LG company history
Over the last decade or so LG have built a reputation for producing good quality consumer electronics at the lower end of the price spectrum. The company is a well established one in Korea but they have started to move overseas in order to expand their market. The history of the company indicates that they will be very successful in doing just that.
LG was founded in 1958 as the Goldstar a company in Korea that produced a variety of different products like radios, televisions, refrigerators and washing machines. Goldstar would merge with a company called Lucky which was where the name comes from. For many years consumer electronics products where sold under the name of Goldstar while household appliances were sold under the name of Lucky. The change in the name occurred after the company added Zenith to their stable in nineties. It was at this point that the company began to expand outside of Korea and begin to compete on the global market.
For most of the history of the company LG had focused on producing products for the Korean market. However it was clear by the nineties that the only way to stay ahead of the competition was to expand and become a global corporation. The acquisition of Zenith went a long way towards making this happen. The company also decided that they were going to focus heavily on consumer electronics and reduce the production of home appliances. In order to do this they would have to invest heavily in the research and development of new and better products.
One of the areas that LG chose to focus on was mobile phones. They were the first company to offer a digital handset and this put them in a strong position in the global market. In order to take advantage of it they did what Asian companies attempting to go global had been doing for years. They started out by focusing on the low end of the market. The idea was that if they could dominate the low end of the market by offering a good product at a low price over time they would be able to improve the product and command a higher price. This was the model that the Japanese car makers had used and it is the one that LG is attempting to follow.
LG quickly discovered that there was a huge market for their low cost, high quality electronics and the business boomed. They have developed a reputation for producing good products at low prices. This is exactly where they want to be and it puts them in a good position to move into the higher end of the market. The plan is to do this by investing heavily in research and development so that they can be the best mobile phone makers in the business.