...Global strategy of LG Electronics as a leading Korean company Tomikazu Hiraga Senior research Fellow NLI Research Institute Economic recovery in advanced countries including Japan is still sluggish, although corporate financial performance has been recovering gradually. And companies whose business activities in emerging countries experiencing an economic boom account for a larger proportion tend to show better financial performance. Leading Korean companies have a larger presence in the world market and attract considerable attention. I will focus on LG Electronics, Inc., a leading company ranking with Samsung Electronics Co., Ltd. in the world’s electrical and electronics industries, with the largest market share in home appliances markets in important emerging countries, such as India, Brazil, and Indonesia, and relatively advanced management methods including corporate governance, which are highly valued, and will discuss features or important points of its global management and personnel strategy in this article. (Reference: Exchange rates as of August 5, 2010 were as follows. The Japanese yen/Korean won foreign exchange rate was approximately ¥0.074 to the Korean won. The Japanese yen/Indian rupee rate was approximately ¥1.87 to the Indian rupee. ) Leading Korean zaibatsu—The LG group The Korean zaibatsu (chaebol), a unique large companies group, is very influential in Korea’s corporate sector. Top 28 companies by market capitalization other than public corporations account...
Words: 2429 - Pages: 10
...Global strategy of LG Electronics as a leading Korean company Tomikazu Hiraga Senior research Fellow NLI Research Institute Economic recovery in advanced countries including Japan is still sluggish, although corporate financial performance has been recovering gradually. And companies whose business activities in emerging countries experiencing an economic boom account for a larger proportion tend to show better financial performance. Leading Korean companies have a larger presence in the world market and attract considerable attention. I will focus on LG Electronics, Inc., a leading company ranking with Samsung Electronics Co., Ltd. in the world’s electrical and electronics industries, with the largest market share in home appliances markets in important emerging countries, such as India, Brazil, and Indonesia, and relatively advanced management methods including corporate governance, which are highly valued, and will discuss features or important points of its global management and personnel strategy in this article. (Reference: Exchange rates as of August 5, 2010 were as follows. The Japanese yen/Korean won foreign exchange rate was approximately ¥0.074 to the Korean won. The Japanese yen/Indian rupee rate was approximately ¥1.87 to the Indian rupee. ) Leading Korean zaibatsu—The LG group The Korean zaibatsu (chaebol), a unique large companies group, is very influential in Korea’s corporate sector. Top 28 companies by market capitalization other than public corporations account...
Words: 2404 - Pages: 10
...in India and expect to up it to 32 per cent by December 2011,” LG Electronics India’s managing director, Mr Soon Kwon, told PTI here. “We are targeting around Rs20,000-crore revenue by end-2011 as against Rs 16,000-crore last year. We are growing fast in India and will continue to grow in the market,” he said. LG Electronics India has nine products in the segment and plans to launch more models in this segment in the coming days. “India is one of our key markets. Every year, we are launching some (new) models of home entertainment products in India. We will continue to launch more models in the coming days,” he said. Around 20 per cent of the company’s revenue comes from rural India and it plans to increase this by beefing-up its distribution by opening more outlets, he said. Presently, the company has 20,000 outlets pan-India. LG Electronics competes with Samsung, Philips and Whirlpool in the domestic market. India contributes 6 per cent to the company’s global revenue, he said, adding, “we expect it to double to 12 per cent in the next three years.” Over the next five-years, the company is hoping that India would emerge as its second biggest market, overtaking Korea which now holds that position, he said. The company set up its wholly-owned Indian unit in 1997 and has grown to be among the leading brands in the country’s fast growing consumer durables market. The company today launched its next generation 3D TV...
Words: 404 - Pages: 2
...1.0 Introduction of LG Electronics Inc. LG Electronics Inc. is a South Korea multinational electronics company which is also known as the global leader and technology innovator in consumer electronics. The LG Company was a merger of two Korean companies, Lucky and Goldstar, from which the “LG” abbreviation was derived. (Mariush,2012) The company’s headquarter is located in Yeouido-dong, Seoul and the flagship subsidiary of the LG Group. LG has a global sales of KRW (Korean Won) 54.26 trillion which is equal to USD 49 billion in the year 2011. The company operates its business with four business units: mobile communication, air conditioning & energy solution, home entertainment and home appliance. (LG, 2012) It has 75 subsidiaries operates around the world that design and manufacture its products. LG is the world’s second largest flat screen television-set maker after Samsung Electronics Co. (Lee, 2012) Home Entertainment The LG Electronics which is also known as the top global players in home entertainment produces flat panel displays, audio players, video products, monitors, commercial displays and security systems for the consumers and also the commercial markets. LG is not only focusing on creating full-features devices but it is also emphasizing on following the technology boundaries to improve the products. Mobile Communication LG has committed to provide the best ever user experience to expand the next generation of communication by inventing new technologies...
Words: 3058 - Pages: 13
...Case Analysis for Pepsi Co Acquisition - More high level analysis (by beverages and food) we are in consumer packaged beverage and snack business Identify • Vision • Mission - Market leader in every industry they compete in - Synergies (transferring, management, HR skills, distribution channels – i.e. Power of One) - Market expansion (international) - Related diversification (share some of the same channels, advertising, distribution, etc) - There was no clear cut vision ( analysts and CEO even admitted it (looked like they were taking advantages of long term and short term opportunities) - Why do you have a portfolio of businesses? Maximize shareholder value ( would be one of the main drawbacks - Would buy current companies that will help piggy bank on their current success (i.e. restaurants and distribution channels) - Portfolio management – do they sell things off at the right time Identify Strategic Objectives (Are these objectives SMART) • Financial o Growth sale by certain percentage o Stock price o Cash • Non-Financial o Efficiency o International market Identify Current Business Strategy • Does It Make Sense? Why? Evaluate 1. Industry • Five Forces – Look at the industry today (*implication to the industry) Rivalry - Big companies manage to find niche and expand it - Little guys usually get bought out from...
Words: 1542 - Pages: 7
...baby products had been used extensively by young female adults and women in a completely unintended fashion. This clearly provides an evidence of vacuum in this space and the need and opportunity to develop and market a new face powder product catering to the needs of these women. The product can be positioned either as a cosmetic/toiletry product and targeted specifically at young/adult women of varying buying power capabilities. The choice of distribution channels also plays a critical role while targeting these segments. Estimates (15-month period): Revenue: 6,500,00 peso => 2,600,000(compacts) & 3,900,000 (refills) [1:1.5 ratio] Price: 39.95(compact) vs 24.95(refills) Expected purchases : 2.6M/39.95 = 65,081(compacts) & 3.9/24.95= 156,312(refills) Potential Marketing Strategies Option 1(given in case): Toiletry product - Value Pricing - AB & C class urban females, 16-25 years old - Distribution channel- Supermarkets * Appeals to mothers looking for non-cosmetic products. * Super market distribution increases access to audience, reduces cost. * Value pricing will create easy acceptance for customers. * Opportunity to create a new product segment and first mover advantage. * Not many upper class people come to super market to make low-value purchases. * Apparent conflict between target segment (high class urban) and value pricing positioning. * AB & C...
Words: 741 - Pages: 3
...ASSIGNMENT # 3: Pricing Strategy and Channel Distribution By Strayer University MKT 500 November 8, 2010 Abstract: The purpose of this paper is to discuss the Pricing & Distribution Channels of Baker’s Bed & Breakfast Inn. Unlike cookie cutter hotels, Bed & Breakfast Inns are unique and they provide there own characteristics, setting, and ambiance. At Baker’s Bed & Breakfast Inn we cater to our guest tastes and needs. Pricing Strategy: Owning and operating a Bed & Breakfast can provide both financial and personal rewards. In the United States Bed & Breakfast Inns are making a comeback, serving travelers who want a special personal home-like hospitality and a good breakfast to start the day. (Bed& Breakfast Inn Online, 2009) Baker’s Bed and Breakfast Inn take pride in providing our customer’s with a luxurious accommodations. Our prices for accommodation have been set at the higher end of the market as the client base is seen as in the mid to higher socioeconomic sector. Pricing scheme is based on a room rate per night, which includes breakfast. Prices for the weekends will be 10% higher than weekdays, and when guest stay three nights or more a discount o 15% will be applied to guest bills automatically. As there are not a high level of seasonality for guests coming to the region prices will be set at the same year round except for special events such as Easter, Thanksgiving, Christmas and New Years. At these special times a 10% surcharge will...
Words: 945 - Pages: 4
...Table of Contents Executive Summary ------------------------------------------------------------------------ 3 Strategic Analysis --------------------------------------------------------------------------- 4 Analysis results ------------------------------------------------------------------------------ 7 SWOT ----------------------------------------------------------------------------------------- 8 Balanced scorecard ------------------------------------------------------------------------- 9 Recommendations --------------------------------------------------------------------------10 Executive Summary Our consulting firm, NG Inc, was asked to research Starbucks and compile a strategic analysis and balanced scorecard for their career objectives. Starbucks was founded in 1971 in Seattle and continues to be the lead marketer of fine coffee at the retail level. It currently has retail stores in all 50 states, as well as 36 countries outside the U.S. Its products and services include: over 30 blends of coffee, hand crafted beverages, merchandise, fresh food, global consumer products, Starbucks cards (rechargeable gift cards), and its brand portfolio (subsidiaries such as the Tazo Tea Company and Ethos Water). After preparing a balanced scorecard for their 2004 strategies, we compared the actual 2005 data to their goals to measure how successful they were in achieving these goals. In order to prepare a strategic analysis and balanced...
Words: 1197 - Pages: 5
...and its ownership closer to the final buyer. Channel conflict: Disagreement among marketing channel members. Vertical marketing system :A distribution channel structure in which producer wholsers , and retailers act as a unified system one channel members owns the others ,has contracts with them or has so much power that they all cooperate Future vertical marketing system divided in to two .They are 1.conventional marketing system 2.vertical marketing system Vertical marketing system: A vertical marketing system comprises of the producer, wholesaler and retailer acting as a unified system. One channel member, the channel captain owns the members and has so much power that they all cooperate. It arose as a result of strong channel member’s attempts to control channel behaviour. There are three types of VMS: CORPORATE, ADMINISTERED AND CONTRACTUAL. CORPORATE VMS: A corporate VMS combines successive stages of production and distribution under single ownership. For example Sears obtains over 50% of the goods it sells from companies that it partly or wholly owns. ADMINISTERED VMS: An administered VMS coordinates successive stages of production and distribution through the size and power of one of the members. The most advanced supply-distributor arrangement for administered VMSs involve distribution programming, which can be defined as building a planed, professionally managed, vertical marketing system that meets the needs of both the manufacture...
Words: 2012 - Pages: 9
...MY EXPECTATIONS ABOUT MARKETING MANAGEMENT AND MY ESTIMATION ON HOW IT WILL HELP ME IN MY CAREER OR ENTREPRENEURSHIP PATH Marketing management is explained by the American Marketing Association (1985) as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives. As a managerial function marketing management is not solely important to the marketing manager only but also necessary to any individual who wishes to develop him or herself in his or her carrier and business. In pursuing this course, I expect to be equipped with knowledge in advertising, promotion, pricing and the distribution of ideas, goods and or services so as to be able to make an informed contribution when decisions concerning marketing in to be made. Knowledge in marketing management will equip me with skills that will make me innovative in my career by knowing which ideas to bring forth to get things working right. Specifically, ideas that will bring positive changes rather than following every decision on marketing made because of lack of knowledge in the field. I also expect to acquire knowledge in managerial skills that will widen my career options. Knowledge in marketing management may guarantee my selection for a job placement in the area of marketing or even better my chances of selection for placement in my career field because of the added knowledge which will give...
Words: 381 - Pages: 2
...Executive Summary Barilla SPA, an Italian pasta manufacturer is the world’s largest pasta producer. Due to its multiple distribution channels, the company gradually suffered operational inefficiencies and increasing overhead costs that resulted from fluctuating demand - orders often swung wildly from week to week. Feeling that an alternative approach needs to be implemented for improvement, the company’s former Director of Logistics, Brando Vitali had proposed a new system call ‘Just-in-Time Distribution (JITD). Rather than simply fulfill distributor’s weekly order; the new system requested customer to submit their detail sales data which Barilla could then use to make decision for the “appropriate’ delivery quantities. Unwilling to give up authority and fear of losing potential sales commission or even become unemployed, the new system had met significant resistance within Barilla’s own sales and marketing organizations, and the distributors Barilla approached. The purpose of this report is review the issues and analyze the “Just-In-Time Distribution (JITD) system, in order to further understanding for the decision processes involved in implementing this new supply chain system. Issue(s) Identification As described by Brando vitali: “Both manufacturers and retailers are suffering from thinning margins”. Barilla’s supply chain of dry products was facing significant problems. The following are some of the issues must be reviewed for the company. By viewing...
Words: 391 - Pages: 2
...lower prices at compare to its competitors. It is a store where most individuals, who are on a low budget, still get to buy what they set out to buy. Wal-Mart’s low prices made the store a hero of some 45 million low-income Americans. Their loyalty, in turn, made the store a leader in almost every consumer category. * Everyday Low Pricing Wal-Mart is able to shift the low cost advantage to its customers and make the products available at lower prices, everyday. Lower prices were made possible by the company’s mastery of back-end operations and its cutting edge distribution system. * Established Brand Name Wal-Mart has a very well established brand name that is identified with reasonable to cheap pricing and bargain pricing. * Supply Chain and Logistics Capability One of Wal-Mart’s competitive advantages is their remarkable logistics system. They are able to ship merchandise from any of their numerous distribution...
Words: 312 - Pages: 2
...fluctuations, especially when demand increases and decreases. The main reason for this phenomenon is a lack of demand information in the supply chains. FORRESTER was the first who mentioned the bullwhip effect in the literature.1 He studied the behaviour of dynamic systems in industrial organisations, by analysing different parameters like stock sizes, production rates and time delays and demonstrated the effects on these parameters, whenever modifications are applied. The outcome of his analysis was, that in a simple production- and distribution system, a small interruption or fluctuation in demand at the retail stage can cause a significantly stronger fluctuation in the whole system.2 These fluctuations have first been considered to be unavoidable and beyond the control of the respective companies. Forrester cleared up that misunderstanding on the basis of a four level dynamic system, showing the organisational structure of a production- and distribution system: Illustration: Bullwhip Effect3 1 2 Forrester, J. (1972), 21ff. Forrester, J. (1972), 22. 3 http://sinaslogisticsblog.blogspot.co.at/2010/04/bullwhip-effect.html (13.01.2015) 1 Matthias Spleit (0966118) There are four main operational factors that stimulate the bullwhip effect:4 1. fixed costs in production, ordering, or shipping, which encourage order batching 2. shortage gaming, which encourages phantom orders 3. price promotions, which encourage forward buying 4. errors in demand signalling, which...
Words: 600 - Pages: 3
...Q1. Value proposition Walmart’s value proposition is based on offering Everyday Low Price. This is the core of Walmart’s Business Model, and the rest of the key features of Walmart’s Business Model are aligned to keep the everyday low price. This proposition implies that the customers do not need to wait for sales to have the best deal possible. Besides, not only the sells convenience is associated by providing the wide range of products and services to choose from, but also with one-stop is possible to make all the shopping needed, from groceries to pharmacy. Walmart’ customers save time and money Distribution channel To deliver its value proposition Walmart communicates with and reaches its customer segments with its distribution channels which are owned and direct, and brings higher margin. Walmart also is corresponding with its customers mainly through mass media and other ways which have a low cost, such as internet. Customer relationships Walmart establishes a customer relationship is based on self-service and automated and towards co-creation of some products once it is possible. Walmart tends to reach to the mass market toward mass customisation. Walmart’s customers can be divided into three groups: “brand aspirations”, people with low incomes who are obsessed with brand; “price-sensitive effluents” wealthier shoppers who love deals; and finally “value-price shoppers” who like low prices and cannot afford much more Strong buyer-supplier relationship Walmart...
Words: 703 - Pages: 3
...India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering...
Words: 456 - Pages: 2
