LG to focus on green tech to beat crisis
Dubai, February 23, 2009
LG Electronics, a global leader and technology innovator in consumer electronics, has highlighted increasing R&D spend and focus on green technologies, as strategies to weather the current economic storm.
The message about turning ‘crisis into opportunity’ came from LGE’s global CEO, Yong Nam's a visit to Dubai, when he said that in order to maintain product leadership and increase market competitiveness, the company would not reduce – and may increase – its investment in R&D, marketing, branding and design.
'Every company – not just LG - has been affected negatively by the economic downturn,” said Nam, who was behind the successful turnaround of LG Telecom during the Asian Financial Crisis of 1997,' said Nam.
“The poor performance of many global companies in the last quarter of 2008 was a wake-up call that we needed to take drastic actions, not just safe ones.”
Nam went onto explain the three most important strategies.
Recession and beyond
The company has intensified its efforts to increase market share despite the volatile economic situation.
To achieve this, LG will boost its focus on investing in future growth engines such as solar power, commercial air conditioners and business (B2B) solutions, all sectors LG expects will expand and become increasingly profitable once the economy is back on track.
LG has also reorganised its business portfolio to focus on areas with longer-term growth potential, profitability and partnerships will continue to be a key element of the company’s marketing activities to elevate its brand position.
At the end of 2008, LG Electronics established a Crisis War Room (CWR) to bring together LG’s five business units, eight regional headquarters and executives to implement and manage the company’s aggressive business plan.
LG is targeting a reduction in expenses of more than $2 billion in 2009. This company-wide initiative, which includes headquarters and all 82 subsidiaries around the world, also applies to manufacturing and indirect costs.
To cement its position as a global company, LG will continue to direct significant resources toward improving standards to global organisational levels.-TradeArabia News Service
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