Lg Strength

Only available on StudyMode
  • Topic: Mobile phone, LG Electronics, Digital video recorder
  • Pages : 3 (685 words )
  • Download(s) : 242
  • Published : February 15, 2009
Open Document
Text Preview
LG Electronics (LGE) is a manufacturer of electronic appliances, home entertainment products, communication devices and electronic components. The company manufactures a wide range of products ranging from color monitors to LCD products to home appliances. The company also manufactures wireless handsets and telecommunication infrastructure systems. A diversified operation enables the company to take advantage of opportunities within specific markets and geographies, and at the same time protects it from segment specific setbacks. However, counterfeit product affects the revenue of the company in the long run.

Strengths
Diversified operations
LGE has diversified operations. The company manufactures a wide range of products ranging from color monitors to LCD products to home appliances. It also manufactures wireless handsets and telecommunication infrastructure systems. LGE generates revenues through six business divisions: LCD (24.2%), digital display (21.3%), digital appliance (19.9%), mobile communication (18.7%), digital media (9.1%), and other business (6.7%).

The company's business is also geographically diversified, with the largest geographic segment, Europe, accounting for 22% of the total revenues in FY2007. Other geographic divisions includes North America, Domestic (Korea), China, Asia, Central and South America, and others accounted for 21.8%, 19.4%, 18.5%, 11.6%, 6.6% and 0.1% of total revenues, respectively.

A diverse revenue base enables the company to take advantage of opportunities within specific markets and geographies, and at the same time cushions it from segment specific setbacks.

Strong research and development capabilities
LGE has strong research and development (R&D) capabilities. LGE is committed to invest in R&D to create products with the latest technology and style. LGE operates 38 research labs throughout the world. The company's strong focus on R&D has enabled it to come out with innovative products. In 2005, the...
tracking img