The Road Ahead

• Growth associated with the Blue Ocean initiative will not be accomplished
in just one to three years but its multi pronged effort reinforce our position
among the top three in the electronic industry.
• LG Electronic is low cost products faced competition not only from the
home based Samsung but also from Japanese manufacturers.
• The CEO of the LG company had admitted to make the company’s image as
a premium brand in every part of the world.
• The company diversified operations had also been suffering low
profitability.
• Handset division LG Electronic generated 3.1 US cent of operating profit in
2005 as compared with 5.7 US cent in2004.
• Samsung had increased its operating margins in handset with 20%
and Nokia averaged of 23% in 2005.
• LG Electronics are faced a challenges to perform well in market like
North America the company had grew only 0.4% where as in Asian
market it decreased by 13% in 2005.