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LG Electronics

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LG Electronics
LG전자
Company typePublic
KRX: 066570 LSE: LGLD
IndustryConsumer electronics
Home appliances
Telecommunications
GenreElectronics
Founded1958
HeadquartersSeoul, South Korea
Area served
Worldwide
Key people
Bon-joon Koo
(Vice Chairman and CEO)
ProductsComputer monitors
Flash memory
Televisions
Smartphones
Tablets
Mobile phones
DVD players
Blu-ray players
Home Cinema systems
Movie projectors
Laptops
CD and DVD drives
Refrigerators
Washing machines
Vacuum cleaners
Air conditioners
RevenueUS$ 46.82 billion (2011)[1]
US$ -367.3 million (2011)
Total assetsUS$ 27.27 billion (2011)
Number of employees
36,395 (2011)
ParentLG Group
Websitewww.lge.com
www.lg.com

LG Electronics (Korean: LG전자, KRX: 066570, LSE: LGLD) is a multinational electronics company headquartered in Yeouido, Seoul, South Korea. The company operates its business through four divisions: Mobile Communications, Home Entertainment, Home Appliances, and Air Conditioning & Energy Solutions. It is the world's second-largest manufacturer of television sets[2] and third-largest producer of mobile phones.[3] It is a flagship subsidiary company of LG Group, one of the world's largest conglomerates.

History

LG Best Shop in Allahabad, India

The company was originally established in 1958 as GoldStar, producing radios, TVs, refrigerators, washing machines, and air conditioners.[4] The LG Group was formed through the merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym. Before the corporate name change to LG, household products were sold under the brand name of Lucky, while electronic products were sold under the brand name of GoldStar (Hangul:금성). In January 2009 LG was able to buy the domain name LG.com, for a price reportedly to be more than $100 million, placing it among the companies who own their two letter brand's domain name.[5]

In 1994 GoldStar gained sponsorship from The 3DO Company to make the first 3DO Interactive Multiplayer. In 1995, GoldStar was renamed LG Electronics, and acquired Zenith Electronics of the United States. LG Solar Energy is a subsidiary formed in 2007 to allow LG Chem to supply polysilicon to LG Electronics for production of solar cells. In 2008, LG took its first dive into the solar-panel manufacturing pool, as it announced a preliminary deal to form a joint venture with Conergy. Under the deal, set to be completed by year's end, LG would acquire a 75 percent stake in Conergy's Frankfurt solar-panel plant.[6] LG has produced camcorders called ARTCAM and DSLRs.[7]

By 2005, LG was a Top 100 global brand, and in 2006, LG recorded a brand growth of 14%.[8] Its affiliate, LG Display, is now the world's largest plasma panel manufacturer.[9]

Operations

LG Electronics has around 75 subsidiaries worldwide. LG Electronics owns Zenith Electronics and controls 37.91 percent of LG Display.[10]

Home Entertainment

The Home Entertainment division offers Plasma TVs, LCD TVs, PDP Modules, OLED Panels, USB Memory, Flat Panel Computer Monitors, Home Theater Systems, Blu-ray Disc players, DVD Recorders, Super Multi DVD Rewriters, CD±RW, Notebook PCs, Desktop PCs, MP3 Players

The Home Entertainment division merged with the Business Solution Division in October 2010.

Mobile Communications

An LG Optimus 3D mobile phone
See also: List of LG mobile phones

The Mobile Communications division provides mobile communication terminals, personal computers and communication devices.

LG mobile devices are made for GSM networks as well as for CDMA networks worldwide. LG phones are available also in unlocked versions that can be used on any GSM network worldwide and not just for a specific carrier's network.[11]

LG sold 116.7 million mobile phones in 2010, corresponding to a market share of 8.4%.[12]

Home Appliances

The Home Appliances division provides refrigerators, washing machines, microwave ovens, cleaners, compressors, motors.

Its 2007 sales totaled KRW 11.8 trillion, accounting for 29% of the company's total revenue. The division's profit was KRW 717.1 billion. About 35% of the company's home appliance revenue comes from the North American market.[13]

Air Conditioning & Energy Solutions

The Air Conditioning & Energy Solutions division makes air conditioners and solar cells.

Products

An LG Direct Drive washing machine

LG Electronics products include computers, televisions, mobile phones, home appliances and semiconductors (DRAM, SDRAM and flash memory).

Smart TVs and apps

LG Electronics introduced their first Internet TV in 2007, originally branded as "NetCast Entertainment Access" devices. They later renamed the 2011 Internet TV's to “LG Smart TV” when more interactive television features were added, that enables the audience to receive information from the Internet while at the same time watching conventional TV programming.[14][15] LG's Magic Motion remote uses Hillcrest Labs' Freespace technology to allow users to change channels using gestures.[16]

Advertising and sonic branding

The mnemonic G♭  E♭  F♭  D♭  E♭  C♭, (MP3 file of sonic logo) was produced by Musikvergnuegen and written by Walter Werzowa in 2008. The sonic tag has been featured in commercials and devices and is recognized worldwide.[citation needed]

Sponsorships

LG Electronics sponsored the English football club Weyside Rovers (Guildford) from 2000 until 2002 and the English football club Fulham F.C until July 2010. LG also sponsor the Fremantle Football Club (an Australian Football League team), the Costa Rican football club: Liga de Alajuense, the Australian club National Rugby League team Cronulla Sharks, and the Argentinian club Boca Juniors. In Brazil, LG sponsored Sao Paulo FC from 2001 to 2009, being with the club when they were World Champions in 2005 FIFA Club World Championship.

LG is one of the leading sponsors of Cricket. It sponsors the International Cricket Council, world's governing body for cricket and other cricket tournaments like Cricket World Cup. It also sponsors ICC Awards.[17]

During the period 2001–2003 the company sponsored the snooker Grand Prix. During these years the tournament was known as the LG Cup.

LG now also sponsors London Fashion Week and the LG Arena in Birmingham.[18]

In 2008 LG became sponsors of the Extreme Sport 'FSO4 Freeze' festival[19] and in January 2009 LG became a Global Partner and Technology Partner of Formula One.[20] This electronics company is now an official supplier to Virgin Racing, as well as Lotus Racing and engine manufacturer Cosworth.[21]

In addition to this LG in cooperation with local electronics retailer BAKOND and Ministry of Education of Azerbaijan Republic is sponsor of Azerbaijan's most popular intellectual TV Show – LG Knowledge Academy. So far more than 200 000 students from all over Azerbaijan participated in LG Knowledge Academy. In 2009 after huge success organizing committee decided to start second season of game (2009–2010).

LG sponsored the LG Mobile World Cup texting competition.[22]

Environmental record

LG is listed in Greenpeace’s Guide to Greener Electronics where it ranked joint 13th (with Toshiba) out of 15 leading electronics makers in November 2011, scoring 2.8 out of 10. LG benefited from having a penalty point lifted from the previous edition (October 2010). The company was penalised for failing to meet its commitment to make products free of polyvinyl chloride (PVC) plastic and brominated flame retardants (BFRs) by the end of 2010. All of LG's mobile phones are now free from PVC and BFRs while other products such as TVs and notebooks contain PVC/BFR free parts and LGE aims to phase these substances out from TVs monitors and PCs by 2012 and household appliances by 2014.[23]

In the Guide the company scored badly on the Energy criteria, being criticized for setting a weak target for the reduction of greenhouse gas emissions and not making renewable energy part of its low carbon strategy. LG scored most points in the Sustainable Operations category with the company providing take-back for obsolete phones in 52 countries and being in the process of addressing the issue of conflict minerals. However, the guide warned that LG risks incurring a penalty point in future editions as it was still being listed as a client of Asia Pulp and Paper (APP) who have been linked to illegal logging and deforestation in Indonesia.[23]

Choice magazine, in independent tests of popular LG fridge models in 2010, found the energy consumption in two models was higher than claimed by LG. LG was aware of the problem and had offered compensation to affected customers.[24] In 2004, LG made 4A-rated water efficiency claims for numerous washing machines before they were certified. LG gave undertakings to the Australian Competition and Consumer Commission (ACCC) to provide appropriate corrective notices and upgrade and maintain its trade practices compliance program. In 2006, LG overstated energy efficiency on five of its air conditioner models and was again required to offer consumers rebates to cover the extra energy costs.[24]

See also

References

  1. ^ Forbes Global 2000
  2. ^ "Samsung, LG Boost Global TV Market Share". Retrieved 20 February 2009. [dead link]
  3. ^ "Bloomberg.com". Retrieved 23 January 2009.
  4. ^ "LG corporate history webpage". Lge.com. Retrieved 10 June 2009.
  5. ^ List of Large Corporations that own their Acronym as a Two Letter Domain
  6. ^ "LG Plots Solar Partnership With Conergy". Greentech Media. Retrieved 10 June 2009.
  7. ^ "카페정보".
  8. ^ [1][dead link]
  9. ^ "LG.com". Retrieved 10 June 2009.
  10. ^ http://stock.daum.net/item/company.daum?code=034220&type=11&nil_profile=stockprice&nil_menu=itemsubtab9
  11. ^ "Unlocked Cell Phones". Bigtimewireless.com. Retrieved 10 June 2009.
  12. ^ "Nokia, LG lose while ZTE, Apple gain Q4 2010 market share". mobileburn.com. 28 January 2011.
  13. ^ "LG Electronics sees strong home product sales despite U.S. woes". Marketwatch.com. 20 March 2008. Retrieved 10 June 2009.
  14. ^ [2]
  15. ^ http://www.lg.com/us/tv-audio-video/discoverlgtvs/smarttv/index.jsp LG Smart TV – Access the World of Entertainment using the LG Smart TV
  16. ^ Engadget.com 26 August 2010. Tim Stevens. Hillcrest Labs brings LG's Magic Motion remote to life, cheekily points out that Sony uses it, too.
  17. ^ "Commercial Partners of the International Cricket Council (ICC)". icc-cricket.yahoo.net. Retrieved 26 September 2009.
  18. ^ "London's first ever snow and music festival strengthens LG's corporate sponsorship portfolio". Prlog.org. Retrieved 10 June 2009.
  19. ^ "FSO4 Freeze, Sponsored by LG, Snowboard and Music Festival". Londonfreeze.com. Retrieved 10 June 2009.
  20. ^ "The Official Formula 1 Website". Formula1.com. 26 November 2008. Retrieved 10 June 2009.
  21. ^ LG Extends Formula 1
  22. ^ Sang-hun, Choe (27 January 2010). "Rule of Thumbs: Koreans Reign in Texting World". Seoul: New York Times. Retrieved 10 February 2010.
  23. ^ a b "Guide to Greener Electronics - Greenpeace International". Greenpeace International. Retrieved 16 November 2011.
  24. ^ a b "CHOICE exposes false energy claims by major fridge manufacturer, LG, for its GC-L197NFS". CHOICE. Retrieved 27 October 2010. {{cite web}}: Text "CHOICE" ignored (help)
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