LG Electronics unveiled its comprehensive 2025 strategy focused on enhancing global market competitiveness through subscription services and technological innovation. CEO William Cho announced the strategic initiative during a press conference in Las Vegas on January 8, 2025, marking a significant shift in the company’s business approach.
The technology giant’s new strategy emerges amid challenging global market conditions, with LG demonstrating remarkable resilience through its subscription service business.
In 2024, the company’s subscription revenue surged by over 75 percent year-over-year, exceeding its initial target of KRW 1.8 trillion to approach KRW 2 trillion. This success has prompted LG to set an ambitious goal of tripling this figure by 2030.
“Amidst unprecedented market uncertainties and a shifting competitive landscape, we require a fundamentally different level of strategies and precise execution,” stated CEO William Cho, emphasizing the company’s commitment to innovative business models despite challenging market conditions.
This strategic pivot aligns with LG’s broader Future Vision 2030 initiative, which aims to transform the company into a comprehensive smart life solutions provider.
The subscription-based service model represents a significant departure from traditional price-driven competition. This approach allows customers to use products for their preferred duration while receiving optimized care services, fostering stronger customer relationships and generating steady revenue streams.
LG is expanding these services to new markets, including India, Singapore, and Hong Kong, following successful implementations in Malaysia, Thailand, and Taiwan.
In response to intensifying global competition, LG is strengthening its structural competitiveness through enhanced Quality, Cost, and Delivery metrics. The company is revamping its research and development portfolio, with over 75 percent of advanced R&D efforts now focused on technologies aligned with mid- to long-term strategies.
LG’s “3B” strategy – Build, Borrow, and Buy – underlies its technological advancement approach. This framework encompasses internal capability development, external expertise leveraging, and strategic technology acquisition. The company is actively forming partnerships with global tech leaders, promising startups, and academic institutions to maintain technological leadership.
The webOS-based advertising and content business represents another key growth driver in LG’s strategy. This platform diversification demonstrates the company’s ability to adapt to evolving market demands while creating new revenue streams. Despite ongoing global market recovery delays and geopolitical risks, LG maintains its focus on delivering differentiated customer value.
Looking ahead, LG’s 2025 strategy positions the company at the forefront of technological innovation and customer-centric solutions. The emphasis on subscription services, coupled with strategic R&D initiatives, creates a robust foundation for sustainable growth in an increasingly competitive global market.
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