LG Boston Consulting Group Matrix

LG is strategically shifting its focus towards high-growth business-to-business (B2B) sectors, notably heating, ventilation, and air conditioning (HVAC) systems and commercial displays. By 2025, LG anticipates its B2B sales to surpass KRW 20 trillion, which translates to roughly $14.6 billion USD.

The Eco Solution (ES) business, which prominently features HVAC, has been a significant contributor to LG's revenue and profitability growth. This segment is actively integrating proprietary technologies and artificial intelligence (AI) engines, solidifying its position as a fundamental component of LG's expanding business portfolio.

LG's OLED televisions continue to dominate the premium market, holding over 52% global market share in 2024, a position maintained for 12 consecutive years. This strong leadership in a rapidly expanding high-value segment, projected to see OLEDs capture over 50% by 2025, firmly establishes them as Stars.

The Vehicle Component Solutions (VS) business is another significant Star, achieving its strongest quarterly revenue and profit in Q1 2025, bolstered by a KRW 100 trillion order backlog. This growth is driven by a focus on premium infotainment systems and operational efficiencies.

LG's webOS advertising and content services are also Stars, becoming a key revenue driver in 2024. Monetizing over 200 million smart TVs globally, this high-margin segment shows continued expansion potential through 2025.

LG Chem's battery materials division is a strategic Star, with a 6 trillion KRW investment by 2025 to lead the global market. This is supported by LG Energy Solution's strong position in the EV battery sector and recovering battery material sales.

While LG's OLED TV technology shines as a star product, its traditional LCD TV business remains a significant contributor to the company's overall TV shipments and global market revenue. In 2024, the global LCD TV market, though mature, still commanded a substantial share, and LG maintained a strong presence within it.

Despite lower growth rates compared to the burgeoning OLED segment, the LCD TV line represents a stable, high-market-share category for LG. This consistent revenue generation from a mature product line provides crucial financial support for LG's investments in newer technologies and other business areas, acting as a reliable cash generator.

Cash cows represent business units or products that have a high market share in a mature industry. These entities generate more cash than they consume, providing a stable and reliable income stream. LG's home appliance business, particularly its built-in appliances and core components like motors and compressors, exemplifies this. In 2023, LG's Home Appliance & Air Solution (H&A) division alone reported an operating profit of 1.4 trillion Korean won (KRW), highlighting its consistent cash-generating power.

LG Uplus's telecommunications services also function as a cash cow, benefiting from a stable market and a growing subscriber base. This segment consistently delivers substantial revenue and profit, reinforcing its role as a dependable cash generator for the conglomerate. The company's strategic expansion of its B2B infrastructure operations further solidifies this predictable cash flow.

While newer technologies emerge, LG's traditional LCD TV business continues to be a significant cash cow. Despite lower growth compared to OLED, its high market share in a mature segment ensures consistent revenue. This segment's stability provides crucial financial support for LG's investments in future innovations and other business ventures.

Certain legacy IT hardware, such as older or non-strategic monitors and laptops, likely fall into the Dogs category of the BCG Matrix. These products typically operate in mature, highly competitive markets where differentiation is difficult, leading to low profit margins. For instance, the global PC monitor market, while substantial, is characterized by intense price competition, with average selling prices for mainstream models often remaining flat or declining year-over-year.

Products or business units classified as Dogs in the BCG Matrix are characterized by low market share in slow-growing industries. These entities typically generate low profits or even losses, requiring minimal investment. Companies often consider divesting or phasing out Dog businesses to reallocate resources to more promising areas.

LG's historical smartphone division, which faced declining market share and significant losses, serves as a prime example of a Dog. Similarly, their recent exit from the EV charging market in April 2025, after failing to gain traction against competitors, also falls into this category. These situations highlight the challenges of competing in mature, highly competitive markets where differentiation is difficult.

LG's traditional LCD display segments, particularly those in the commoditized consumer market, also exhibit Dog-like characteristics. These areas face stagnant growth and intense price competition, leading to lower profit margins compared to LG's more advanced offerings like OLED. Consequently, these segments are unlikely to receive substantial investment for expansion.

LG Chem is strategically diversifying its portfolio beyond its established battery materials, identifying advanced materials (excluding battery components) as a key area for future growth. This segment encompasses a range of innovative products such as eco-friendly plastics and specialty chemicals, targeting markets with significant expansion potential.

The company has earmarked substantial investments to bolster these advanced materials initiatives. Specifically, LG Chem plans to allocate 3 trillion KRW towards new growth engines, which includes a significant portion for these advanced materials, by 2025. This investment underscores the company's commitment to capturing market share in high-potential, emerging industries.

While these advanced materials segments are still in their growth phase, they exhibit promising revenue and profit recovery, as evidenced by solid performance in Q1 2025. The strategic focus is on expanding market penetration in sectors poised for rapid development, positioning LG Chem to capitalize on future demand for sustainable and high-performance materials.

Question Marks represent business units with low market share in high-growth industries. These ventures require significant investment to increase market share and have the potential to become future stars or dogs.

LG's Primefocus Health, a new home healthcare venture, exemplifies a Question Mark. Operating in the rapidly expanding digital health sector, it has a low market share but benefits from substantial growth potential, necessitating strategic investment to capture a larger market presence.

Similarly, LG's investments in robotics and AI technologies, while in high-growth markets, currently represent Question Marks due to their nascent market share. Continued investment is key to developing these into market leaders.

LG's smart factory solutions also fit the Question Mark profile. The industrial automation market is growing rapidly, but LG's current share in this specific segment is likely low, requiring focused investment to compete and grow.