AN INTRODUCTION AND COMPANY BACKGROUND LOOK AT LG ELECTRONICS LTD Consumer electronics are irresistible, there is nothing quite fascinating than to see someone use an electronic gadget for the first time. There is absolutely no question that consumer technology sparks imagination like nothing else. The Consumer-Electronics industry is the world of entertainment, communication and office products. Currently, the global consumer electronics industry is dominated by the South Korean, Japanese and American companies. One of these South Korean companies is LG Electronics Inc. Originally being established in 1958, LG Group is the merger of two Korean companies, Lucky and GoldStar, hence the acronym LG. Its current slogan, “Life’s Good” is the bacronym. LG Electronics is the flagship of LG Group, one of the world’s largest electronics conglomerate. The company is the world’s second largest manufacturer of television sets and third largest producer of mobile phones. Being its headquarters in Seoul, South Korea, LG currently employees 95,000 people worldwide with 75 subsidiary companies globally. The main area for production division lies in mobile communication, digital appliances, digital display and digital media. In terms of distribution networks and worldwide sales, LG stands highest in the consumer electronics industry. Being a good control over the white goods market, LG has the highest market share in the home appliances. The company’s desire to create a happier, better life has always surrounded its history. It has unveiled many new products, applied new technology in the form of mobile devices and digital television in the 21st century and continues to reinforce its status as a global company.
A BRIEF LIGHT INTO CONSUMER ELECTRONIC INDUSTRY:
From the early 1900’s till late 1980’s and 90’s, consumer electronics, computers, and telecommunications have developed as separate industries. Then came the era of digitalization and it changed the rules of the market by knocking down the walls between and making these industries one as the Consumer electronics industry. Now the consumer electronics market is an industry of $2 trillion. We can segment the consumer electronic industry into entertainment, productivity and communication. The growth opportunities for this industry include mobile devices, personal era, networks and designing smart homes. There exist many investment opportunities in this industry. The convergence of the three separate industries into one is brewing up the perfect storm. And as it was quoted, “where there’s chaos, there’s opportunity. On November 4, 1959, the Kookje Daily News, one of the most influential newspapers in Korea, published the story of the first Korean-made radio developed and manufactured by LG Electronics (the company was then known as Goldstar). By introducing all the different kinds of appliances produced by LG, the newspaper projected that “In the near future, we will be using these devices in our daily lives." In June 1959, LG Electronics embarked on an ambitious project - the first-ever Korean-made radio. Th company’s lack of experience made many industry observers to doubt the company’s success, aside fro the fact that the task itself was a historical challenge. The local production of component parts was also problematic. Nevertheless, LG Electronics succeeded in producing component parts in local regions, such a switches, sashes, and transformers. Finally, the first domestic radio (Model Name: A-501) in Korea came of the assembly line in November, only five months after the project started. A-501 marked a new era in the history of Korean electronics industry, as more than 60% of the product was made with locally produced parts. The development of the first domestically produced radio clearly shows the entrepreneurship of LG Electronics. The company steadfastly upheld its pioneering spirit and willingness to take on challenges to overcome the hardships it faced. In...
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