with low-cost Chinese producers." The appliances unit outpaced Samsung's appliances unit in 2000 and jumped into the No. 3 position globally (after Whirlpool (WHR) and Electrolux) in 2004. BusinessWeek attributed LG's improved productivity to the so-called TDR (tear-down-and-redesign) campaign of which Mr.Kim had first introduced to his appliances division and used to enhance productivity. Following the TDR project, productivity soared 50% and defects fell by a third due to tighter quality control. Costs were also cut by one third in just two years.
BusinessWeek further observed that the company is outpacing its competitors in the US market with 'speed' and 'product differentiation' strategy, whereby it not only sells high-end products under LG brand but also supplies low-priced products under Zenith, a U.S. brand it bought in'95.
The magazine noted that LG Electronics will target handset division as the anchor of its global brand-building campaign. According to BusinessWeek, "its success with the likes of Verizon, Cingular, and Hutchison has underscored its potential". The company boosted its global unit sales of handsets from 6.9 million in 2000 to 44 million last year. In 2004, it sold 3 million 3G handsets to Hutchison Whampoa, making it the largest supplier of 3G phones to the Hong Kong-based company. LG Electronics expects is mobile phone sales to grow 50% this year.
Meanwhile, LG Electronics will increase R&D spending and improve marketing. LG has earmarked USD 1.73 billion for R&D in 2005, or 6% of sales - up 40% from last year.
BusinessWeek, established in'29, enjoys a circulation of 1.3 million copies around the world. LG Electronics' cover story was featured in the Asian edition with a 6-page lay-out and likewise, the story was also published in the European and US editions. Furthermore, CEO S.S.Kim, while serving as head of appliance unit, was featured in BusinessWeek as one of "Stars of Asia - 25 Leaders at the Forefront of Change" in the June 9, 2003 edition. LG Electronics also received spotlight with its No.1 placing in the June 21, 2004 edition, "The InfoTech 100".
About LG Electronics, Inc.
LG Electronics, Inc. (Korea Stock Exchange: 06657.KS), headquartered in Seoul, South Korea, was established in'58 and has grown into a global force in electronics, information and communications products with annual total revenues of US $29.9 billion (consolidated). With more than 64,000 employees working in 73 overseas subsidiaries and marketing units around the world, LG Electronics is comprised of four main business companies including Digital Display, Digital Media, Digital Appliance, and Mobile Communications.
LG Electronics' goal worldwide is to create and enable the intelligent networking of digital products that will make consumers' lives better than ever. For more information please visit www.lg.com