LG Electronics-Magna joint venture established, acquired Alfonso in the US to prepare for the future
Actively fostering a positive and creative organizational culture based on customer value
|[서울=뉴시스] Bong-Seok Kwon, CEO of LG Electronics (provided by LG Electronics)|
[서울=뉴시스] Reporter Choi Hee-jung = After LG Electronics recently announced the establishment of a joint venture with global auto parts maker Magna International (‘Magna’), it is preparing for future business that can create LG fandom.
According to LG Electronics on the 12th, President Bong-Seok Kwon said at this year’s New Year’s speech, “Let’s systematically prepare for future business that can create LG fandom based on understanding of customers.” “Do it”.
He added, “Efforts to make’change through growth, growth through change’ based on customer value must be continued.”
Earlier, during his inauguration last year, President Kwon Bong-seok emphasized, “We will secure new growth engines through proactive responses such as digital transformation in the era of rapid changes in the market environment.” “Digital transformation is the cornerstone of change and growth, that is, sustainable growth.”
Since then, LG Electronics has been discovering additional business opportunities while maintaining its product-oriented business structure. It also revealed that connecting contents and services to various hardware sold in the global market or securing new growth engines based on connected devices are representative examples of digital transformation that LG Electronics will pursue.
President Kwon emphasized, “To create unprecedented innovation, we must go beyond the’gradual growth’ of making Super X through X+α, and focus on the’disruptive change’ that makes Y through X+α.”
|[서울=뉴시스] LG Electronics announced on the 23rd that it has decided to establish a joint venture (JV) in the field of electric vehicle powertrain (power transmission system) with Magna International, the world’s third-largest auto parts maker. (Offer = LG Electronics)|
This means that an attempt should be made to boldly develop products and services from the customer’s perspective based on a segmentation strategy, away from the manufacturing industry’s perspective that focuses on standardization, commonization, and modularization.
◇LG Electronics-Magna joint venture was established, followed by acquisition of Alfonso in the U.S.
At the end of last year, LG Electronics announced that it will establish a joint venture with Magna International (hereinafter referred to as’Magna’), the world’s third-largest auto parts maker, to increase its business competitiveness and growth potential while the automobile electrification trend is rapidly progressing in the global market. did.
LG Electronics and Magna expect that the strengths of both companies will create the best synergy and contribute to the advancement of the business of the joint venture in a situation where the eco-friendly vehicle and electrification parts market is growing rapidly. The joint venture is a strategy to lead the upcoming electric vehicle era by actively utilizing LG Electronics’ outstanding manufacturing technology, Magna’s rich experience, and global customer network, as well as enhancing the competitiveness of the auto parts business for both companies.
Starting from the launch of this joint venture, LG Electronics will promote the auto parts business by dividing into three axes: VS Business Headquarters (focus on infotainment), ZKW (Lamp), and LG Magna e-Powertrain (Powertrain).
|[서울=뉴시스] LG Electronics acquires a data analysis company and lays the foundation for diversifying its TV business portfolio. According to LG Electronics on the 7th, the company invested about 80 million dollars (about 87 billion won) in TV advertisement and content data analysis startup’Alphonso Inc.’ headquartered in Silicon Valley, USA, and has more than 50% stake. Secured. (Provided = provided by LG)|
In addition, LG Electronics acquired a data analysis company earlier this year, laying the foundation for diversifying its TV business portfolio. It invested about 80 million dollars (about 87 billion won) in TV advertisement and content data analysis startup’Alphonso Inc.’ based in Silicon Valley, and secured more than 50% of the stake.
This is because LG Electronics recently decided to establish a joint venture in the electric vehicle powertrain field with the world’s third-largest auto parts company’Magna International’, and is strengthening new growth engines in the hardware field. It means a lot.
This acquisition is to expand the TV business into services, contents, and software by combining digital transformation with existing flagship businesses. LG Electronics plans to enhance its TV business portfolio, differentiate its service and content competitiveness, and secure additional growth engines in a competitive environment that continues to intensify, led by Chinese companies.
LG Electronics is preparing for the future through investments such as ▲ZKW ▲LG Magna ePowertrain in new business areas, and in its main business areas, software, such as establishing a joint corporation with Luxoft, is established to strengthen the competitiveness of automotive software modules. It is accelerating the diversification of business models to services and contents.
◇ Actively fostering a positive and creative organizational culture based on customer value
|[서울=뉴시스] Signature Kitchen Suite Nonhyeon Showroom (Provided by LG Electronics)|
At the end of last year, LG Electronics introduced the in-house venture program’LGE+VENTURE’ and selected the first runners to explore new business opportunities by utilizing the ideas, experiences, and capabilities of employees.
LG Electronics selected the final two teams after contesting and evaluating ideas in the field of products and services, including future new business, for employees. As there were more than 250 ideas proposed for LGE Adventure, there were many unusual ideas that LG Electronics had not previously done. The ideas of the two finalized teams are each about customized life care coaching services, online fitness, and so on, and propose a new way to help customers’ health management in line with the new normal.
The selected team will focus solely on the development of the assignment for the next year. LG Electronics guarantees the autonomous work of the team members and supports a separate office space, subsidies for project progress, and accelerators that serve as mentors and provide consulting to accelerate the growth of startups. If LG Electronics determines that the final product has business potential, it plans to provide an opportunity to commercialize it within the company or become independent as a startup according to the intention of the in-house venture team.
LG Electronics expects that LGE Adventure, taking its first step this time, will contribute to the formation of a positive and creative organizational culture by encouraging new initiatives by employees and promoting innovation.
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