Lg Electronics

Introduction.

The main goal with this report is to analyze LG electronics mobile division. But to get a better understanding of the mobile division the report starts with a presentation of the LG corp. and its business.

Brief history

LG was founded in 1947 by chair man Hwoi Koo but the company’s name was Lak Hui Chemical industrial Corp. today known as LG Chemicals. In 1958 the company Goldstar Co. was founded and is today known as LG electronics. LG Corp. has grown to become a huge corporation with sales around 142 trillion won in 2011. About 70% of their annual sales made overseas. Today LG have over 210 000 employees all around the world, 120 000 of them being stationed in Korea.

Since the start in 1947 the company have done a lot of organizational restructuring for example the company have gone from trying to achieve highest volume to the lowest cost to a company that tries to create high-value added products. This organizational restructuring have been a most for the company to be able to compete against a growing competition from China. By focusing on create a higher value of their products LG manage to keep distance to Chinese competitors that are very successful when it comes to economics of scales but less successful when it comes to quality.

The organizational structure

Today LG focusing on 3 different business sections which is Electronics, Chemical and Telecommunication & Services. Every business section contains of several different companies for example LG Electronics.

LG Electronics

LG Electronics is divided in to 5 different business units Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. The company’s total sales were around 55,754 billion won in 2010.

LG electronics four biggest markets is North America, Europe , Korea, South & central America. North America is their biggest market represent more than one fourth of the sales. Europe is the second with 18 % and Korea is the...