...LG Electronics’ Strategic Plan Analysis Greg McMillan TM583 Strategic Management of Technology Professor Woody Wu August 18, 2011 Introduction LG Electronics Inc. founded in 1958 and headquartered in Seoul, South Korea. The company is a major producer of consumer electronics and has over 70 subsidiaries that manufacture TVs, video and audio products, appliances, refrigerators, wireless phone handsets, air-conditioners, and communications devices. LG Electronics has annual revenue of about 23.8 trillion and employs about 66,600 people. LG Electronics’ mission is to be among the top five electronics brands in the Africa and the Middle East. This vision is simple and clear: venture into new markets and win the consumers by giving what they want. Capturing new markets and providing a strategic direction for all LG Electronics activities in the Middle East and Africa is the main target (Times of Oman, 2006). On the other side, many promising markets like Algeria, Sudan, Angola and some others whose economic power is growing strong are being neglected. LG Electronics is focusing again to regain those markets. The company will use a new marketing strategy such as using power retailers instead of using traditional channels of marketing like using dealers. Traditional dealers are losing their power whereas the power retailers are gaining market share like Carrefour (Times of Oman, 2006). The company is looking to achieve a turnover of $6 billion, to increase...
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...LG IN THE INDIAN COLOUR TELEVISION MARKET INTRODUCTION Ever since its inception in India 'LG India' has made an impressive beginning and has shown commendable progress on all parameters of keeping in touch with the market. This report aims to establish the factors included in the marketing plan of LG in India (in the colour television market) that has contributed to its rise to glory. This report begins by giving the origin and background of the company. Then the company and its environment have been studied. This includes the discussion of the PEST factors and Industry Analysis (Porter's Five Forces) followed by a SWOT Analysis. The next part involves the CSFS and competitive advantages followed by a discussion of the company's strategies. The last part then includes alternative strategic app and conclusion. BACKGROUND AND ASSUMPTIONS Origin The Lucky Group (now known as LG) has its origins dating late back to January 5, 1957 when founder Chairman Hwoi Koo had invested all his personal assets in its formation with great success isn many rounds of reinvestment by the late 1950s, Mr. Koo announced his intention to get into electronics after much painstaking research and planning the Goldstar Company (now known as LG Electronics) was founded on 1.10.1958. LG Electronics India Limited After being appointed one of the official sponsors of CTV kits for the Asian Games in New Delhi - 1982, LG disappeared for the next 12 years. Then in 1995 it came together...
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...LG Electronics Company Analysis Published: 23, March 2015 In this competitive business world marketing strategies is very important .They are several multinational company run their business over the world so the multinational company must use its own marketing strategies. This analysis describe the macro environment of the organization and its future decision making process. Globally the lot of business to achieve their goal by its own marketing strategies plan. Here the study tells about the LG Electronics and its future plan in the competitive market. LG Electronics is the one of well known multinational company in this world. This company delivery innovative digital product such as entertainment, games ,home media and home appliance to customer. LG Electronics funded in 1958 as Gold Star in Korea. In 1995 its renamed as LG. Its prior product is consumer TV, radio, refrigerator ,air conditioner and washing machine. LG electronic introduce some new technology to the digital world such as the first CDMA digital handset, 60 inch plasma TV. LG electronics have good corporate culture some of these "No excuse, We not I, Fun work place". LG brand comprised of four basic element value, benefits, promise and personality. This company set the long term goal and work towards the goal. The vision of the company is Global top three in 2010. LG controls 114 local subsidiaries all over the world . The are 82000 people work for this company. LG accept as true that technological innovation...
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...STRATEGIC MARKETING PLAN FOR LG ELECTRONICS NIGERIA STRATEGIC MARKETING PLAN FOR LG ELECTRONICS NIGERIA Omoruyi Okekumata Omoruyi Okekumata TABLE OF CONTENT table of contents i EXECUTIVE SUMMARY ii II Introduction 4 III Situation Analysis 5 1.1 competition analysis 5 2.1 pest factors in lg 5 2.1.1 political factors 5 2.1.2 economic factors 5 2.1.3 social-cultural factors 5 2.1.4 technological factors 5 3.0 PORTER’S FIVE FORCES ANALYSIS OF LG ELECTRONICS 6 3.1 Rivalry among Competitive Firms 6 3.2 POTENTIAL Entrants 6 3.3 Threat of substitute products or services 7 3.4 The Bargaining power of customers (buyers) 7 3.5 The Bargaining Power of Suppliers 7 4.0 SWOT Analysis 8 4.1 Strengths: 8 4.2 weakness 8 4.3 opportunities 8 4.4 threats 9 5.0 Aims, Objectives and strategies 9 5.1 Mission/Aim 9 5.2 Marketing Objective 9 5.3 Financial Objective 10 5.4 Strategy 10 5.5 core value 10 5.6 tactics 10 5.7 control 10 6.0 segmentation, targeting and positioning strategies 11 6.1 target market 11 6.2 segmentation 11 6.2.1 segmentation from geographic 11 6.2.2 segmentation from demographic 12 6.2.3 segmentation from behaviouralistic approach 12 6.3 positioning 12 7.0 implementation 13 7.1 Product in the Marketing mix of LG 13 7.2 Price in the Marketing mix of LG 14 7.3 Price in the Marketing mix of LG 15 7.3.1 Marginal cost pricing 15 7.3.2 Geographical Pricing 16 7.4 Promotion in the Marketing mix of LG 16 8.0 appendices 16 8...
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...LG ELECTRONICS South Korean multinational corporation South Korea's second largest electronics maker and the world's third largest appliance maker Company has 75 subsidiaries worldwide Design a d manufacture te ev s o s, home appliances, and es g and a u actu e televisions, o e app a ces, a d telecommunications devices. LG Electronics owns Zenith Electronics and controls LG Displays, a joint venture with Philips Electronics By 2005, LG was a Top 100 global brand. In 2006, LG recorded a brand growth of 14% World s World’s largest plasma panel manufacturer In 2006, its net income was $226 million, on total revenues of $24.7 billion COMPANY – ITS SUBSIDIARIES • LG Display, is one of the largest manufacturer of liquid crystal displays p y • In 2006, the company's mobile phone division, LG Mobile, marketed the LG Chocolate TM phone, changing the company's i ' image of th maker of thi k 3G phones. f the k f thick h • Focuses on the design and marketing of phones such as the LG Shine and LG Prada (KE850 ( • The company was picked as 'The Design Team of the Year' by the Red Dot Design Award in 2006~2007 • Called the 'New Apple' or 'New Sony' in the industry and online communities • S Sponsor E li h Premier League club -Fulham FC. English P i L l b F lh LG ELECTRONICS - ORIGIN Established in 1958 as GoldStar, producing radios, TVs, g , g , refrigerators, washing machines, and air conditioners. Merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of...
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...LG Electronics’ is the intercontinental Company which has a range of industrialized Units and sources. The company focus the international market for his product .the political environment nothing but how the law and government taxation policy influence an organization .There is a lot of political interaction has integrated in this business and it has operated between the political and legal factors. This factor may increase the cost of factor some time it decrease the product cost. The LG electronics facing lots of problem while its production and exporting goods to the overseas. Economic Analysis: LG has a very big competitive market in world and it have constant development in their innovation in electronics equipment , secondary products, planned process of LG etc.. it have leads to sell goods to other countries . The LG contribute the world wide STOCK MARKET and money market also. The LG have well and strong economic source and it has capable of introduce some new technology to the electronic market. LG leads the electronics market with enormous technology and economic resource. The below the table shows the financial highlight of LG electronics. The sale of the company is constantly increase the last seven year it possible by the good economic status The LG has introduce the product with satisfy the customer needs as well as safer environment. The product wont harmful to the environment and people .The LG try to produce green environment that mean it reduce the emission...
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...A PROJECT ON “BRAND LG” [pic] Presented By: Gurjit Singh – 3022 Heman Makwana – 3023 G. Kalaiarasan – 3025 Kalpana Patel – 3026 Acknowledgement We would like to thank Prof Sohan Mahanty for providing us with such an important and challenging opportunity of preparing a project report on Branding which has enabled us to learn a lot about the Branding strategies, LG’s product innovations and marketing tactics for the Indian market. It is a matter of great pleasure to express our sincere gratitude and thanksgiving to our Director – Dr. Bigyan Prakash Verma. Last but not the least, we extend our sincere thanks to all the people who helped us directly or indirectly in way of ideas and valuable thoughts for making this project, a grand reality. History of LG Brand: | LG's history dates back to 1947 when Lucky Chemical Industrial Company (LCIC), the first chemical company in South Korea, was | |established. In 1958, LCIC started Goldstar Company to manufacture consumer durables. Within a year of its inception, Goldstar manufactured| |South Koreas first radio, A 501. | |In the 1960s, it started exporting radios to the US and Hong Kong and manufactured Korea's first telephone, refrigerator and black & white | |television. With the consumer durables business picking-up, LCIC changed its name to Lucky Goldstar. ...
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...Chapter 1 AN INTRODUCTION AND COMPANY BACKGROUND LOOK AT LG ELECTRONICS LTD Consumer electronics are irresistible, there is nothing quite fascinating than to see someone use an electronic gadget for the first time. There is absolutely no question that consumer technology sparks imagination like nothing else. The Consumer-Electronics industry is the world of entertainment, communication and office products. Currently, the global consumer electronics industry is dominated by the South Korean, Japanese and American companies. One of these South Korean companies is LG Electronics Inc. Originally being established in 1958, LG Group is the merger of two Korean companies, Lucky and GoldStar, hence the acronym LG. Its current slogan, “Life’s Good” is the bacronym. LG Electronics is the flagship of LG Group, one of the world’s largest electronics conglomerate. The company is the world’s second largest manufacturer of television sets and third largest producer of mobile phones. Being its headquarters in Seoul, South Korea, LG currently employees 95,000 people worldwide with 75 subsidiary companies globally. The main area for production division lies in mobile communication, digital appliances, digital display and digital media. In terms of distribution networks and worldwide sales, LG stands highest in the consumer electronics industry. Being a good control over the white goods market, LG has the highest market share in the home appliances. The company’s desire to create a happier, better...
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...Global Player in the Consumer Electronics Market: Knowledge@Wharton ( http://knowledge.wharton.upenn.edu/article.cfm?articleid=2667) LG’s Michael Ahn on Becoming a Global Player in the Consumer Electronics Market Published : January 06, 2011 in Knowledge@Wharton In 2000, executives at South Korea-based LG Electronics set the goal of becoming a top-three player globally by the close of the decade. One year early, in 2009, the company achieved its goal. Meanwhile, revenue has jumped from $5.6 billion in 2004 to more than $13 billion in 2010. Michael Ahn guided the branding effort for LG Electronics North America before stepping down as regional president and CEO last year to become a senior adviser at LG Electronics USA. In a recent conversation with Knowledge@Wharton, Ahn -- who was visiting the University of Pennsylvania to make a speech as part of the Wharton Leadership Lecture series -- named patience, consumer-targeted marketing and achieving synergy among the firm's different divisions as the factors catapulting LG Electronics from a relatively obscure maker of commodity goods to a premium global brand. An edited version of the conversation appears below. This is a single/personal use copy of Knowledge@Wharton. For multiple copies, custom reprints, e-prints, posters or plaques, please contact PARS International: reprints@parsintl.com P. (212) 221-9595 x407. Knowledge@Wharton I would love to start by talking about the consumer electronics industry. Competition in the...
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...economy – LG Electronics (LGE) is an example of one of this corporate structure. We will discuss how LG has impacted the South Korean economy as well as outline the positive and negative characteristic of chaebols and the South Korean economy. We will identify LGE’s human resources strategy, and how they deal with diversity. I will also explain one of LGE’s strategic alliance and its global objective. The Organization and the Purpose of Chaebols LG Electronics was established in 1958 as GoldStar. They produced products like radios, TV’s, refrigerators, laundry units, and air conditioners. There advanced digital expertise and technological expertise has catapulted them to become one of the industry leaders in technology. LG continues to reinforce their vision of become a global leader in digital by creating innovative products and ensuring superior customer service. The company, continues to unveiled new products, new technologies that continues to reinforce their status as one of the global leaders. LGE is s the world’s second largest manufacturer of television sets with forty-five percent of sales coming from the home electronics division of the company. Twenty-two percent of sales come from the home appliances division and twenty percent of sales come from mobile communications which they are ranked as the third-largest producer of mobile phone. LGE headquarters is located in Yeouido-dong, Seoul, South Korea. LGE’s CEO is Bon-joon Koo became Vice Chairman of LG Electronics...
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...LG PESTLE Analysis Political Aspects The political arena has a huge influence upon the regulation of the businesses, and the spending power of the consumers and other businesses. * India is politically stable which have a positive impact on their business activities in Asian sub-continent. * There is no FDI limit for retail companies operating in India which contributes to extensive competition among the existing companies and expand in different geographic areas. * EPCG (export promotional capital goods scheme)-zero duty scheme allows import of capital goods for production, pre-production and post-production. * L.G. electronics also has to comply with the standards set by environmental protection agency. * Setting of plants in tax incentive areas like greater Noida and Pune. Economic Aspects Marketers need to consider the state of a trading economy in the short and long-terms. Important economic factors are : * Inflation in India saw a slightly increase from 5.86 in 2014 to 6.32 percent in 2015. The increase in inflation is not in a higher rate so companies are safe. * The Indian economy grew 7.3 percent in the third quarter ended December 31, 2015 Growth in GDP combined with increasing disposable income of consumers with their changing lifestyles and trends in the industry will see a rise in demand for high-end segment durables, which gives LG an opportunity to expand and invest more in its manufacturing processes. * AC industry reversed...
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...LG ELECTRONICS INDIA Background Based in South Korea, LG Electronics (LGE) had a global turnover of US$ 29.9 billion in 2003. LGE has 50 affiliated companies across the globe, with 300 offices and presence in 120 countries. With over 64,000 employees, it focuses on four main businesses - Electronics and Telecommunications, Services, Finance and Chemicals. LGE has 20 R&D centres worldwide and has subsidiaries in 76 countries. Established in 1997, LG Electronics India (LGEI) is a wholly-owned subsidiary of LG Electronics, South Korea. It is one of the leading companies in consumer electronics, home appliances and computer peripherals in India. It has a turnover of almost US$ 1000 million in India. LGEI’s sales are increasing with a CAGR of 40 per cent over the past five years. LG is the market leader in various segments like colour TVs, microwave ovens, frost-free refrigerators, washing machines and air-conditioners, with market shares of 26.2 per cent, 41.2 per cent, 37.9 per cent, 34.1 per cent and 34 per cent respectively. LG Electronics India received the Occupational Health & Safety Management System OHSAS 18001:1999 certification from the British Standards Institution (BSI), India, for a systematic approach towards Occupational Health and Safety Management System. LGEI exported goods and services worth US$ 40 million in 2003. The major export markets for LGEI are the Middle East, West Africa and Central Asia. India challenges The challenges faced by LG when it entered...
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...LG Electronics India India challenges The challenges faced by LG when it entered the market in 1995 were: • Low brand awareness about LG in India. • One of the last MNCs to enter India. (Samsung, Sony & Panasonic entered in 1995 & LG in 1997.) • High import duty. • Competition from local players and other multinational companies in the consumer electronics segment • Price sensitiveness of Indian consumers. • LGEI has overcome these challenges to emerge as way, by sponsoring the 1999 World Cup, and followed it up in 2003 as well. • LG brought in four captains of the Indian cricket team to endorse its products. LG invested more than USS 8 million on advertising and marketing in this sport. • LG has differentiated its products using technology and health benefits. The CTV range has ‘Golden Eye’ technology, air-conditioners have the ‘Health Air System’ and microwave ovens have the ‘Health Wave System’. Local and efficient manufacturing to reduce cost To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi. LGEIL had already commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. This has helped LGEI to reduce costs. LGEIL is implementing a “digital manufacturing system” (DMS) as a cost-cutting innovation. This system is a follow-up to the Six Sigma exercise LGEIL had initiated earlier. Product localization Product localisation is a key strategy used...
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...leading mobile phone companies such as Samsung, LG Electronics and SonyEricsson are rushing to introduce strategic handsets, aiming to win a larger chunk in the market. In the fiery competition space, LG Electronics has introduced its first black-label (premium label) mobile phone which called Ў§ChocolateЎРfor the competition, and tried to use its new marketing strategy for spreading into a new market place that no one has took up before. This report first of all will start from over viewing LG Company and its strategy by present. Secondly will go into specifically to analyze the strategy which on launch its Ў§ChocolateЎРmodel and its competitors, and also to analyze the feasibility of its strategies through understanding its strength and weakness. Finally, the report will apply the key factor to its global capability, to discuss the further modification and development opportunity. LG Company Overview In 1947, LG Group founder Koo In-hoe established Lucky Chemical Industrial Corp. (currently LG Chemicals) in South Korea, LG initially manufactured a cosmetic called Lucky Cream. After 50s to the end of 70s, LG established its other business more widely into different areas. Now LG is a manufacturer which field in three main businesses which are Electronics, Chemicals, and Telecommunications & Services (LG official website). The company is based in Seoul, South Korea, they are operating around 130 subsidiaries around the world with around 120,000 employees in 2005...
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...Pampanga Reaction Paper 2: DESIGN- ORIENTED NEW PRODUCT DEVELOPMENT: LG Illustrates What It Takes To Be Successful (In partial fulfillment of the requirements in BM186: Operations Management) Submitted by: Calagui, Kristal Jarin, Haydee Maliwat, Ana Serrano, Czarina Siron, Kyla Submitted to: Prof. Ianne Calica Introduction There is widespread recognition that as competition intensifies and technological differentiation becomes more difficult, design offers a potent way to position and differentiate products. In the article “Design- Oriented New Product Development: LG Illustrates What It Takes To Be Successful” the authors suggest that the two approaches in reflecting a customer’s point of view in new product development (NPD) are customer-following approach and customer-leading approach. The former utilizes expressed consumer needs and the latter focuses on consumers’ latent needs. The article identified design as an important role in new product development process, especially in the case of user-driven products such as mobile phones. Thus, the number of customer-leading approaches is increasing rapidly through design-oriented NPD. An example of this is LGE’s Chocolate phone that has been a success since it was launched in 2005. The theme of the article revolves around identifying the dynamic evolutionary process and key success factors of design oriented NPD for the case of LG Electronics’ Chocolate Phone. The research method used was interpretive and case-based...
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