LG is carrying forward a market leader dual-track system, also known as `3+2` tactic, by enhancing 3 major industries (electronic, chemical, communication) and intensely promoting 2 next generation industries (energy solution, car components).
"It has currently been really hard to grow or make profits in this global business environment without becoming the best in the industry. All LG affiliate are going to come together to increase number of best items by leading in the market and executing plans thoroughly." One of the LG’s high ranking official revealed about the system on the 5th.
Industries with much strength maintain their business control while focusing on next generation technology preemption. To build a future industry with fast growth, it is essential to secure a leadership by securing many technologies and infiltrating into the market as quickly as possible.
◇Focusing on 3 major industries (electronic, chemical, communication) and a leadership globally
LG chose electronic, chemical, and communication services as their 3 major industries. It is focusing on enhancing their competitiveness economically since they are already at the top of the market.
LG is going to strengthen and focus on display field from electronic department. LG display in LCD panels and UHD panels are respectively 21.6% and 28.1%, which are the best in the world. It also succeeded in being the first one to mass produce OLED panels for TVs, and this lead LG to take the leadership in next generation displays. Being the best as its base, their goal is to firmly grasp superiority in future technologies such as flexible, see-through display, and etc. At the end of 1990s after a big deal with semi-conductors, LG decisively came out to put forth investments into display since it chose display as its next generation industry. As a result, it became the best in display industry by investing 41 billion dollars for the span of 20 years.
Ku Bon Mu LG president took the lead in chemical research since early 1990s on electric car batteries and medium to large batteries, and made them the best in the world. Currently it is supplying its electric car batteries to around 20 businesses such as Hyundai, Kia, GM, Ford, Shanghai, and Renault. It was also successful in making a domestic LCD Polaroid, which had been monopolized by Japan. It produces the best high-value synthetic resin ABS that is used on cars and IT equipments. Henceforth, it is going to focus on securing and developing next generation materials based on LG chemical industry and LG houses.
Communication department is planning to take a leap by having LG Uplus invest in LTE. It was the first in world to service LTE in a whole country and it has the most members using its LTE in South Korea. Henceforth it joined world’s best loT alliance, G-Wave Alliance, to prepare for loT generation. It also increased global cooperation in smart home business. It is planning to take the leadership in loT generation and advance globally. Lastly, it is planning to push forward home appliances and LGinnotech’s main components.
◇Making energy and car components as catalyst for LG’s growth in next generation
LG is picking energy solution and eco-friendly car components as catalysts for making LG as a leader for future generation
It is looking for a business status as ‘lifecycle energy value chain’ through eco-friendly energy produce and total solution. LG set up a vision that it is going to change the worth of energy business to 4 billion dollars within 2-3 years when it was 2.7 billion dollars last year.
It is going to gather all LG affiliates’ abilities for the next generation. LG Electronics is in charge of sunlight modules, lighting equipments, and PCS, and it also set up a separate energy business center to strengthen its energy business.
LG chemical department is going to expand its electric car battery field as well as its ESS field, which LG made a business agreement with Siemens to strengthen it. It is planning to acquire worldwide market with next generation products: ESS that reduces electricity peak by saving midnight electricity and ESS that distributes power by saving newly made energy.
LG CNS bought Smart Grid Automatic Metering Infrastructure (AMI) group from LGuplus. It is going to take part as a main business in ‘First in worldwide Ulleungdo, building 100% eco-friendly self-reliant island’, which is going to be planned by 2020. It is also going to be active in winning contracts with overseas business.
Eco-friendly car products are important route for electric companies to enter into car industry. LG Electronics became a leader of the smart car product industry by operating vehicle component industry since 2013. They became successful by becoming the only one to supply GM with 4G LTE communication modules, inventing stereo camera system of Benz and autonomous car, and supplying Google’s autonomous car with battery pack. LG Display is going to increase its supply of Control Information System (CID) and Cluster to major car industries. It is possible to become number one industry for car display within 2 years by doing so. LG Innotech is going to increase its business by its car motor and sensors, car modules, wireless communication modules, and LED. Its goal is to secure a new market in car business and not just in electronics business.
Senior Reporter Kim,SeungKyu | seung@etnews.com