LG Electronics Business Model Canvas: Complete BMC Analysis
The LG Electronics Business Model Canvas reveals how this Korean tech giant transformed itself by exiting smartphones in 2021 and doubling down on home appliances, OLED TVs, vehicle components, and B2B solutions. This BMC framework analysis covers LG Electronics' nine building blocks.
Value Propositions in LG Electronics' BMC
LG's Value Propositions include OLED TV technology leadership, premium smart home appliances (ThinQ AI), vehicle component solutions (infotainment, EV powertrain), and commercial display systems. This focused portfolio contrasts with the broad diversification of the Samsung Business Model Canvas and mirrors the strategic focus seen in the LG Chem Business Model Canvas sister company.
Customer Segments Analysis
LG's Customer Segments include home appliance buyers, premium TV consumers, automakers (vehicle components for Hyundai, GM), commercial/hospitality display clients, and HVAC customers. This B2B+B2C mix parallels the dual approach in the Huawei Business Model Canvas consumer and enterprise divisions.
Key Partners and Key Resources
The Key Partners include LG Chem (materials & batteries), LG Display (OLED panels), automaker OEMs (Hyundai, GM, VW), retail partners, and Qualcomm/NVIDIA (vehicle computing). Key Resources encompass OLED display IP, ThinQ AI platform, webOS smart TV ecosystem, global manufacturing (40+ plants), and 74,000+ employees. Compare this LG Group ecosystem to the SK Group Business Model Canvas conglomerate synergies.
Revenue Streams and Cost Structure
LG's Revenue Streams flow from home appliance sales (largest division), TV & display sales, vehicle component solutions (fastest growing), and B2B commercial solutions. The Cost Structure includes manufacturing, raw materials, R&D, marketing, and logistics. This hardware manufacturing model contrasts with software-driven platforms in the Tencent Business Model Canvas.
Channels and Customer Relationships
LG's Channels include LG Brand Shops, major retailers (Best Buy, Costco), online direct sales (LG.com), B2B direct sales teams, and OEM channels for vehicle solutions. Customer Relationships leverage ThinQ connected ecosystem, premium after-sales service, and extended warranty programs. This omnichannel approach mirrors the Samsung Business Model Canvas retail strategy.
Key Activities in the BMC Framework
LG's Key Activities include home appliance R&D & manufacturing, OLED TV development, vehicle infotainment & powertrain supply, commercial display solutions, and smart home ecosystem development (ThinQ, webOS). These hardware-focused activities parallel the manufacturing excellence in the POSCO Business Model Canvas industrial operations.
Comparing Electronics Business Model Canvases
Study related BMC analyses: the Samsung BMC for Korean rival, LG Chem BMC for LG Group synergies, Hyundai Motor BMC for vehicle component customer, SK Group BMC for Korean conglomerate, and Huawei BMC for consumer tech comparison. Each Business Model Canvas shows different paths in the electronics industry.