...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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...Case Study 3 LG Electronics: Global strategy in emerging markets Suggested case discussion questions Q1 Explain how LG’s experience within its domestic market (South Korea) influenced how it expanded into the BRIC emerging economies All MNCs are shaped, to some degree, by their domestic markets. In LG’s case, its emergence in Korea during the decades following the Second World War strongly affected its ability to expand into the BRIC economies. The domestic Korean market was highly competitive, which helped hone its ability to enact “come from behind” approaches in other locations as it was used to having to fight its way to the top. The Korean Government placed strong emphasis on R&D within LG’s home economy, which had a double-effect on it. First, the importance of high quality R&D enabling quick and effective localization of products and services was always central to its approach to expanding its presence within the emerging economies – this runs counter to much perceived wisdom that suggests emerging economies do not have infrastructure to support such a policy. Second, it built on its experience of working with governments, which it then displayed most effectively in Brazil. The Korean Government encouraged foreign direct investment which saw LG partner with Hitachi of Japan, again, allowing it to develop valuable partnership experience that would be brought to bear on joint ventures within emerging economies. Lastly, emerging within an economically...
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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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...CASE OF LG GROUP: DEVELOPING TOMORROWS GLOBAL LEADERS There is no company which is resistant to environmental changes, especially business environment. As the year comes by, new inventions or innovation will absolutely give impact on every type of business in the world. However, the causes of the impact, in other words, the root of the changes in the environment is not merely coming from company external territory; in most cases the impacts (either negative or positive) can come from external territory and internal territory of the company. This written analysis focuses on the LG Group’s Chairman Koo who once stated and defined his vision for the LG group to develop and improve significantly and to be a leading company in its local market area (Korea) and the wider market scope, international market and increase its revenue significantly within 7 years period. This is known as “LEAP 2005”. Even though is not an easy task to do, he is much certain that the group can do that. He considers the past performance of the group and the major internal changes within the company will enable it to achieve what its chairman wants. The main key success, as the management agrees, lies on the future leaders of the group. There are several questions that arise as the result of the discussion between the management in relation with this key point, namely where and how to find these future leaders, what capabilities of competencies these leaders should possess how to develop these key competencies...
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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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...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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...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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...lectronics Case Study 3 LG Electronics: Global strategy in emerging markets Suggested case discussion questions Q1 Explain how LG’s experience within its domestic market (South Korea) influenced how it expanded into the BRIC emerging economies All MNCs are shaped, to some degree, by their domestic markets. In LG’s case, its emergence in Korea during the decades following the Second World War strongly affected its ability to expand into the BRIC economies. The domestic Korean market was highly competitive, which helped hone its ability to enact “come from behind” approaches in other locations as it was used to having to fight its way to the top. The Korean Government placed strong emphasis on R&D within LG’s home economy, which had a double-effect on it. First, the importance of high quality R&D enabling quick and effective localization of products and services was always central to its approach to expanding its presence within the emerging economies – this runs counter to much perceived wisdom that suggests emerging economies do not have infrastructure to support such a policy. Second, it built on its experience of working with governments, which it then displayed most effectively in Brazil. The Korean Government encouraged foreign direct investment which saw LG partner with Hitachi of Japan, again, allowing it to develop valuable partnership experience that would be brought to bear on joint ventures within emerging economies. Lastly, emerging within an economically...
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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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...assessments other than those conducted in-class, I have retained a copy. I understand that uncollected assessments will be destroyed. Questions | Possible Marks | Actual Marks | | | | 1 | 10% | | Student’s signature: _________________________________ Date: Introduction of LG LG electronics which is called GoldStar at that time was founded by KOO IN-HWOI who was founder of LG corporation in 1st Oct 1958 at KOREA. At that time, radios were attracting interests as embodiments of civilization, bringing news of the world to their listeners. Mr. Koo thought, ‘we could make a radio by ourselves likes TOSHIBA, NATIONAL.’ So, he founded GoldStar. And finally, at 15th Nov 1959 they made the first Korean radio which is including more than 60% of domestic components. It was beginning of both LG electronics history and Korean electronic industry’s history. LG electronics started expanding their business to overseas by exporting radios to U.S at 29. Nov. 1962. LG electronics Singapore. Started business as the international purchasing office(IPO) in Singapore in October, 1989 for the first time in the Korean industry history. LG Electronics was able to purchase parts from the Singapore manufactures at lower...
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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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...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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...Promotional and Advertising Strategies Dr. Polack Dominique Townsend 12-8-2014 Abstract Success is the level that is reached from hard work and dedication. In order for a company to reach this level it takes a motivated person or persons with a vision and drive. That would lead the company in a positive direction towards its mission and goals. There have been two television brands that came to this realization. They are LG and Panasonic. The beginning of LG began in 1958 as Goldstar. The company has since evolved into a big name in the electronic industry. One of their first major televisions was the 60 inch plasma in 1998. Their goal is to add to consumers lives by improving it every day. As a part of the companies mission statement; the increase they improve lives by way of fun and functionality of their products. When having fun consumers enjoy the products. Enjoying products would certainly make life good. As for Panasonic their journey began by a Japanese man by the name of Konosuke Matsushita. Little did he know that he would change impact and change the lives of many people in the 21st century. The year 1918, launched its very first product. This particular product was the attachment plug. It was not until 1960 that the company came out with their first color television. Both companies have evolved into two major powerhouse names that we know and love today. Each has its own promotional and advertising strategies. It is through research that...
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...LG’s Michael Ahn on Becoming a 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...
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