...Current Market Conditions Competitive Analysis ECON365 Current Market Conditions Competitive Analysis Companies spend extensive amounts of time, money and resources when exploring the creation of a new product or service. It is imperative that companies thoroughly research the market, the demand, and what consumers want. To best determine the potentials of this new product, it is important also to understand the existing and potential competitive market, explore different opportunities or issues that the company could face, and consider the factors that could affect the cost of producing the product. Company History Samsung was founded by Lee Byung Chul in 1938 in Taegu, Korea as an export trade company selling to nearby countries. During the 1980s, Samsung devoted more focus to its electronic division and began introducing products such as DVD technology, computer technology, and many other electronics as well. (Kovach, 2013) In 1983, Samsung Electronics evolved. It was not until 1999 when Samsung would make their mobile phone division the most profitable part of the company by releasing their first internet ready phone. Over ten years later, they released the first version of their flagship Android phone, the Galaxy S. (Kovach, 2013) Product History Since the original model hit the scene in 2010, many new versions have been released in the Galaxy S Series cell phone made by Samsung. (Kovach, 2013) The Galaxy S series is best known for its sleek design, its complex...
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...AN INNOVATION STRATEGY FOR LG ELECTRONICS Thanks to the continuous technological innovation of handsets, the rise of mobile phones has been nothing short of phenomenal and the trend is expected to continue in the years to come (Frost & Sullivan, 2006). Their continued success is down to the fact that today’s handsets have become much more than simply mobile phones. A mobile phone can function as a camera, PDA and has many other features such as gaming functions and access to the Internet. Based on 3G, broadband is also paving the way for video-telephony and TV viewing. Characterised by continuous change and innovation, the mobile phone industry then sets an exciting stage for devising an innovation strategy. Our focus will be on mobile phone manufacturer LG. LG Electronics, Inc. is in fact a consumer electronics company with two other business units (Digital Display & Media and Digital Appliances), besides the Handset unit we will focus on in our report. On a global scale, LG’s handset division is 5th in terms of market share based on handset revenue, behind Nokia, Motorola, Samsung, and Sony Ericsson (see Appendix 1). Despite not being in the ‘Big Four’, LG’s market position is that of a strong challenger considering the many other ‘me too’ competitors that exist (e.g. NEC, Sanyo), but who fail to register in consumers’ minds. LG’s achievement can be seen to be mainly due to the success of their ‘Black’ series with popular models such as ‘Chocolate’ and ‘Shine’. Industry...
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...Few people outside the supply chain function used to care where products came from. Nowadays, everyone from company leaders to interest groups to consumers wants to know something, if not everything, about a product’s origins. Steve New, of Oxford University, explores the technology, logistics, and inevitable opportunities and risks involved in exposing your supply chain to the world. The new tools for making supply chains transparent are proliferating. They range from sand-grain-size radio-frequency ID tags embedded in products, to customer-facing online databases that allow any comer to probe a product’s history, to webcams that show what’s going on at suppliers in real time. Managing such information so that it’s accurate, useful, and secure is no small task. But complex as the logistics may be, the benefits to a company are often well worth the effort. Transparency, if wisely marketed, can win the confidence of consumers who are inclined to buy your products and even that of potentially hostile interest groups. An unfettered, granular view into your own operations can also help you identify problems and, ultimately, strengthen the efficiency and integrity of your supply chain. Nonetheless, power that’s so accessible can easily be wrested from a company. Leaders must remain on top of the vast wells of supply chain information at their fingertips so that they can analyze—and then wisely reveal—what they find before outsiders do. Revealing Technologies Driven by growing...
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...Answers to Review Questions 1. The real rate of interest is the rate that creates an equilibrium between the supply of savings and demand for investment funds. The nominal rate of interest is the actual rate of interest charged by the supplier and paid by the demander. The nominal rate of interest differs from the real rate of interest due to two factors: (1) a premium due to inflationary expectations (IP) and (2) a premium due to issuer and issue characteristic risks (RP). The nominal rate of interest for a security can be defined as r1 r* IP RP. For a 3-month U.S. Treasury bill, the nominal rate of interest can be stated as r1 r* IP. The default risk premium, RP, is assumed to be zero since the security is backed by the U.S. government; this security is commonly considered the risk-free asset. 2. The term structure of interest rates is the relationship of the rate of return to the time to maturity for any class of similar-risk securities. The graphic presentation of this relationship is the yield curve. 3. For a given class of securities, the slope of the curve reflects an expectation about the movement of interest rates over time. The most commonly used class of securities is U.S. Treasury securities. a. Downward sloping: Long-term borrowing costs are lower than short-term borrowing costs. b. Upward sloping: Short-term borrowing costs are lower than long-term borrowing costs. c. Flat: Borrowing costs are relatively similar for short- and long-term loans. The upward-sloping...
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...Answers to Review Questions 1. The real rate of interest is the rate that creates an equilibrium between the supply of savings and demand for investment funds. The nominal rate of interest is the actual rate of interest charged by the supplier and paid by the demander. The nominal rate of interest differs from the real rate of interest due to two factors: (1) a premium due to inflationary expectations (IP) and (2) a premium due to issuer and issue characteristic risks (RP). The nominal rate of interest for a security can be defined as r1 r* IP RP. For a 3-month U.S. Treasury bill, the nominal rate of interest can be stated as r1 r* IP. The default risk premium, RP, is assumed to be zero since the security is backed by the U.S. government; this security is commonly considered the risk-free asset. 2. The term structure of interest rates is the relationship of the rate of return to the time to maturity for any class of similar-risk securities. The graphic presentation of this relationship is the yield curve. 3. For a given class of securities, the slope of the curve reflects an expectation about the movement of interest rates over time. The most commonly used class of securities is U.S. Treasury securities. a. Downward sloping: Long-term borrowing costs are lower than short-term borrowing costs. b. Upward sloping: Short-term borrowing costs are lower than long-term borrowing costs. c. Flat: Borrowing costs are relatively similar for short- and long-term loans. The upward-sloping...
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...are modified as and when the need arises. Initially, the challenge was to wean away homemakers from their traditional methods of washing clothes. But then, owing to high prices, the market appeared to be limited only to upper income urban households. The 1990s saw a changein the socio-economic scene in the country. Rapid growth, increase in the number of working women, changing life styles and higher aspiration levels with exposure to satellite television and easy consumer finance meant that demand for consumer goods rose phenomenally. Sales of semi-automatics outstrip those that in the fullyautomatic segment. This has been due to a variety of factors, price being one of them. As semi-automatic washing machines are cheaper than the fully automatic ones. The semi-automatic varieties are in the range of Rs 4,500 to Rs 10,500, fully automatics for Rs 13,000 to Rs18,000 and new generation fuzzy logic machines come for above Rs18,000. Moreover fully automatic machines require continuous water supply (for each wash cycle, the water is changed 2-3 times), which is a rarity in most Indian cities. However, the fully automatic machine seems...
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...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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...PROJECT REPORT ON FACTORS AFFECTING CONSUMER PURCHASE INTENTION TOWARDS CONSUMER DURABLES (A COMPERATIVE STUDY OF LG & VIDECON) UNDER GUIDANCE Prof. S.k.Chadha In the partial fulfillment of the requirements of the Final Project for the degree of Masters in Business Administration Submitted By Navdeep MBA International Business University Business School Panjab University, Chandigarh ACKNOWLEDGEMENT I am overwhelmed with pleasure and deep sense of gratitude towards University Business School, Chandigarh for giving me such an opportunity to do the research project which has opened my vision towards rich experience of the theory implications and practical applications studied in the MBA course. I express a heartfelt thanks to my guide Prof. S.K.Chadha who has helped me in choosing and doing this...
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...Analyzing Distribution Channel Of “LG” Prepared For : Mr. Rumman Hassan Lecturer, Marketing Name of the Course : Distribution Management Course ID : MKT 380 Section : 01 Prepared By : |Faisal Rezwan……………………………………… |0220227 | |Mir Murtoza Karim……………………………….. |0320016 | |Ramiv Mehedi……………………………………... |0220024 | |Sohel Mahamud…………………………………… |0220013 | |Most. Rubina Parvin………………………............ |0320344 | Date of Submission 24th April 2007 Independent University, Bangladesh “Table of Content” |Topics |Page no. | |1.0. Introduction |01 | | 1.1. Origin of the Report |01 | | 1.2. Objective of Report |01 | | 1.3. Scope of the Report |01 | | ...
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...“The strategy taken by Hindustan Unilever Ltd. (HUL) to enter the rural sector, which has remained insulated so far, is a good one,” says Atmanand. “In states like Maharashtra, Gujarat, Andhra Pradesh, Delhi and Haryana, the company is expanding steadily by expanding their network of dealers and making themselves household names.” Of course, replicating the HUL model may be difficult for a startup, but it does serve as a valuable lesson in marketing: Don’t put all your eggs in one basket. The entire gamut of white and brown goods has found a place in the rural market, driving several industries to actively explore it. “In the current scenario, companies should change their strategies for market-ing. For market sustainability, we have to look at the rural markets. This would include products that have been especially designed for these markets at prices that will suit the sector,” says Atmanand. Tailor-made products for rural India The company should provide rural folk with products and services that would meet their requirements. Take Cavin Care, for instance, which launched its shampoo in sachets. Also consider Britannia, which packaged its Tiger brand biscuits at a low price tag. Such companies obtained an understanding of the rural customer’s needs and provided them with the desired products. Atmanand’s emphasis is clearly on Para-meters that change the dynamics of marketing a product. Rural markets offer a great potential to help India Inc. (which has...
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... North South University Date of Submission: 17 August, 2015 Table of Content S.L No | Particulars | Page No. | | Executive Summary | 1 | 1. | Company Background | 2 | 1.1 | Walton HIL | 2-3 | 1.2 | Primary industry | 3 | 1.3 | Standard Industrial Classification | 3 | 1.4 | Mission | 3 | 1.5 | Vision | 4 | 2. | Describing the Walton Customer | 4 | 2.1 | Electronics Market in Bangladesh | 4 | 2.2 | International Market of Walton Hi-Tech Industry | 5 | 3. | Major Determinants of Demand of Walton hi-Tech Industry | 6 | 3.1 | Choice of variables | 6 | 3.2 | Observable variables | 6 | 3.3 | Sales Information of Walton Refrigerators | 7 | 4. | Price Elasticity Function of Walton Hi-Tech Industry | 7 | 4.1 | Price elasticity of demand (PED or Ed) | 7 | 4.2 | Number of available substitutes of Walton product | 8 | 4.3 | The price level relative to consumer’s budget | 8 | 4.4 | Durability of the product | 8 | 4.5 |...
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...TV Manufacturing Industry By: Manglesh R. Yadav Table Of Contents: 1. History Of TV in India 3 2. Samsung Electronics 3 3. LG Electronics 8 4. SONY 11 5. Videocon 13 6. My View 15 7. References 17 Television Manufacturers and their growth History Of TV in India: Television has been in India for over 40 years now. During the first few years the growth of television was very sparing and the distribution happened of mostly black and white sets. This was because in the early period the people used to think of it as a luxury item without which the life could go on. It is in the last 25 years that the television market has picked up pace and is growing rapidly. A very significant year in the advent of television industry in India was 1982. This was the time when the Indian government allowed import of thousands of color TV sets for the broadcast of Asian Games held in New Delhi. After this the real boom of TV industry started. Today India is the largest market for TV sets and also viewership. Not only this, but overall TV industry is the most booming sector among consumer electronics in India. The main market capture is divided in between Samsung, LG, Sony, Panasonic, etc. Samsung History: Samsung Electronics is a South Korean organization which manufactures TV and is globally the leader in LCD TV section...
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...Masters of rural markets: Accenture Research Report The Hallmarks of High Performance Contents Foreword: Unleashing India’s rural multiplier effect Growing business confidence in rural opportunities The attractions and distractions of rural markets 03 05 09 Distinctive capabilities that enable 15 companies to succeed in India’s hinterland Framework factors critical to nurturing distinctive capabilities Developing the right capabilities—and acting on them Last word 28 29 31 2 Foreword Unleashing India’s rural multiplier effect But rural India’s contributions to the nation’s economic success—and the obvious potential for profitable growth—is just a part of the promise of wholehearted commitment to doing business beyond the city centers and suburbs. India’s rural markets offer unprecedented opportunities for global and local companies to experiment with approaches and business models, which if successful, may be replicated in rural markets of other emerging economies. India is on the march. Its momentum is not only evident in metros— it is apparent in small towns and villages as well. Collectively, all over India’s rural heartland and in its teeming cities, India is readying for an even more impressive era of economic growth. There is no question that India’s rural markets are becoming a powerful economic engine. One telltale sign: rural accounts now comprise over 50 percent of new subscribers for some of the leading telecom providers.1 The rural multiplier...
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...Suffolk University Thien Le Apple iPhone 6 & 6 Plus Managing for quality is one of the most important issues that a firm has to take care of to sustain and grow its business. The overall quality of products plays a big role in brand reputation and reliability as well as in the improvement of customer satisfaction. As a “big guy” in the manufacturing of electronic devices, Apple has separated itself from other players by creating a high quality standard derived from its brand positioning that is rooted in the company’s culture. Every product has to go through a whole set of processes to make sure that it meets the highest standard of quality. Even though they are mass-produced, its products are detailed in a way that makes them look like they are finely crafted. All the products are integrated to insure that they are easy to use with minimal after-sale support. To make those things possible, suppliers of Apple are carefully selected and tested to ensure that they are able to conform to the standards set up by the company. The quality of products is evaluated based on internal and external quality metrics such as level of customer satisfaction and design conformance. Below is the result of an official survey conducted in 2013 on smart phone customer satisfaction by manufacturer which Apple was on the top. Apart from product quality, Apple also focuses on service quality. It provides Apple users with advice and technical support through its physical and online infrastructure...
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