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LG. By Xiao Liang Bin Chen Nicole Bernhardt Chad Holgerson. History. was created in 1947 “ In-Hwoi Koo Chemistry Factory ” a small chemistry company manufactured some commodities “ Lucky ” : cleaning products, toothpaste, laundry detergents

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Xiao Liang

Bin Chen

Nicole Bernhardt

Chad Holgerson

  • was created in 1947

“In-Hwoi Koo Chemistry Factory”

a small chemistry company

  • manufactured some commodities
  • “Lucky” : cleaning products, toothpaste, laundry detergents
  • nongovernmental petroleum smelt factory in 1967
  • “Lucky Goldstar” in 1958

the first electronic company in Korea

  • the first radiogram and refrigerator in 1958
  • Company’s value-open up new techniques
  • In 1960s:

constructing its basic industry

built electrical wire in 1962

oil refining factory in 1967

chemical, energy sources, appliances, electronics

  • In 1970s:

insuring increase steady

enlarging in industry

producing industry with top technique

enhancing advantages in petroleum, chemical, semiconductor, finance market

  • In 1980s:

Developing globalization and top techniques

Setting up factories in America, Europe, Middle East

Persisting on accelerating products diversified

Building 18 subsidiary companies

Office building was completed in Seoul in 1987

  • In 1990s:

“Facing to new 2000”

Designing new management

Considering people first

Creating value for customers

“Youchon” petrochemistry industrial park finished in May of 1990

  • In 2000:

purchasing DECOM Company

leader of information communication industry

chemical, energy sources, electronics, communication, finance, and service

  • In 21th century:

Investing on future industries

developing new medicine of antibiotic

R&D in digital television and displays

new generation of mobile communication system

  • providing varieties creditable finance services
  • investment negotiable securities founded

in 1973

  • participated in kinds of items actively

constructs basic establishment

company analysis
Company Analysis
  • LG four basic ideas

1. The Value

2. The Promise

3. The Benefits

4. The Personalities

company analysis12
Company Analysis
  • Competitors
    • Nokia
    • Motorola
    • Sony Ericsson
    • Samsung
company analysis13
Company Analysis
  • LG is taking part in the Greenpeace International Challenge
    • Nokia, LG, Sony Ericsson
    • Dell, Apple, IBM
company analysis14
Company Analysis
  • LG
    • Mobile Communication
    • Appliances
    • Medias
    • Many more
industry history
Industry History
  • June 17, 1946—the first American mobile radiotelephone service used commercially began
  • Cellular radios on allocated frequencies
  • Number of mobile telephones and the frequencies
    • Bell Systems asked for more frequencies
    • Radio Common Carriers, which advanced faster and further than AT&T’s mobile telephony; twice as many mobile units by 1978
  • Outside the United States, developments in mobile telephony were slower
  • Many governments or PTTs did not allow public radiotelephones to be used
  • Two Exceptions:
    • Dutch National radiotelephone network
    • Swedish Telecommunications Administration’s automatic mobile telephone system
  • Cell phone can be traced back to 1945
  • First mobile radios: 460 MHz band two-way radios
  • Idea sparked enthusiasm, but hard to build cellular radios to meet expectations
  • Technology and industry grew rapidly
  • 1969:
    • commercial cellular radios used frequency reuse in small zone systems
    • Motorola’s Mark 12 IMTS phone
    • SCM Melabs’ phone built into an attaché case
The first attaché phones—called transportables or luggables—were rather large and heavy, and rarely as impressive as the one pictured here made by Spectrum Cellular Corporation, circa 1984.

A later version of the transportable/luggable, a Motorola bag phone, 1990s.

Portable Radiotelephones

  • 1982:
    • Ameritech offers AMPS; developed by AT&T
    • Motorola’s Dyna-Tac
  • 1984:
    • Korea Mobile Telecommunications Company offered AMPS in South Korea
    • Nokia and Tandy created the Tandy Mobira Corporation to sell AMPS phones in America
  • By the 1990s, 1G analog telephones were being replaced by 2G systems:
    • GSM
    • TDMA—digital AMPS IS-54/IS-136 and Motorola’s iDEN
    • CDMA
evolution of the mobile phone
Evolution of the Mobile Phone
  • Appearance of cell phones changed
    • Bulky, brick phones became sleeker andhandheld
  • Usage levels increased as a result of the growing number of cellular sites
  • 1998—3G cell phones’ groundwork laid 3GPP
    • China Communications Standards Association (China)
    • European Telecommunications Standards Institute (Europe)
    • Alliance for Telecommunications Industry Solutions (North America)
    • Association of Radio Industries and Businesses/Telecommunication Technology Committee (Japan)
    • Telecommunications Technology Association (South Korea)
  • 2000—3GPP’s Universal Mobile Telecommunications System 3G networks were put out with the incorporation of CDMA air interface
  • 2001 and 2002—all-IP Core Network, IP Multimedia Subsystems, and HSDPA added
  • 2004—3GPP included operation with Wireless LAN networks and added HSUPA, MBMS, and enhancements to IMS like PoC and GAN
future trends
Future Trends
  • Key to surviving in the cell phone industry is changing with the technology available and paying attention to what draws in customers
  • As customers become savvier about the technology in cellular phones, they start looking for the best deals
  • To keep their customers and edge, manufacturers have to stay one step ahead
future trends26
Future Trends
  • 3GPP began the framework of its LTE project
    • improve efficiency
    • lower costs
    • improve services
    • make use of new spectrum opportunities
    • better integrate with other open standards
  • Specific LTE project goals:
    • fully IP-based integrated system of systems
    • network of networks
future trends27
Future Trends
  • Standards for 4G being developed, but not set
  • Some of the objectives of groups developing 4G technology:
    • spectrally efficient systems
    • Improved data rates
    • smooth handoffs via heterogeneous networks
    • high network capacity
    • the ability to operate with current wireless standards
    • seamless connectivity
    • next generation multimedia support
apple s iphone
Apple’s iPhone
  • A cell phone that could become a forerunner to 4G phones
  • Unveiled by Apple in January 2007 at the Macworld Conference & Expo
future trends29
Future Trends
  • iPhone’s functions:
    • mobile phone
    • camera phone
    • multimedia player
    • Internet services
      • text messaging
      • web browsing
      • e-mail
      • wireless connectivity
  • Input
  • iPhone releases
global issues biological effects
Global Issues—Biological Effects
  • Suspicions of the dangers of EMFs to human health
  • Study in China at the Microwave Institute of Zhejiang Medical University:
    • visual reaction time being delayed
    • lower short-term memory test scores in several high-intensity exposure groups
    • affect the central nervous system and the immune system
  • American study yielded disturbingly similar results
biological effects
Biological Effects
  • Effects on the immune system can be linked to cancer
    • cell phone radiation can change people’s sleep rhythms
    • affects the body’s cancer-fighting capability and change the nature of the electrical and chemical signals
  • 2004—European Commission study
  • Could also contribute to Alzheimer’s
biological effects32
Biological Effects
  • Could also be a link between cell phone usage and brain tumors
  • Dr. Lennart Hardel’s study
  • Similar results were discovered by leading researchers contracted by Motorola to conduct experiments; Motorola made several attempts to silence any reports of adverse affects and manipulate the outcome
    • Dr. Ross Adey
    • Dr. Henry Lai
    • Certain radiofrequency radiation lessened the incidence of tumors in rats
global issues driving with cell phones
Global Issues—Driving with Cell Phones
  • Cell phones are dangerous the hands of drivers
  • People often do not realize how much brainpower is needed to carry on a conversation
  • Driving while talking on a cell phone impairs the driver’s abilities more than being legally drunk
  • The person on the other end cannot recognize when the driver must pay attention to the conditions
global issues chip compatibility
Global Issues—Chip Compatibility
  • Sometimes hard to find features or functions usable on all cell phones
  • Items are often calibrated to specific phones
  • A potential culprit: output speed over compatibility convenience
Main companies in the cell phone market are (2006):
  • No.1 Nokia 34.97%
  • No.2 Motorola 21.85%
  • No.3 Samsung 11.86%
  • No.4 Sony Ericsson 7.49%
  • No.5 LG 6.67%
  • It is a Finnish company
  • founded in 1865
  • headquarters are in Espoo, a neighboring city of Helsinki, Finland
  • President & CEO ---Olli Pekka Kallasvuo
  • Chairman ---Jorma Ollila
  • has 68,483 employees. (at the end of December 2006),
nokia in finland
Nokia in Finland
  • the largest company in Finland
  • is playing a significant rolein Finland’s economy.
  • known as the best brand in Finland.
Nokia is one of the world’s largestmanufacturers of

- mobile devices

- mobile network equipment, solutions and services

Nokia operates through four business divisions:
  • mobile phones,
  • multimedia,
  • enterprise solutions,
  • networks.
revenues by division42
Revenues by Division
  • mobile phones

(60.8% of the total revenues during fiscal year 2005)

  • multimedia, (17.5%)
  • enterprise solutions, (2.5%)
  • networks. (19.2%)
revenues by geography
Revenues by Geography
  • The company has sales operations in about 130 countries, spanning the

Americas, Europe, Asia Pacific, and the Middle East.

The company recorded revenues of E34,191 million during the year 2005
  • Europe, Nokia’s largest geographical market, accounted for 42% of the total revenuesin the year 2005.
  • Revenues from Europe reached E14,360.2 million in 2005
Asia Pacific 18% E6,154.4 million
  • Middle East and Africa


  • China11% E3,761 million
  • North America 8%E2,735.3 million
  • Latin America 8%E2,735.3 million
  • Cell phone market leader

occupied about the 35% of the cell phone market share

Product development capabilities

Nokia spends 3.5 billion, which is 9% of its sales revenue on research and develop new product every year

Its worldwide employees who are working on research are more than 17000

Now Nokia’s average new cell phone develops period are only 35 days

Strong revenue growth and returns

16.4% revenue increase in 2005 over 2004

return on average asset 14.4%

return on average equity 23.7%

return on investments 23.6 %

  • Weak operating performance

operating revenue went down from 16.7% in 2003 to 13.6% in 2005

Weak performance in North America

revenue from North America only accounts for 8% of its all revenues

slow increase of enterprise solutions and networks
Slow increase of enterprise solutions and networks
  • enterprise solutions segment increased slightly by only 2.6% in 2005 over 2004
  • net work segment had an only 2% growth in 2005 over 2004
  • those two segments take up over 20% of its total revenue
  • Top Competitors
    • Nokia
    • Motorola
  • LG is diverse company
  • LG is a very green company