LG declares new era of 'Blue Ocean' management

The campaign is a move towards strengthening business capabilities with new products, work systems and human resources.

LG plans to double its sales volume, profit and shareholder benefit by 2010 with 30 per cent of its sales volume and 50 per cent of its profit being derived through 'Blue Ocean' products. Blue Ocean products have a larger growth potential based on sales performance, market leadership, and profit generation.

K W Kim, President, LG Electronics, Middle East and Africa Operations said: "This management style shift will allow LG Electronics to double revenue and generate higher profits while enhancing shareholder value. LG will also strengthen its overall capabilities to deliver premium products to consumers around the world. The programme is about understanding that only flexible companies that adapt to lifestyle and industry changes will enjoy continued growth."

Customer-oriented management, delivering competitive advantages with technology, and achieving increased management efficiency are central to the Blue Ocean initiative.

The programme is also aimed at strengthening business capabilities, enhancing brand values and developing next-generation high-tech business in the Middle East and Africa market.

Kim added: "All marketing plans continue to be designed from the viewpoint of customers. LG plans to invest US$2.61 billion in research and development facilities, and develop additional plasma production lines, and new business categories such as home networking, car infotainment, PC and OLED (Organic Light Emitting Diode) products, and DMB (Digital Multimedia Broadcasting) technology. LG will also continue to invest in its flagship categories like digital TV, PDP and mobile phones."

Research and development will focus on technological innovation, cost reduction of flat panel displays, and maintaining competitiveness in basic technologies for System-on-Chip (SoC) software. LG Electronics will work to secure product leadership through the timely development of premium mobile phones, such as the satellite-DMB, terrestrial-DMB, 3G and advanced multimedia phones, as digital broadcasting is converged into mobile technology.

LG Electronics' marketing strategy for 2006 will place greater emphasis on young people and women in the region. LG will target overall regional sales of US$2.7 billion, making for 20 per cent growth compared to 2005.