LG Declares
'Blue Ocean Management'
Expects to redouble sales, profits and shareholder benefits

LG Electronics Vice Chairman S.S. Kim said on January 8 his company will embark on a strategy to redouble sales, profits and shareholder benefits.
LG Electronics Vice Chairman Kim unveiled the launch of the "Blue Ocean Management"campaign during his meeting with reports on the sideline of the 2006 International CES (Consumer Electronics Show) in Las Vegas, the United States. Underlying its drive to become a top three consumer electronics player by 2010, the program incorporates the understanding that only flexible companies that adapt to lifecycle and industry changes will enjoy continued growth.
Further, LG plans to double its sales volume, profits and shareholder benefits by 2010 with 30 percent of its sales volume and 50 percent of its profit being derived through so-called 'Blue Ocean Products.'The criteria of Blue Ocean Products are growth potential (based on sales performance), market leadership (based on market share) and its contribution toward profit.
"This paradigm management-style shift will not only allow LG to double revenues and generate higher profits while enhancing shareholder value."CEO Kim said. "LG will also strengthen its overall capabilities to deliver quality, premium products enhancing its offering to consumers around the world."Philosophies of customer-oriented management, competitive advantage in technology and increased management efficiency are central to this initiative. Additional initiatives of this campaign are strengthening business capabilities, enhancing brand value and developing next-generation high-tech business.
While all marketing plans continue to be designed from the viewpoint of its customers, LG will strive to create value for consumers and the market.
Blue ocean strategy is about the epoch-making move of strengthening business capabilities and streamlining business structure in the five arenas of products, business model, work, system and human resources. For LG, it is the significant choice for the leap to become one of the global top 3 electronics and telecommunications by 2010.
Products or services which create a mass market or significantly increase market shares, profit by offering differentiated values in view of customers. nw

LG Electronics Vice Chairman S.S. Kim