LG aims for leading position in flat TVs
Amid recession, company seeks to emerge as
among the top two flat-panel makers worldwide
As the economical recession continues to influence all sectors worldwide, LG Electronics, a global leader in TV and home theatre products, has an optimistic outlook on matters. It has recently unveiled its ambitious plans to become one of the top two flat panel display makers in the world.
Despite the turmoil, the company is aiming for 16 per cent overall market share in flat panel TVs and sales of more than 21 million TVs in 2009. By category, the company plans to sell 18 million LCD TVs, giving it 15 per cent market share, and 3 million plasma TVs, for 19 per cent of the market.
LG also unveiled its vision and strategy for its newly launched Home Entertainment Company division, which will be responsible for products such as televisions, home theatre systems, disc players and home audio.
“Our goal is to offer LG products in the context of consumers’ lifestyles,” said Mr. K. W. Kim, CEO of LG Electronics Middle East and Africa Regional Company. “Our business realignment will allow us to provide a more complete and integrated home entertainment experience by creating more synergies between our TV and audio-video products.”
LCD TVs
LG revealed five key initiatives designed to help achieve its ambitious business objectives for the LCD TV business in the wake of the global economic downturn.
First, LG wants to clearly differentiate in consumers’ minds the product benefits that the company sees as driving future growth of its LCD TVs, namely its expertise in LED backlight, wireless, broadband and TruMotion 240Hz technologies. LG also plans to extend its mid- and small-sized TV line to accommodate customers with diverse preferences and needs.
- more -
- Page 2 -
“LG will pursue a two-front business strategy during the current global downturn as a way of increasing sales momentum, investing more in marketing campaigns and research and development,” said Kim. “We will strengthen our position as a top LCD TV maker, leveraging today’s business challenge as a real opportunity to grow while others take a more conservative approach.”
By reinforcing its brand identity with a new creative advertising campaign and employing diverse distribution channels from premium markets to mass merchandisers, LG’s strategy is aimed at maximising sales in the environment of a shrinking market. LG’s two-front strategy will also enable the company to widen its consumer base while still maintaining its premium status.
LG’s third key initiative is the continued expansion of its supply chain management (SCM) infrastructure. The company will also strengthen its partnership with panel maker LG Display to promptly and efficiently meet market needs and guarantee steady profits even in today’s difficult economy.
The company’s final priority for its LCD TV business is the expansion of its efforts in developing newer technologies such as OLED, 3D displays and touch screens, as well as investing in new areas, especially in the business-to-business (B2B) sector.
Plasma TVs
In plasma TVs, LG aims to strengthen its leadership by targeting increased profitability. LG plans to focus on the large-size (over 50-inch) flat panel display market where plasma TVs still occupy significant market share. The company is also increasing its focus in the business-to-business market, where plasma TV has shown strong growth potential in the commercial display category.
Following last year’s transformation of its PDP module A1 line into a solar battery production line, LG’s plasma TV and plasma module divisions will also merge in 2009 in order to eliminate costs and speed up execution, resulting in increased market share in the plasma sector.
- more -
- Page 3 -
Blu-ray leadership
For its audio-video business, LG plans to continue its Blu-ray leadership by strengthening networking features in partnership with diverse online contents providers.
LG will also focus on premium audio systems such as its Blu-ray home theatre system. At the recently held CES 2009, LG introduced its Pure HD Sound audio technology, which is available in LG’s high-end audio products. This technology, which delivers sound as vivid and real as a live performance, is made possible through the company’s collaboration with high-end audio expert, Mr. Mark Levinson.
“The merger of our digital display and media businesses into LG Home Entertainment Company will benefit consumers because it is realigning our focus from our products to what’s really important, which is how LG can make consumers’ lives better,” said Kim.
“We are confident this will become LG’s major competitive advantage in 2009, creating even more new value for our customers when times are tough and there’s less opportunity to venture outside the home for entertainment,” he added.
