The advantages of strategic thinking are evident in the case of LG Electronics: Rather than cost cutting, LG responded to slowing

sales at home by going Global and employing a localization strategy, Differentiated design capabilities Innovative marketing and brand strategies. LGs competitive advantage and double digit annual growth rate in Emerging market is due to its continuous innovative thinking. Strategic Action #1: Managed the Present well Strategic Action #2: Selectively Abandoned the Past Strategic Action #3: Creating the Future During a downturn, most companies/leaders are managing their competitive advantage by focusing on STRATEGIC ACTION #1 Managing the Present, which focuses on cost reductions and margin improvements. In a downturn Managing the Present will not likely provide significant competitive advantage market is commoditized by competitors, LG focused on Creating the Future, STRATEGIC ACTION #3, with a focus on innovation and transformation.