Appliance and consumer electronics maker LG Electronics announced the launch of its first Blue Ocean Management campaign. Underlying its drive to become one of the top three consumer electronics manufacturers by 2010, LG said the program incorporates the understanding that only flexible companies that adapt to lifecycle and industry changes will enjoy continued growth.

LG said the Blue Ocean Strategy focuses on strengthening business capabilities and streamlining business structure in the five arenas of products, business model, work, system and human resources.

Additionally, LG said it plans to double its sales volume, profit and shareholder benefit by 2010 with 30 percent of its sales volume and 50 percent of its profit being derived through Blue Ocean Products. According to LG, criteria of Blue Ocean Products are growth potential—based on sales performance, market leadership—based on market share, and its contribution toward profit.

"This paradigm management-style shift will not only allow LG to double revenue and generate higher profits while enhancing shareholder value." CEO S.S. Kim said. "LG will also strengthen its overall capabilities to deliver quality, premium products enhancing its offering to consumers around the world."

LG said philosophies of customer-oriented management, competitive advantage in technology and increased management efficiency are central to the initiative. Additional initiatives of the campaign include strengthening business capabilities, enhancing brand value and developing next-generation high-tech business.

While all marketing plans continue to be designed from the viewpoint of its customers, LG said it will strive to create value for consumers and the market.