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Lg Porter's Five Forces Analysis

In: Business and Management

Submitted By m62605486
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Introduction
LG is a South Korean company that manufactures mobile phones, as well as other devices such as televisions and home appliances. They also offer Appliances , computer product, solar, LG originally stood for "Lucky Goldstar", but is now promoted as meaning "Life's Good". And LG is the fourth largest mobile phone manufacturer in the world.

LG Porter's Five Forces Analysis
The Bargaining Power of Buyers
The bargaining power of buyers is petty moderate. There aren't many companies have same quality of products as those of LG. They have really high technologically televisions, monitors, notebook PCs. It stand out among existing competitors. Everything from the slim and sleek, it make the products superior to the competing companies.

The Bargaining Power of Suppliers
LG 's bargaining power of suppliers is very low. The company forms information partnership to create cooperation among supply chain partners for mutual success. It enters into a cooperative relationship with its suppliers by becoming their shareholders. This allows LG to promote strategic relationships with equipment and parts suppliers, which enables a stable source of supply at competitive prices. The result is high-quality parts at a lower cost which is done through sharing product concepts with suppliers early in the product development cycle.

Threat of Substitute Products or Services

The threat of substitute products is low. Their main production is panel TV, Substitutes for LCD are LED and OLED, both are newer technologies and they are currently developed by the LG too. As long as LG can maintain its current market share of a quarter percent for the newer products, substitute products would not be considered as threats. The company’s development of new products and technologies that can be differentiated from those of its competitors increases switching cost as well as

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