UNJournal Jon Lee | LG Electronics’ CEO William Cho and key company executives introduced the strategies that LG is implementing to achieve its ‘Future Vision 2030’ goal, during a press conference held for Korean media in Las Vegas, Nevada, U.S.A., on January 10.
The CEO began the proceedings by noting that LG had identified three major inflection points – electrification, servitization and digitalization – that will ultimately reshape business and the customer experience. The company aims to overcome challenges, such as persistent market and supply chain uncertainties, and accelerate growth by building a high-performance, results-oriented organization with a winning spirit.
“If 2023 was the year in which we set the direction for new changes, we will make 2024 the year in which we truly accelerate these changes,” said CEO Cho. “Future Vision 2030 is our promise to the market and to our customers, and we will strive as a company to deliver on this promise.”
Announced by the CEO last year, Future Vision 2030 is LG’s long-term goal to transform into ‘Smart Life Solution Company’ that can connect and expand the customer experience across various spaces, including home, commercial, mobility and virtual.
CEO Cho set ‘Break through Limits’ as the key phrase for, and underlying philosophy of the company’s management policy in 2024. Having already established three focus areas for future growth – a non-hardware business model, B2B expansion and the development of new businesses – LG will now make an all-out effort to further refine its portfolio.
To start with, the company will maximize the potential of its future growth engines by expanding investment based on the strategic priorities of the business. This year, the company will more than double its level of investment; putting USD 8 billion into R&D and other critical areas to strengthen competitiveness, moving forward.
High-growth and high-profit core businesses will also see larger investment in 2024.
These include B2B businesses, such as vehicle components, HVAC, built-in appliances and digital signage, as well as the webOS platform business. LG will continue to invest in new businesses, such as electric vehicle (EV) charging and robotics, and has already announced plans to invest more than USD 40 billion by 2030 to transform its portfolio for qualitative business growth.
Furthermore, beginning this year, LG will actively seek inorganic growth opportunities, such as mergers, acquisitions and partnerships, in addition to adopting strategies designed to invigorate its internal growth engines. Emphasis will also be placed on game-changing areas of technology that add customer value, such as AI and mixed reality (MR).
The CEO identified the newly established Overseas Sales and Marketing Company as a valuable asset for helping LG “break through limits.” Already playing an important role in LG’s global success, the new organization accounted for approximately two-thirds of the company’s total sales. The Overseas Sales and Marketing Company implements specialized strategies that take into consideration the unique characteristics of each region and market. Its efforts have maximized the performance of the business, worldwide, and have played a significant role in strengthening the capabilities and growth of LG’s international subsidiaries.
