History, part 2. The formation of a global brand: LG from 1980 to 1995
Introduction
Hi, Habr! Hello, friends!
As promised, the second part of our history *.
')
* The first part can be found here :
Period 1980 - 1988: Internationalization
So, the 80s.
The Korean economy has not fully recovered after the first oil crisis of the late 70s, political and social instability reigns in the country, most analysts predict a second oil crisis, inflation beats historical records - large companies are stagnating.
Goldstar is no exception to the rule. However, the unfavorable economic background did not affect the decision of the Goldstar management on the need to enter the international market, rather the opposite. The company needed to expand the territory not only of sales, but also of the production of the product in order to ensure greater economic stability and get rid of the economic dependence on the domestic market, where Goldstar dominated in its category at that time.
The main goal is to open branches of the company in international markets (first of all - North America and Europe).
The first step is the opening of the company's first plant outside of Korea.
On July 10, 1982, the plant GoldStar America Inc. opens in Huntsville (USA), the strategic task of which is to ensure the production of color TVs - the equipment that is most expensive during transportation / export from Korea.
Following the television sets, the plant begins assembling video recorders and microwave ovens, the demand for which was extremely high in the United States.
The next step in securing a transcontinental brand for itself is the opening of a representative office in Europe.
On November 25, 1987, the Goldstar Electronics Deutschland plant (later - GoldStar Europe GmbH) opened in Worms (Germany). The main products of production at the factory, as in the United States, are color TVs. In addition to them, the production of video recorders, washing machines and small audio equipment is also starting here.
Timely and successful decisions of the company's management ensured the possibility of obtaining components from local manufacturers, which, in combination with successful international logistics, brought their own results. Goldstar succeeds in overcoming protectionism in European countries, which for a long time has prevented not only companies from Asia, but also from North America from setting up profitable production.
Later, the model for building production, procurement and logistics, which was used by Goldstar in Germany, will be taken as a model by many Asian brands, which very soon will also open their production in Europe.
With the advent of production in the United States and Germany, the company begins to rebrand in Korea, wanting to bring the main message - “GoldStar International”. This also encourages other Korean manufacturers to start their expansion abroad.
Also in the period 1980-1986. The following historical achievements of the company can be noted:
∙ 1981 - the release of the first Korean VCR, developed jointly with Hitachi, which instantly becomes the best-selling VCR of that period in Asian markets;
∙ 1983 - the creation of the first Korean design laboratory owned by a private company;
∙ 1983 - the release of the first CD player in Korea;
∙ 1984 - one of the first microwave ovens in the world and the first in Korea;
∙ 1985 - creation of a product testing laboratory.
The installation on the internationalization of the Goldstar brand and the transfer of production facilities abroad had little impact on the company's position in the native Korean market, where the position of Goldstar and Lucky was still strong.
In the late 1980s, the political situation in Korea became extremely unstable, the democratization of the country was chaotic, and social discontent reached its peak. Against these events, a conflict occurs within the company: Goldstar unions declare a strike, not only in Korea, but throughout the world, demanding structural changes in the management of the company, improving working conditions and wages of workers, etc. Because of the internal crisis, the company bears enormous damages.
In 1988-1990, the company's management conducts a complete restructuring of the business and first of all production, most of the requirements of trade unions and employees are accepted, a program is being developed to improve the working conditions of employees. Gradually, the company begins to build a new type of management, which will later be called Jeoung Do Management (we will write about this later). Thanks to these measures, the company maintains leadership in the home market and enters a phase of fierce international competition.
Ahead is the globalization of the Goldstar brand and its worldwide recognition.
Period 1990 - 1995: Globalization
In February 1990, the management of the tandem Lucky and Goldstar announced the adoption of the program "Jump into the 21st Century", which is based on the following principles:
- The main value - the client and his needs
- The most comfortable and competitive jobs for employees.
- Latest technology for reasonable money.
In parallel with the new marketing strategy, the restructuring of all business processes within the company is also being carried out.
For the first time, communication of brand principles is carried out at 360 degrees: from internal trainings to national advertising campaigns and the establishment of uniform rules of management and communication throughout the world. The Goldstar brand is becoming truly global: one quality standard, one communication, one team.
Business Lucky Goldstar continues to grow.
From the point of view of the implementation of innovative products, the period remains quite calm: TVs, household appliances, audio equipment are evolving. The main task of the company at that time is to ensure ever-growing demand by increasing production efficiency.
In 1990 (on October 30), the Russian representative office of Goldstar was opened. In the same year, the production of color television sets began in Kyrgyzstan, in less than a year and a half the volume of deliveries exceeded $ 250 million.
In 1994, a representative office was opened in Kazakhstan (Alma-Ata), where later a plant for the production of equipment was also being built.
Offices are being opened in Thailand, Great Britain, Italy, Egypt, and China.
Goldstar brand name is becoming global. Products of the company are presented worldwide in various categories: from washing machines to audio cassettes and CDs. Goldstar TV sets disperse in huge batches, in some markets they occupy leading positions in their category.
To be continued
Ahead is the total rebranding and merger of Lucky and Goldstar, the release of the first mobile phones and flat-panel TVs (LCD and Plasma), access to the TOP-5 international brands of consumer electronics and the invention of the data transfer standard on mobile 3G.
But about this in our third (and final) post about the history of the formation of LG.
Hi, Habr! Hello, friends!
As promised, the second part of our history *.
')
* The first part can be found here :
Period 1980 - 1988: Internationalization
So, the 80s.
The Korean economy has not fully recovered after the first oil crisis of the late 70s, political and social instability reigns in the country, most analysts predict a second oil crisis, inflation beats historical records - large companies are stagnating.
Goldstar is no exception to the rule. However, the unfavorable economic background did not affect the decision of the Goldstar management on the need to enter the international market, rather the opposite. The company needed to expand the territory not only of sales, but also of the production of the product in order to ensure greater economic stability and get rid of the economic dependence on the domestic market, where Goldstar dominated in its category at that time.
The main goal is to open branches of the company in international markets (first of all - North America and Europe).
The first step is the opening of the company's first plant outside of Korea.
On July 10, 1982, the plant GoldStar America Inc. opens in Huntsville (USA), the strategic task of which is to ensure the production of color TVs - the equipment that is most expensive during transportation / export from Korea.
Following the television sets, the plant begins assembling video recorders and microwave ovens, the demand for which was extremely high in the United States.
The next step in securing a transcontinental brand for itself is the opening of a representative office in Europe.
On November 25, 1987, the Goldstar Electronics Deutschland plant (later - GoldStar Europe GmbH) opened in Worms (Germany). The main products of production at the factory, as in the United States, are color TVs. In addition to them, the production of video recorders, washing machines and small audio equipment is also starting here.
Timely and successful decisions of the company's management ensured the possibility of obtaining components from local manufacturers, which, in combination with successful international logistics, brought their own results. Goldstar succeeds in overcoming protectionism in European countries, which for a long time has prevented not only companies from Asia, but also from North America from setting up profitable production.
Later, the model for building production, procurement and logistics, which was used by Goldstar in Germany, will be taken as a model by many Asian brands, which very soon will also open their production in Europe.
With the advent of production in the United States and Germany, the company begins to rebrand in Korea, wanting to bring the main message - “GoldStar International”. This also encourages other Korean manufacturers to start their expansion abroad.
Also in the period 1980-1986. The following historical achievements of the company can be noted:
∙ 1981 - the release of the first Korean VCR, developed jointly with Hitachi, which instantly becomes the best-selling VCR of that period in Asian markets;
∙ 1983 - the creation of the first Korean design laboratory owned by a private company;
∙ 1983 - the release of the first CD player in Korea;
∙ 1984 - one of the first microwave ovens in the world and the first in Korea;
∙ 1985 - creation of a product testing laboratory.
The installation on the internationalization of the Goldstar brand and the transfer of production facilities abroad had little impact on the company's position in the native Korean market, where the position of Goldstar and Lucky was still strong.
In the late 1980s, the political situation in Korea became extremely unstable, the democratization of the country was chaotic, and social discontent reached its peak. Against these events, a conflict occurs within the company: Goldstar unions declare a strike, not only in Korea, but throughout the world, demanding structural changes in the management of the company, improving working conditions and wages of workers, etc. Because of the internal crisis, the company bears enormous damages.
In 1988-1990, the company's management conducts a complete restructuring of the business and first of all production, most of the requirements of trade unions and employees are accepted, a program is being developed to improve the working conditions of employees. Gradually, the company begins to build a new type of management, which will later be called Jeoung Do Management (we will write about this later). Thanks to these measures, the company maintains leadership in the home market and enters a phase of fierce international competition.
Ahead is the globalization of the Goldstar brand and its worldwide recognition.
Period 1990 - 1995: Globalization
In February 1990, the management of the tandem Lucky and Goldstar announced the adoption of the program "Jump into the 21st Century", which is based on the following principles:
- The main value - the client and his needs
- The most comfortable and competitive jobs for employees.
- Latest technology for reasonable money.
In parallel with the new marketing strategy, the restructuring of all business processes within the company is also being carried out.
For the first time, communication of brand principles is carried out at 360 degrees: from internal trainings to national advertising campaigns and the establishment of uniform rules of management and communication throughout the world. The Goldstar brand is becoming truly global: one quality standard, one communication, one team.
Business Lucky Goldstar continues to grow.
From the point of view of the implementation of innovative products, the period remains quite calm: TVs, household appliances, audio equipment are evolving. The main task of the company at that time is to ensure ever-growing demand by increasing production efficiency.
In 1990 (on October 30), the Russian representative office of Goldstar was opened. In the same year, the production of color television sets began in Kyrgyzstan, in less than a year and a half the volume of deliveries exceeded $ 250 million.
In 1994, a representative office was opened in Kazakhstan (Alma-Ata), where later a plant for the production of equipment was also being built.
Offices are being opened in Thailand, Great Britain, Italy, Egypt, and China.
Goldstar brand name is becoming global. Products of the company are presented worldwide in various categories: from washing machines to audio cassettes and CDs. Goldstar TV sets disperse in huge batches, in some markets they occupy leading positions in their category.
To be continued
Ahead is the total rebranding and merger of Lucky and Goldstar, the release of the first mobile phones and flat-panel TVs (LCD and Plasma), access to the TOP-5 international brands of consumer electronics and the invention of the data transfer standard on mobile 3G.
But about this in our third (and final) post about the history of the formation of LG.
Source: https://habr.com/ru/post/131830/
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