Lg Strength Essay

689 Words Jan 30th, 2009 3 Pages
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.

Diversified operations
LGE has diversified operations. The company manufactures a wide range of products ranging from
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This achievement has defied conventional time and mobility limits of TVs. Other advances in 2005 include the slim phone, terrestrial DMB-enabled PDAs and steam-powered drum washing machines.

Similarly in 2006, LGE introduced the world's first 60-inch single scan PDP module, the world's highest performance LCD monitor, the world's largest PDP TV at 102-inch and the world's first player for both Blu-ray and HD-DVD. It also launched the world's first MP3 player with terrestrial DMB and the World Phone for 82 countries in 2006. Further, in 2007, LGE in collaboration with Prada, one of the leading brands in the luxury goods industry, introduced, PRADA Phone (KE850) the world’s first complete touch screen phone.

The company incurred research and development costs of KRW1, 678 billion (approximately $1.8 billion) in FY2007. Its achievements in R&D and design have made LGE one of the leading players in CDMA handsets, optical storage, DVD players, residential air conditioners, plasma panels and LCD displays and provides LGE an edge in the market over its competitors.

Strategic alliances
The company has strong alliances with some of the well known companies of the world. Some of its business alliances include 3M, DuPont, Best Buy, Nortel, General Electrical, Toyota, Matsushita, Phillips and Microsoft. In 2007, the company formed an alliance with two of the world's largest internet brands including Yahoo

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