LG 2001 Annual Report Download - page 33

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With the World Cup being
co-hosted by Korea and a
probable recovery in the IT
industry, we foresee a
positive business
environment in 2002.
2001 Review & 2002 Strategy
Due to sluggishness in the global IT industry, 2001 was an undeniably tough year for
Digital Display and Media Company. Demand led to a reduction in sales and fiercer
competition resulted in lower profitability. With the implementation of harsh restructuring
and a continued commitment to innovation, however, we were able to set a solid stage for
future growth. In the Optical Storage business, for instance, we secured our market
leadership through a joint venture with Hitachi, called HLDS (Hitachi-LG Data Storage). In
the TV and audio-visual business we have improved sales and profitability through more
efficient management of global production lines as well as the introduction of several highly
competitive new products. Despite market shrinkage in the PC business, our proven
quality helped us secure sales lines by winning OEM shipments to Compaq and IBM. Lastly,
but importantly, we laid considerable ground for future growth with Plasma Display Panels
(PDP), our new thrust technology.
2002 presents great opportunities. With the World Cup being co-hosted by Korea
and a probable recovery in the IT industry, we foresee a positive business environment for
Digital Display and Media Company. Global competition, however, is increasingly fierce
and political instabilities continue to cause financial uncertainty in world markets.
Considering these factors, we must continue to stress innovation if we are to achieve the
goal we set last year to install ourselves as a reliable “Hardware Solution Provider.” It is
essential that we concentrate our resources on capturing emerging markets related to
both Home and Mobile Networks. To achieve our long-term goals we have set the
following guidelines for 2002:
First, we will strengthen the competitive advantages of our digital products. In order to
maintain our global prominence in the industry we must stress differentiation, and increase
product diversity according to the directions of new markets. Moving up on the “value
ladder” requires a constant search for new business opportunities.
Second, we will strive to make the organization more efficient, eliminating costly
operational defects through Six Sigma activities. By making intelligent use of new talents
within the Company and streamlining operations with unsatisfactory results we can
become more focused and profitable.
Third, we will expand our global presence. In particular, we see China as a promising
area for market opportunities as well as the establishment of R&D and production centers.
With these strategies in mind, Digital Display and Media Company looks forward to
advancing the “Digital LG” ideal and enjoying continued business success.
Head Of Digital Display& Media Nam K. Woo
Digital Display & Media
LG Electronics Inc. The
43
rd Annual Report