LG 2000 Annual Report Download - page 10

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The Merger
The merger with LG Information & Communications presented LGE with a new challenge. However, the
move was part of LGE's plan to become a major player in the digital world through the development of
home and mobile networks. LGE's home network operations use information technology and applied
multimedia technology for the development of digital TVs, while its mobile network operations utilize IMT
2000 technology.
Reorganization
In 2001, LGE reorganized into five separate companies to create a corporate structure that is paralleled with
the "Digital LG" idea. The five companies are: Digital Display & Media, Digital Appliance, Digital
Handset, Digital System and Digital Network. The existing Digital Devices Company is being separated to
form a CRT-producing joint venture with Philips Electronics in 2001.
Strengthening its global operations and upgrading its business lines, LGE is directing its resources towards
the development of value-added products and areas with high growth potential. LGE is continuing to
increase the portion of high value-added products in its product line, such as flat cathode ray tubes, large-
sized refrigerators, high-end air conditioners, compact disc rewriters, and DVD-ROM drives.
While strengthening its fundamentals, LGE divested from several marginal businesses including its office
automation products. LGE also stopped manufacturing desktop personal computers and sold off its casting
& molding business in the form of an employee buy-out. In addition, production was relocated overseas for
several of its lower-tech electronic products. As well, LGE's CRT business will be separated in 2001.
Global Partnership
To enhance its global competitiveness, LGE continues to forge strategic partnerships with major players
including Intel, Microsoft, Sony, Philips and Hitachi. Building an "Infotainment" platform that integrates
consumer electronics and information products, LGE strives to deliver maximum value to its customers.
3LGE Strategy
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