Korean business conglomerate LG has divided its businesses into four major divisions as it tries to cope with a loss of market share due to increased competition from fellow Korean rival Samsung, according to an Economic Times report.
From January 2012, a new structure will be in place with the entire business divided into four verticals – home electronics, kitchen appliances, air conditioners and mobiles and IT. Each business will now have a vertical head reporting to the managing director of LG India.
Soon Kwon, president, Southwest Asia region & MD, LG India, said there was no re-organisation. “We have aligned LG India business verticals on lines of LG Worldwide, this is a routine exercise. There are some transfers of people between branches and corporate and that is also routine reshuffling for building sales and marketing excellence.” The company didn’t exactly elaborate on the transfer of people across corporate and branches.
The company has reshuffled branch managers across India as well as increased the number of regional managers. While the company maintains business verticals in India have been aligned along the lines of LG worldwide, the re-organisation has been prompted to acquire a sharper focus on the business segments keeping in mind intense competition in consumer durables sector in India, which is also facing the double whammy of a slowdown.