LG Declares New Era of Blue Ocean Management

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2006-01-08 11:28

Seoul--(뉴스와이어)--LG Electronics (LG), a leader in consumer electronics and telecommunication s, today announced the launch of its first ‘Blue Ocean* Management’ campaign. Underlying its drive to beco me a top three consumer electronics player by 2010, the program incorporates the understanding that only fle xible companies that adapt to lifecycle and industry changes will enjoy continued growth.

Further, LG plans to double its sales volume, profit and shareholder benefit by 2010 with 30% of its sales v olume and 50% of its profit being derived through so-called ‘Blue Ocean Products**.’ The criteria of Blue O cean Products are growth potential (based on sales performance), market leadership (based on market share) a nd its contribution toward profit.

“This paradigm management-style shift will not only allow LG to double revenue and generate higher profits w hile enhancing shareholder value.” CEO S.S. Kim said. “LG will also strengthen its overall capabilities to deliver quality, premium products enhancing its offering to consumers around the world.”

Philosophies of customer-oriented management, competitive advantage in technology and increased management e fficiency are central to this initiative. Additional initiatives of this campaign are strengthening busines s capabilities, enhancing brand value and developing next-generation high-tech business.

While all marketing plans continue to be designed from the viewpoint of its customers, LG will strive to cre ate value for consumers and the market.

Management and Investment Plan

LG’s 2006 sales goal will be a non-consolidated 24 trillion KRW, which is close to last year’s performanc e. The company also plans to invest 2.5 trillion KRW in total ? 1.1 trillion KRW in facilities and 1.4 trill ion KRW in R&D. Investment in facilities includes plasma production lines and R&D institutes.

The R&D investment will include new business categories, such as home network, Car Infotainment, Post PC, OL ED, DMB as well as flagship products categories, including digital TV, PDP and mobile phones.

R&D will focus on technological innovation and cost reduction of market dominant flat panel displays, mainta ining competitiveness in basic technologies for SoC and SW, and secure product leadership through timely dev elopment of premium mobile phones such as SDMB, TDMB, 3G and advanced multimedia phones as digital broadcast ing is converged into mobile technology.

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About LG Electronics, Inc.
LG Electronics (KSE: 06657.KS) is a global leader in providing cutting-edge, convergent electronics, informa tion and communications products designed to meet the diverse needs of fast-changing consumers. With consoli dated sales of US$37.7 billion and overseas sales of US$ 32.6 billion (86% of total sales), LG Electronics e mploys more than 70,000 employees in 76 subsidiaries located in 39 countries and operates four business unit s including Mobile Communications, Digital Appliance, Digital Display and Digital Media. For more informatio n please visit www.lge.com.

Note

* The Concept of Blue Ocean

Blue ocean strategy is about epoch-making move of strengthening business capabilities and streamlining busin ess structure in the five arenas of products, business model, work, system and human resources. For LG, it i s the significant choice for the leap to become one of the global top 3 electronics and telecommunications b y 2010.

** The Blue Ocean Products

Products or services which create a mass market or significantly increase market shares, profit by offering differentiated values in view of customers.

Life's Good

LG Electronics Global PR, Corporate Communications

media contact: Judy Pae at lgpr@lge.com, phone: 82-2-3777-7144

LG Electronics 개요
LG Electronics Inc., (KSE: 06657.KS) is the leader in consumer electronics and mobile communications. The company has more than 72,000 employees working in 77 subsidiaries and marketing units around the world. LG Electronics is the world’s largest producer of CDMA handsets, residential air conditioners, optical storage devices and home theatre systems. With total revenue of more than USD 35 billion (consolidated USD 45 billion), LG Electronics is comprised of four business units: Mobile Communications, Digital Appliance, Digital Display and Digital Media. For more information, please visit www.lge.com.

웹사이트: http://www.lge.com