LG Affirms Global Position, The CEO of LG has recently unveiled the strategy to achieve the “Vision 2030” goal. In this vision, “breaking limits” has been chosen as the keyword for the management policy in 2024. LG is pushing investments and enhancing competitive capabilities.
LG identifies three crucial turning points to shape business operations and improve customer experience, including electrification, serviceification, and digitization. Specifically, LG will allocate around 8 billion USD (double the current amount) to research and development (R&D) and other key areas to strengthen and increase competitiveness in the future.
In 2024, core business sectors with high growth rates and profits will receive larger investments, including B2B operations, automotive components, HVAC (Heating, Ventilating and Air Conditioning) systems, integrated home appliances, and digital displays using the webOS platform.
The webOS smart TV platform offers users a diverse range of entertainment from movies, music, sports to games.
One of LG’s major strategies is to focus on investing in the development of automotive components, providing electric vehicle charging equipment, and robots, in response to the future trend of electric transportation. According to the plan, LG will invest over 40 billion USD by 2030 to achieve strong growth in this area.
Additionally, starting in 2024, LG actively seeks external growth opportunities such as mergers and acquisitions, partnerships, alongside the strategy of promoting internal growth.
The CEO of LG shares that the company aims to achieve “777”: an average growth rate and profit margin of 7% or more; Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) at the number 7.
LG promotes digital transformation and the application of artificial intelligence.
The CEO of the conglomerate asserts that through the digital transformation process, LG is committed to creating F.U.N (First, Unique, and Novel) experiences. LG’s digital transformation efforts not only focus on improving the customer experience but also enhance the efficiency of the value chain, from purchasing and manufacturing to delivery and sales. In 2023, through these efforts, LG increased productivity and efficiency to over 240 million USD.
LG is also operating a brain technology center, conducting robust R&D programs to enhance competitive capabilities and explore new core technologies. This center focuses on eight areas: software, on-chip systems, artificial intelligence, robotics, materials and components, standard technologies, new computing generations, and cloud data.
In the digital health care sector, LG is expanding its remote healthcare business through collaborations with Amwell and is also considering providing services in areas such as prevention, diagnosis, post-surgery management, and recovery.
For the promising virtual reality sector, LG is preparing to commercialize Mixed Reality (MR) devices. At the end of 2023, the company established an XReality business unit and continues to collaborate with other technology partners to provide augmented reality solutions.
The development of future transportation is also a category of investment evaluated to enhance LG’s competitiveness against other industry giants. LG’s representative mentions that the company’s definition of future transportation revolves around three themes: Transformable, Explorable, and Relaxable.
Specifically, LG aims to transform transportation into a personal living space or workplace, offering a transparent and flexible experience during users’ journeys. At the CES 2024 consumer electronics show, LG introduced this concept named Alpha-able. Alpha-able utilizes advanced display technologies, including a rollable and flexible screen, along with unique solutions and technologies from LG, providing transformative experiences tailored to passengers’ needs.
At this year’s CES, LG was recognized and honored with over 200 awards for innovations and technologies across home appliances, home entertainment, and B2B categories.
As a global leader in OLED technology, LG continues to dominate at CES, bringing home top awards and accolades for the latest OLED TV models, including the LG SIGNATURE OLED T; LG OLED evo M4, G4, and C4. Notably, the LG SIGNATURE OLED T – the world’s first 4K wireless transparent TV, won the “Best Innovation” award.
LG has introduced users to new solutions and ideas related to cutting-edge technology.
With the philosophy of “Life’s Good” that the company is committed to realizing, a series of activities from communication, marketing to sustainable development (ESG), and community activities (CSR) will be launched from the beginning of this year. Alongside the brand identity change in 2023 towards a more optimistic, youthful, and dynamic direction, LG aims to reach a broader audience, helping them establish a more beautiful life every day.
