LG moves to stem tide of sinking profit

LG Electronics has unveiled a number of strategies tailored towards addressing its lackluster performance in the first quarter of 2016 which saw a profit decline, despite an increase in sales.

Despite quarter-on-quarter and year -on year increase in sales by 14% and 55% respectively, LG recorded a loss in Q1 2016, due to the inclined Research and Development investment for Infotainment and electric vehicle components

LG corp. as a holding company engages in the management of subsidiary companies. It operates through its subsidiaries which includes; LG electronics, LGchem, LG uplus, LG CNS,SERVEONE, LGsiltron LUSEM, LG solar energy and LG sports.

The first strategy is that the LGE will launch ‘LG Signature’ in the developed regions in order to reinforce the position in the premium market. For the emerging market, LGE will run profitable business by efficiently operating the resources as well as continuously reducing the cost due to the high growth in Car Infotainment business.

Another strategy is by leveraging digital technology to meet the need for innovations and products that will help consumers experience an elevated standard of living.

Also, LG is devoting a large aspect of their Research and Development to churning out revolutionary products that make for intelligent urbanism, in order to accelerate sales, secure additional customers and enhance competitiveness.
LG envisages a situation where the quality of life will improve remarkably and give rise to solutions such as thinQhub aimed at solving it by playing the role of a gateway to the home’s smart appliance.

Measures are taken by LG to address today and tomorrow’s biggest environmental challenges. One of the ways of doing this is through the therma v line with the innovative technology of extracting heat from the surrounding air to minimize consumption of power thereby reducing bills drastically and making the product more affordable for consumers.

The LG also promises appliances that will likely dominate the future and also boast of features such as doors that can be opened automatically when you approach. The appliance will be more effective and quieter .All these features can be found in LG signature.

Availability of credentials to back up LG’s electronics as the world’s leading manufacturer of front-washing machine has been made. This would be made possible by following the trend design. LG has also crafted its signature line up to be absent of non essential features.

 

JOY USHIE