LG CNS is one of the biggest IT service companies in Korea, but it wants to expand its business area abroadby getting M&A opportunities, reinforcing overseas operations and hiring excellent foreigners.
First of all, it designates an unknown foreigner as the president of its subsidary "Ucess Partners".President Shin Jae Chul wants to know how to sell its good things in other country by understanding theirculture and language.
It has grown as a big company same as Samsung SDS because they have provided corporate computer networks withtheir parent's group(Samsung, LG) subsidiaries so about one third of its revenue(2.26 trillion won) is from LG group.
It can get a steady sales from the parent's group but it is very important for it to pioneer the new business areaas the domestic market have become too concentrated.
Its competitor Samsung SDS last year contracted with European powerhouse Capgemeni, POSDATA started to develop wireless Internet equipment and devices.
However, President Shin would like to apporach the foreign market, such as India, China, Europe, the US, Japan, andIndonesia, as a conversaion. Especially, he is interested in Silicon Valley.
Through these process, he wants to let his company be a global enterprise even though it is difficult, but the Korean market has reached its limit obviously.
I think LG CNS's strategy is very desirable.
First, its appointment of "Ucess Partners" is very exceptional. Though it tried to designate a person very aware oftheir own culture, many Koreans did't accept the foreigner is their resident. This is an strong expression of the owner's(President Shin) idea. It can never get the foreign market without some inconvenience or devotion.
Second, it uses communication channel in establishing the branch. Most of the Koreans tend to just enter the foreign market and then they fail to their business specailly in service sector
whereas many manufacturers succeed in the same foreign market. The reason is in lack of the knowledge & understanding of overseas countries. It is able to slove the problem of misunderstanding of the foreign market.
There is a common point of upper two things; that is the thing other people will not try about them. Most of us long for comfort, ease, and convenience, but it gave up these thing. And it chose the difficult way so we need to clap our hands.
An owner's innovative thought can save a company from a panic while an owner's stupid one can perish a company from a boom. President Shin's novel strategy will let LG CNS be the more company than yesterday and today.
Student ID# : 20300576 Name : Cho Kyung Chan
[Source: The Korean Times]
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