“LG Display has been at the forefront of introducing new and more sophisticated products and technologies. This has been a result of the brilliance of our employees, the seamless contributions of our partner companies and the support of our customers and investors,” said Kwon Young-soo, president & CEO of LG Display, a leading supplier of TFT-LCDs for monitors, notebook computers and other applications.
Concurrently serving as chairman of the Korea Display Industry Association (KDIA), Kwon also released a message in such capacity, saying, “High-tech display devices have become indispensable in almost every aspect of our lives throughout the world. LCD, PDP, OLED and flexible displays feature in mobile phones, notebook PCs, TVs, digital signboards and e-books.” LG Display and its CEO Kwon, who is also KDIA chairman, are attracting public attention to their roles in the industry, given that the 9th International Meeting on Information Display (IMID 2009) is held from October 12 to 16 at the KINTEX convention and exhibition center in Ilsan, Gyeonggi Province.
LG Display has stunned the industry continuously by continually putting forth outstanding performances quarter to quarter, and year to year. It reported record quarterly sales, earned operating surplus profits and topped the list of worldwide LCD panel makers in terms of operating profits – during the second quarter of this year. It also accounted for the lion's share of the large-size LCD panel market during the first half of this year. This outstanding work was done by LG Display despite depressed consumer sentiment around the world in the wake of the financial crisis that began in the United States late last year. Those in the industry are now turning their eyes to the company to learn how it could achieve such a success.
R&D Strategy for Customer Value
Based on an R&D strategy to realize customer value, LG Display is focusing on developing less power consuming and environmentally-friendly products that can win end-consumers’ trust. The company is introducing display products made with super-slim design and high-definition technologies, which can best suit demand of the digital convergence. It possesses superior technology also in the field of e-paper, a less power consuming and eco-friendly display product.
Especially, LG Display plans to mass-produce OLEDs for both small-sized displays and medium and large-sized products such as notebooks and TVs. It is poised to lead the future display market by introducing flexible and transparent OLEDs. LG Display has already won global recognition for its technology in next-generation displays, such as AMOLED and flexible displays, and in eco-friendly technology. In June this year, LG Display announced a plan to concentrate its R&D efforts on developing thin-film solar cells as a key project.
Customer-Oriented Marketing
In July 2008, LG Display revamped its business operating system in order to enhance customer value. Its CEO has since been taking part in its reach-out program by holding meetings with potential buyers overseas.
Using its production and sales bases in 18 regions around the world, LG Display is dominating the market, while maintaining its top position in terms of customer satisfaction in quality, technology, logistics services, and transaction terms and conditions.
In an aggressive effort to make inroads into overseas markets, LG Display has been building production bases in China and Poland. For the Chinese market, the company built module plants in Nanjing and Guangzhou in 2003 and 2007, respectively. For the European market, it built a similar plant in Wrocław, Poland in 2007.
Production Competitiveness Based on Aggressive Investment
With the growth of the LCD monitor market, LCD size has increased rapidly. As a result, LCD production facilities have become larger and investment has been expanded accordingly. In a nutshell, timely investment in production facilities has emerged as a very important issue.
Despite the worldwide recession, LG Display invested W1.3 trillion (US$1.1 billion) in its plant in Gumi, North Gyeongsang Province in April this year to build an additional sixth-generation production line in preparation for advancing into the premium IT LCD market. In May, it dedicated an eighth-generation plant with an investment of about W3.1 trillion (US$2.7 billion) in Paju, Gyeonggi Province, and began production to meet demand for 50-inch TVs.
Through such an aggressive investment, LG Display is further widening the competitiveness gap with Japanese and Taiwanese LCD makers. With such an aggressive facility investment, the company is securing superior competitiveness and making inroads into the high value-added LCD market.
Confidence in IPS Technology
There are roughly two kinds of technology for TFT-LCD products. Based on its confidence in the superiority of its own IPS technology, LG Display is trying to put into practice a new paradigm: “panel technologies can have direct impact on consumers’ purchase of TVs.” Although it is a B2B enterprise, LG Display is making the most of marketing strategies previously reserved for B2C businesses.
Meanwhile, LG Display recently won second prize among a total of 77 competing companies in the durable consumer goods division of the China Marketing Award, which was organized jointly by The Economic Observer of China and the Hongkong Management Association. This prize for the company carries great significance in that its B2B marketing strategies won widespread global acclaim for its success in enhancing Chinese consumers’ recognition and their purchase decisions concerning its products.
Currently, LG Display is publicizing the superiority of its IPS technology and winning the hearts of consumers in new economies such as BICs – Brazil, India and China – based on localized strategies.
