LG CNS WANTS TO BE A GLOBAL PLAYER

By Cho Jin-seo
Staff Reporter

LG CNS said on Thursday that it will transform itself into a global player by taking 30 to 40 percent of its revenue from outside of Korea.
The business-to-business computer system consulting and service firm said it will achieve the goal by seeking M&A opportunities, reinforcing overseas operations and hiring foreign brains.
As the first step, it said a foreigner will be arriving on April 13 to head Ucess Partners, its call-center outsourcing subsidiary. The firm didn't reveal his or her name.
``We have good things to sell, but we didn't know how to sell them in other countries,'' Shin said at a press conference celebrating the firm's 21st anniversary. ``So far, the human factor has limited our growth. If somebody had won a contract from South America, I would have been distressed because we wouldn't have been able to perform the project without adequate knowledge about the culture and language.''
LG CNS is one of the two largest IT service companies in Korea, along with its archrival Samsung SDS. The two companies have become giants by taking care of corporate computer networks ― such as finance, HR, sales, procurement and logistics ― of their parent group's subsidiaries.
Such in-house IT service firms have slowly expanded to the government and other public sectors such as airports, subways, expressway toll systems, hospitals and tax systems. In case of LG CNS, about one third of its 2.26 trillion won of revenue came ``comfortably'' from LG Group companies, while the rest were made from more competitive projects outside of the group's boundary, Shin said.
The local market, however, has become almost saturated after a decade of the IT boom, and IT service firms have been turning their eyes outside Korea with different strategies, to re-ignite slowed growth.
Samsung SDS, the largest in the pack, last year signed a strategic partnership contract with European powerhouse Capgemeni. The two agreed to share the same brand in the IT consulting field, and learn from each other's experience.
POSDATA, a sister firm of steel maker POSCO, has seen bolder transformation. Its business has been mostly focused on providing IT hardware, software and maintenance services to POSCO and some other firms and public organizations. However, it began to manufacture wireless Internet equipment and devices such as Mobile WiMax, hoping this could lead to its next-generation growth engine.
LG CNS President Shin said that his firm will take a rather conservative approach. He said the firm will first use its seven foreign branches in India, China, Europe, the United States, Japan and Indonesia to boost cooperation among themselves.
The most exciting part of the collaboration is likely to come from its Silicon Valley office. Shin said that the firm has been providing IT solutions for remote healthcare systems to a ``major global firm,'' and the product will hit the market this fall when the device gets a go from the U.S. Food and Drug Administration.
``Many Korean manufacturing firms sell more than 80 percent of their goods on foreign markets, but none are doing so in the service sector,'' he said. ``But for the last two years, we have been preparing to compete on the global level. It won't be easy, but it is obvious the Korean market has reached its limit.''
from business section in koreantimes

Summary
LG CNS did earn 30 to 40 percent of revenue from outside of Korea. President of this company, Shin said, ``We have good things to sell, but we didn't know how to sell them in other countries,'' this means that if company does not know culture and character about country that it sells their products, company will be failed in competitive market. Samsung SDS, is rival company, signed a strategic partnership contract with European Capgemeni. LG CNS President Shin said that his firm will take conservative approach. The most strategic part of the cooperation is likely to come from its Silicon Valley office. But Shin thinks, “We have been preparing to compete on the global level.”

Opinion
Generally, many companies want to get profit from outside of their own countries to be global company. So, there are many business strategies that are good or not, to earn the money from foreign country. I think company wanting get the revenue from other countries should research and understand the cultures and characters about countries where they want to sell their products. A good way to research understand about foreign country is to contract with companies like Samsung SDS in there. After investigation about foreign is completed, company should choose the products specified to that country. Next step is to advertise products that company wants to sell with consideration about people’s thoughts and preference. Through these processes, the company can have the competitive power in the world market and the company will be on the global level.

20600517 Lee, yong jae

2009 hyundai Genesis revealed

January 8, 03:00am EST

After numerous leaks and even some official teasers, the worldwide debut has finally come for Hyundai's rear-wheel-drive Genesis luxury sedan, which will be on display at the Detroit auto show. The Korean automaker promises the car delivers features equal to that of a $60,000 premium sedan for a more attainable price tag of around $30,000.
"While Genesis will compete for customers with cars like Chrysler 300 and Pontiac G8, our engineering benchmarks were Mercedes E-Class, Infiniti M, and Lexus GS," said John Krafcik, vice president, product development and strategic planning, Hyundai Motor America. "Genesis provides a potent combination of performance, luxury, and value. We think it has the opportunity to be an extremely disruptive force in the large sedan and near-luxury segments."
The sedan model is the first of a potential series of Genesis vehicles from Hyundai. The company has already confirmed plans for a coupe, and there are rumors of other variants, too.
Powertrains
The car is offered with a choice of three powertrains, including 3.3-liter and 3.8-liter V6 engines, and Hyundai's all-new 4.6-liter Tau V8. Tau will produce an estimated 368 horsepower. For the V8 model, the sprint to 60 mph takes less than 6 seconds.
The V6 models also promise plenty of performance. The all-aluminum 3.3-liter and 3.8-liter DOHC V6 engines deliver an estimated 268 horsepower and 233 pound-feet of torque and an estimated 290 horsepower and 264 pound-feet of torque, respectively. Technologies include Variable Valve Timing and a Variable Intake System.
Both Genesis V6 engines use an Aisin 6-speed automatic transmission that features an overdrive lock-up torque converter for improved highway fuel economy. The V8 model has a ZF gearbox to handle the extra power. The transmission also offers manual shifting via a Shiftronic mode.
Chassis
The car boasts a 53/47 front-to-rear weight distribution, which comes fairly close to the coveted 50/50 ratio made popular by BMW. Hyundai says the car's body structure is 12 to 14 percent stiffer than a BMW 5-Series or Mercedes E-Class. Despite this, the unibody is lighter than that of either the 5er or E.
Luxury features
High-tech equipment includes: electronic stability control, XM NavTraffic, adaptive headlights, radar-based active cruise control, a 500-watt 17-speaker Lexicon audio system, and electronic active head restraints.
A leather-wrapped dash, door panels, and console lid surround the driver, while heated and cooled seats provide added comfort. The steering wheel is wrapped in engineered ultraviolet reflective leather to remain cool to the touch in extreme sunlight.
Genesis has a total of 8 ultrasonic sensors located on the front and rear bumpers.to help park in tight spaces. The car also offers a power rear sunshade, automatic electronic parking brake, proximity key and push button starter.
The car's eight airbags include dual front airbags, front and rear seat-mounted side-impact airbags, and roof-mounted side curtain airbags.



My Opinion

Hyundai starts luxury-image making with Genesis. Dacedes ago, Hyundai made cheap cars from Pony. At that time, Hyundai’s strategy was low-pricing strategy. Hyundai didn’t have enough technology and brand value to make a fancy car.
Hyundai has developed many kinds of cars, and their export has increased. Last year, Hyundai motors sold a lot of cars. A main product was the Grandeur TG. It makes Hyundai’s brand more popular. However, Grandeur was not enough to be a fancy car.
This year Hyundai dreams a new world with their new car. It is Genesis. I think Genesis is a great Korean car that I’ve ever seen, but Hyundai has cheap image yet. They need a new strategy. So, they want to make a new brand with Genesis. It’s like that Toyota changed their image using the Lexus. The new brand, Genesis will make a value for their consumers. Expensive car is a symbor of wealth. Therefore, the rich don’t want to have a hyundai car. Hewever, Genesis is different. It will be a new brand. This new brand will be a symbor of the rich like Lexus. The hyundai’s luxury-pricing strategy is ready. I expect new wave in the world motor market.

08/3/14
20300174 Nah Kilwoong/ (ngww@nate.com)

[News Focus] Budget mobile carriers face uncertain future

[News Focus] Budget mobile carriers face uncertain future
When it comes to mobile operators, Korean customers have only three choices - SK Telecom, KTF and LG Telecom.
Under government protection, the trio has dominated the mobile arena for decades, but the new Lee Myung-bak administration looks set to lower entry barriers for the market in a bid to fuel competition and price cuts.
The government plans to force incumbent carriers to lease their networks to new entrants, which would offer telecom services without the need for their own spectrum license or infrastructure. But skepticism is mounting as to whether the so-called mobile virtual network operators, or MVNOs, will be able to erode the dominance of the three established firms as the maturity of the market makes it hard for them to achieve critical mass and make profits.
The adoption of a new regulatory framework has been also delayed, fueling uncertainty.
"The local mobile market has already reached saturation, which leaves little room for new players," said Yang Jong-in, an analyst at Korea Investment and Securities.
Korea has one of the highest rates of mobile penetration in the world, with 44 million of its 50 million people subscribing to mobile services.
"It will be hard for MVNOs to be competitive unless they roll out specialized services and competitive pricing plans," he said.
The government in January 2007 submitted a revision of the communications business bill that would oblige dominant telecom firms to open up their networks to latecomers.
SK Telecom, which has a share of over 50 percent of the mobile market, and KT, with some 90 percent of the fixed-line market, would be subject to the law.
But the bill has not gained approval for over a year amid political wrangling. The bill is expected to be scrapped and possibly rewritten as the incumbent parliament will be dissolved in May.
"Our business has made little progress because the bill has not been enacted," said Park Young-hwan, CEO and president of Korea Cable Telecom.
Industry watchers said if the National Assembly submits a revision of the bill and passes it in 2008, MVNOs will be able to begin operations in 2009.
The Lee government, which came to power last month, pledged to push for MVNO services in an effort to increase competition and lower tariffs in the telecom market.
The mobile resale market has drawn keen interest from numerous companies, especially banks and retailers which have wide sales channels.
Four companies and associations have so far expressed interest - Korea Federation of Banks, Korea Cable Telecom, Onse Telecom and a consortium of small- and medium-sized telecom service resellers and retailers.
News reports said the country's first- and second-ranked conglomerates - Samsung Group and Hyundai Group - are also eyeing the resale business, which gives companies a foothold in what is a usually capital-intensive market.
"We seek to cut tariffs by 30 percent by lowering sign-up fees and basic fees. We also plan to target the niche market such as corporations, senior citizens and juveniles," said Kwon Hwang-seop, the chairman of the group of SME resellers.
Another official also said, "The alliance will reduce the enormous initial investment required to do the resale business. We also want to create synergies from the tie-up."
SK Telecom refrained from commenting on the issue, saying that the new system has not yet gained parliamentary approval.
But a spokesperson said, "We do not necessarily welcome more new players in a market with limited room for growth, but we do agree with the government's policy."
SK Telecom itself is an MVNO in the United States. Helio, a joint venture between SK Telecom and the U.S-based EarthLink Inc., targets the youth market and Korean-Americans.
Pundits said that MVNOs should carve out niche markets to compete with established firms.
For instance, Tracfone, a U.S. virtual player which has gone after Hispanic groups, has seen its market share double between 2002 and 2005, LG Economic Research Institute said.
"While existing telecom firms do business to the mass public, MVNOs can try to differentiate their services by catering to specific groups based on specialized content," the institute said in its report.
By Jin Hyun-joo (hjjin@heraldm.com)

2008.03.06
http://www.koreaherald.co.kr/

Summary &Opinion

정부의 보호정책하에 SK Telecom, KTF, LG Telecom은 십여년 동안 모바일 시장을 지배해 왔다. 하지만, 새로 출법한 이명박 정부는 통신망(네트워크)를 직접 갖고 있지 않아도 다른 회사 것을 빌려서 사용할 수 있도록 하여, 통신사들 간의 경쟁으로 인한 휴대전화 요금의 인하를 꾀할 예정이다. 그러나 이에 대해, 해외에서 MVNOs는 실패한 경우가 많고, 이미 휴대전화 시장은 포화 상태이기 때문에 새로운 기업이 시장에 진입하기 힘들 것이라는 회의적인 입장을 나타내는 사람들도 있다.
하지만 경쟁력 있는 가격과 차별화 된 상품들을 만들어 낸다면, 이명박 정부의 의도가 성공할 것이라고 생각한다. 가격 면에서는 첫째, 이미 네트워크가 구성되어 있기 때문에 새로 이 시장에 진입하는 통신사들은 초기 투자 비용을 절감할 수 있기 때문이다. 둘째, 한국은 인구 500만명 중에 440만명이 휴대전화를 사용하고 있는데, 휴대전화 요금은 비싼 편이라 휴대전화 사용자들이 이에 대한 부담이 크고 따라서 불만도도 점점 높아지고 있다. 그렇기 때문에, 요금을 인하한다면 기존 통신사의 고객들이 신생 통신사로 이동할 확률이 적지 않다. 일년여전 영상통화가 일반화 되기 시작할 때쯤, KTF는 이름을 SHOW라고 짓고 고객들에게 많은 혜택을 주었다. 그러자 SKT, LGT의 고객들이 KTF로 이동하였다.
또 휴대전화 시장을 연령대 별, 성별, 취미, 직업 별로 세분화하면 MVNOs들의 휴대전화 틈새 시장에 침입하기 쉬워질 것이다. 예를 들면, 초등학생을 대상으로 한 안전폰을 만드는 것이다. 최근 안양의 우예슬, 이혜진양의 실종 사건은 어린 아이들을 가진 맞벌이 부부들에게 유괴에 관한 경각심을 높였다. 이에 대해 통신사들은 비상시 큰 경보음을 내는 장치가 내장되어 있는 전화를 개발할 수 있다. 이때 다른 복잡한 기능과 문자 기능 등을 없애 단말기 가격과 요금을 내릴 수 있도록 한다. 또한 기존의 통신사들은 사용자가 20세 이상이 되면 정액제를 사용할 수 없게 한다. 많은 대학생들의 휴대전화 사용을 잘 조절하지 못하고 있다는 점과 대부분의 대학생의 휴대전화 사용 요금을 부모님이 부담하고 있다는 점에서 대학생을 위한 정액제를 내놓는다든지, 생리주기, 배란일등을 계산해주는 프로그램을 내장한 여성을 위한 프로그램들을 핸드폰에 추가할 수 도있다..
케이블 방송 업계의 MVNOs 참여는 케이블 방송과 휴대전화의 기술을 결합하여 쿼드러플플레이 서비스(인터넷 전화와 초고속 인터넷, 그리고 인터넷 텔레비전 서비스가 통합되는 트리플 플레이 서비스(TPS)에 추가하여 이동 전화 서비스가 결합되는 형태의 통신 서비스. 음성과 데이터, 동영상, 그리고 이동 전화가 결합된 서비스를 한 사업자의 단일 인프라를 통해 제공받음으로써 사업자와 소비자 양측에 수익성과 편리성이 향상되는 결과를 얻게 된다.)와 같은 더욱 다양한 상품들을 만들어 낼 수 있을 것이다. 또한, 케이블 방송은 지상파 방송들 보다 방송규제가 자유로워 더욱 감각적이고 자극적인 통신사 광고를 통해 소비자들의 눈길을 끌 수 있을 것이다.

20600613 Jeon, hyejin(전혜진)

POSCO GOING GLOBAL FOR TAKE OFF

POSCO Going Global for Takeoff
Confronting pressure from consolidations in the global steel market, Asia's No. 1 steel maker POSCO is aiming at quality-focused growth on the local market, while working up a more quantity-focused expansion overseas.More investments will be made here to produce improved value-added products, while the steel group will continue to seek active big-scale expansion abroad utilizing its latest technologies, say company officials.One of the initial goals is to increase the proportion of its strategic products, including auto and electrical steel sheets, by 2008.To become the world's biggest automotive steel sheet producer, POSCO opened its sixth continuous galvanizing line (CGL) at its Gwangyang Mill last year.After a 22-month-long build-up, the plant has an annual production capacity of 400,000 metric tons of steel sheets for automobiles, along with the capability of mass-producing 6.5 million metric tons of value-added steel sheets annually.Pushing up the world's fourth-largest steel maker's edge in the competitive market overseas is its latest next-generation FINEX technology that eliminates the first step in the steel-making process of sintering and coking, and allows the direct use of low-cost ore fines and coal, cutting overall plant installation and operational costs.The new method has put an end to the era of blast furnace steel manufacturing that has been responsible for 60 percent of all steel production in the world. As the old process was unable to utilize iron ore fines and soft coal to produce molten iron, the world's steel industry has been making desperate efforts to develop a way to churn out steel from iron or powder.A number of world's leading companies worldwide made attempts to commercialize technology similar to FINEX, which works around previous limitations, but have failed.Now that POSCO successfully operated commercialized FINEX plant for more than six months, it plans to actively implement the eco-friendly process, which is designed to meet increasingly strict environmental regulations, in its new projects overseas.
Overseas ExpansionThe company, led by CEO Lee Ku-taek, said in May that it will adopt its self-developed technology in the $12 billion integrated steel project in Orissa, India. It will be POSCO's first steel mill outside of Korea to use FINEX on a large scale. Although the plant is facing ongoing protests from locals, which is delaying the kick off of the initial work, POSCO says the Indian project will give a significant boost to the company's global strategy with the country's abundant natural resources and skilled workforce.Last November in China, POSCO started operating the Zhangjiagang Pohang Stainless Steel (ZPSS) mill capable of producing 600,000 tons of stainless steel and hot-rolled products annually in Jiangsu Province.This made POSCO the first foreign firm operating an integrated stainless steel mill in China, managing the entire production process from smelting iron ore to finished products, including the cold-rolled stainless plant it already operates.In Vietnam, the company began constructing in August last year a cold-rolled steel plant with an annual production capacity of 1.2 million metric tons to be completed by 2009.Additionally, a 3 million-ton hot-rolled mill will be finished by 2012.As Vietnam's economy has been enjoying an annual 8-percent growth for the past two years, the steel-demanding auto, construction and shipbuilding industries, are enjoying a boom at the same time.But because the country's supply isn't enough to meet the demand, POSCO says new mills will become a crucial provider in the region.Auto Steel SheetsAs part of its efforts to accelerate its auto steel sheets business, POSCO plans aggressive investments in related expansion.The company said in September it will invest $250 million to build an auto steel plate plant in Mexico by June 2009. The plant, to be built near the port city of Altamira, will have a production capacity of 400,000 metrics tons a year starting 2010.Following the automotive steel processing center in Puebla, Mexico capable of processing 170,000 tons of steel annually, the new CGL plant is expected to become a major supplier for carmakers operating in the area.Not only will the production feed international automakers, including GM, Toyota and Volkswagen in North and South America, but be a stable provider for Hyundai Motor operating in Brazil and Alabama.
Fuel Cell
To combat(fight) rising oil prices and global warming issue, POSCO has begun active investments in the business of fuel cell generators, which have twice the efficiency of conventional fossil fuel power plants and produce almost no pollution.Most recently, the steel maker partnered with Fuel Cell Energy to build a $131 million plant in Youngil Bay, Pohang, to produce up to 100MW of electricity starting in 2010 and generating $437 million in revenue.Company officials say the output from the plant is expected to be used by hospitals, broadcast stations, manufacturing facilities, hotels and shopping centers.In August, POSCO and Korea Electric Power Corp. (KEPCO) teamed up to develop hydrogen fuel cell generator plants. The two expect the deal will help the commercialization of fuel cell generators to gain speed.

Summary

What makes POSCO different and special in competitive market?

- What is POSCO acting to be strong in global market? FINEX plant!!!
According to this article, POSCO is focusing on quality growth on the local market, and working up a more quantity focused expansion overseas to overcome consolidations in the global steel market. Its goal is to increase the proportion of the strategic products, including auto and electrical steel sheets.
Now, POSCO is using FINEX technology that eliminates the first step in the steel making process to improve the operation efficiency and decrease time cost.
POSCO operated commercialized FINEX plant to actively implement the eco-friendly process.

- My opinion about this article
POSCO is using strategic method, FINEX, to come with pressure from the competitive environment. FINEX plant costs less to build than a blast furnace facility of the same scale. Furthermore, a 10-15% reduction through FINEX plant will be other saving strategies POSCO intends.
Many companies are using competitive ways to differentiate their products or styles of business from other companies to survive. POSCO chose the strategy, FINEX plant, because POSCO wanted more efficient making process of steel. Time cost of the process in making steel is an obstacle for steel company. Therefore, the more shorter production time will be the more better way to save the energy and money. Also, this company considered eco- problems that can be generated in the courses of the manufacture. Eco-problems including pollutants materials and water, soil, air pollution are the first homework to be solved in steel industry. However, FINEX plant is eco-friendly in that it produces less pollutants such as SOx, NOx, and carbon dioxide than traditional methods.
There are many strategies in business and economic fields. And the fundamental rule will be existed in market. But companies in the world should consider some strategies fitting in their direction they pursue. Next, companies choose the best strategies that are efficient and effective and can generate the maximum profit. To POSCO, FINEX plant is the best way to be a global company.

20600517 Lee, Yong Jae