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) CDRW,
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 Apples 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.
LGs 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.
LGs VISION STATEMENT SIGNIFIES
Commitment to inspire its communities by leveraging LGs three key strengths :
NEW TECHNOLOGY
INNOVATIVE PRODUCTS
CREATIVE SOLUTIONS
LGs 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.
Organizations view of the future.
LGs 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.
LGs mission is to deliver innovative digital products and services that make our customers lives
better and easierhappier, eventhrough 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.
LGs MISSION STATEMENT SIGNIFIES
LGs mission statement is obliged towards all its stakeholders and it tries to inspire and
attain confident from all the stakeholders of the company.
LGs 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.
LGs 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