...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...
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...concerning this external analysis is the mobile department of LG. The following is a PESTEL analysis followed by a Porter’s FIve Forces analysis. Political There are many things to consider about politics for a multinational technology based company. Many different governments play a role in politics for a worldwide manufacturer. There is a large political movement for changing laws for more eco-friendly companies. In order for LG to create cell phones, tablets, and accessories, the LG must acquire material that is extracted from the earth, for example: aluminum, antimony, cadmium, cobalt, copper, etc. Also, in order to manufacture these electronics, LG must create plastics, batteries, and circuit boards, which use quite a bit of crude oil in the process of manufacturing. If political leaders in certain parts of the world were to change the laws about being more eco-friendly, LG would have to change either where they manufacture or how they manufacture. The eco-friendliness of LG’s manufacturing will affect many areas of the external analysis. Another major thing to consider for a political factor is importing and exporting products and materials. LG operates worldwide and could be affected by certain government decisions on their country's import or exporting standards or allowances. Along the same line as that, governments also have power over minimum wage and tax laws. Which can affect either way for a major manufacturer such as LG. Economic When considering...
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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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...Porter’s Five Forces Porter’s Five Forces analysis is a model used for industry analysis. Apple plays a significant role in four businesses, namely the communication equipment industry, the music and video industry, the mobile phones industry, and the personal computer (PC) industry. Because its participation in the overall PC industry is comparatively small compared to its other products, only the first three industries shall be analysed here. Apple’s overall business includes eight product lines: iPhone , its related products and services; iPad and related products and services, Mac portables and other music related products and services, Mac desktops, iPod, software, services and other hardware (Apple, Inc., 2014; GCEIP, 2014). 3.1 Bargaining Power of Buyers Communication Equipment Industry Buyer power is moderate. Apple communications equipment caters to individual buyers, but each buyer has little bargaining power as he/she bargains for him/herself alone. If the company loses just one consumer, the effect on the company will be insignificant. Collectively, however, buyer power may be more significant, as switching costs are low. Fixed line telecommunication devices have a low degree of differentiation and there is little innovation taking place in this area, for which reason buyers are sensitive to price levels and could easily transfer from one supplier to another. Apple’s major competitors in this market include Lenovo, Nokia, and Samsung (GCEIP, 2014; CEIPUK,...
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...PORTERS FIVE FORCES Porter's Five Forces is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. Porter referred to these forces as the micro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. The five forces of porter’s five forces model are as follows: 1. The threat of the entry of new competitors 2. The threat of substitute products or services 3. The bargaining power of customers (buyers) 4. The bargaining power of suppliers 5. The intensity of competitive rivalry 1. The threat of the entry of new competitors Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. The new entrants face barriers to entry. They need to overcome them to compete successfully. Some of the barriers are capital requirement, customer loyalty, experience, etc. Specialized technology, production and distribution require high capital costs which acts as one of the barrier. The high customer’s loyalty and experience of the established firms also...
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...` BANKING ACADEMY, HANOI BTEC HND IN BUSINESS (ACCOUNTING) ASSIGNMENT COVER SHEET | NAME OF LEADER | | REGISTRATION NO. | | UNIT TITLE | Unit 4: Marketing Principles | ASSIGNMENT TITLE | LG Electronics in Vietnam | ASSIGNMENT NO | 1 of 2 (Group Assignment) | NAME OF ASSESSOR | Ms. Doti Chee | SUBMISSION DEADLINE | November 2013 | ------------------------------------------------- ------------------------------------------------- I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment. ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ________________________________ _________________________ ------------------------------------------------- ------------------------------------------------- Signature Date ------------------------------------------------- Serial No | Group member (Vietnamese Name) | Group member (English Name) | Class FO6 | Student no | Signature...
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...Market analysis From Wikipedia, the free encyclopedia Jump to: navigation, search | This article has multiple issues. Please help improve it or discuss these issues on the talk page. * It needs additional citations for verification. Tagged since September 2010. * It includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations. Tagged since September 2010. * It may require cleanup to meet Wikipedia's quality standards. Tagged since September 2010. | A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and this in turn of the global environmental analysis. Through all these analyses the opportunities, strengths, weaknesses and threats of a company can be identified. Finally, with the help of a SWOT analysis, adequate business strategies of a company will be defined.[1] The market analysis is also known as a documented investigation of a market that is used to inform a firm's planning activities, particularly around decisions of inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other aspects of a company. Contents [hide] * 1 Market segmentation * 2 Dimensions of market analysis * 3 Elements * 3.1 Market size * 3.2 Market trends * 3.3 Market growth rate * 3.4 Market opportunity * 3.5 Market...
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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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...3141 group ass: porter 5 forces and life cycle Porter’s Five Forces Model: Porter’s five forces model is commonly used when making an analysis of competitive structure of an industry and the factors need to consider and analyse include: competitive rivalry within an industry, barriers or threats to entry, supplier power, buyer power, and threat of substitutes. 1. Competitive rivalry within an industry: When analyzing an industry, it is necessary to pay attention on each main competitor, there are a few factors that every company should analyse, these include the concentration, structural diversity, differentiation, and production capacity, applying in Motorola, competition is caused by the presence of many other companies that compete for the same target market and supply, secondly, low switching cost for customers to choose between all the similar products, thirdly, there is rare strategy for remedy when the company losing its market position and advantages, and lastly, a diversity of rivals with different histories, culture, and environment. Motorola is also facing a problem that there are many competitors such as Apple, Samsung, LG, Sony, and so on, the competition in the smartphone industry is really high, one of the important way that the company needs to consider is “the fight of high value”, they should work to gain more valued consumers, and gain the advantages that to always go first and support a country or city which is in the most difficult period...
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... I. INTRODUCTION A. EXECUTIVE SUMMARY 1. Summary statement of the problem: The Haier Group is a major home electrical appliance maker based out of China. This company was listed as the only Chinese name brand among the world’s 100 most recognizable brands in a global name brand list edited by the World Brand Laboratory. The main issue that Haier Group is facing is how expand into the U.S. market. 2. Summary statement of the recommended solution: Haier has been successful in the Chinese and foreign market but is looking to succeed in the U.S. market. The problem is, Haier has to compete with well known electrical appliance maker companies like General Electric, Whirlpool, Maytag, Electrolux, Sony, Panasonic, Phillips and LG. All of these companies are well known in the US and have control over the market. Haier Group will have to lower their prices for their products in order to get U.S. consumers to want buy their products. Then they’ll have to convince U.S. consumers that their products are comparable with the other major brands when it comes to productivity. When they achieve this goal there will be no stopping Haier. B. THE SITUATION Haier Group started out in 1984 and was enterprise that was owned by the Chinese government. They originally imported refrigerator technology from Germany. Haier would eventually start to venture into international expansion, acquisitions and mergers, capital operations, scientific management and technical innovation...
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...Assignment 1: Strategy Analysis- Starbucks Introduction One of the most competitive industries in the world is the food and beverages companies. Being one of the shopping and tourist capitals in the world, Hong Kong has many competing companies in these industries. The coffee market in Hong Kong has been markedly flourishing in the past decades leading to the sprout of the number of coffee shops in the country. the sprout of the number of coffee shops in the city. The coffee drinking culture in the said country has been one of the most eclectic from ‘gourmet’ to the local blends served in coffee houses. In Hong Kong, there exist different competing coffee shops and this includes Starbucks Coffee shops. It can be said that this type of industries can be considered to have a strong competition in the market. Primarily, of this paper is to analyse the strategies used by Starbucks through SWOT Analysis and Porter’s Five Forces Model. From this analysis, optimistic and pessimistic scenario for the next ten years will be considered. Company Overview Starbucks Coffee is known as one of the fastest growing brands in the international level, the company made its debut in May 2000 as it opened its first store in Hong Kong at launched at Central's Exchange Square. The second store was opened at Hysan Avenue in Causeway Bay (Ho, 2002). At the end of 2000, Starbucks had already nine coffee houses in Hong Kong and continue to grow in the...
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...Business Models Analysis and Suggestion with Web 2.0 Strategy Contents 1. Abstract 3 2. Apple’s Business Model 4 2.1. Elements of successful business model 4 2.2. Apple’s innovation on its business model 4 2.2.1. Customer Value Innovation 4 2.2.2. Profit Pattern Innovation 5 3. Challenges Analysis 6 3.1. Apple’s challenges 6 3.2. Porter’s Five Force Model analysis 6 3.2.1. Threat of new entrants 7 3.2.2. Threat of substitute products or services 7 3.2.3. Bargaining power of customers (buyers) 7 3.2.4. Bargaining power of suppliers 8 3.2.5. Intensity of competitive rivalry 8 3.3. Innovation Matrix 9 4. Suggestion and action plan 10 4.1. Apple’s Fishbone Diagram 10 4.2. Monetizing for Apple with Web 2.0 strategy 11 4.2.1. N-sided platform 11 4.2.2. Multiple revenue stream 11 4.3. Platform Innovation 11 4.3.1. Production 11 4.3.2. Creative and Media 11 4.3.3. Accessories 11 4.4. Online Promotion 12 4.4.1. Action Plan: 12 4.5. Sustainable Competitive Advantage 12 4.5.1. R&D input 12 4.5.2. Better customer value 12 4.5.3. Sustainable profit pattern 12 5. Business Model Canvas 13 Conclusion 14 Reference: 15 1. Abstract Apple’s huge success set off a global widely discussion on its secret. According to this essay, it is not difficult to find its success story was attributed to its unprecedentedly innovative business model, which was not rare in the typical case analysis of Walmart...
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...Table of Contents TABLE OC CONTENT 1.Introduction ……………………1 2.Current performance …………1 3.Market share………………………2and 3 4.Ansoff's Matrix - Planning for Growth…..4 5.PEST ANALYSIS………………………………………4 6.Marketing MIX………………………….6 7.Porter’s Five Forces…………………….7 8.Swot Analysis ……………………………9 9.Conclusion …. .………………………………..11 10.Recommandations………………………..11 11. References………………………………….12 The purpose of this paper The purpose of this paper is to outline the Samsung’s current situation, addressing where and how they currently operate, both in the home market and globally. Detailing such information as market share, product ranges, pricing strategies, competitor analysis, plus other key issues that are relevant to the company and products we are reviewing. We will present issues that will have an impact on the company’s future global strategy. 1.Introduction . Samsung electronics is South Korean global company, a part of the Samsung group established in 1938,employing approximately 206000 people in 197 offices across the 72 countries. The company sales is $ 143.1 billon in 2011 considerably 13% more than previous year(annual report of Samsung 2012).Samsung operates in intense competition from growing number of competitors .All of them have strong brand equity such as LG electronics ,Whirlpool ,Nokia ,Apple and Sony. Among its several products single galaxy s devises has been huge success for Samsung.It announces that it had sold 20 million units Galaxy S...
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...Contents Introduction 4 Company’s profile 5 MISSION 5 VISION 5 VALUES 5 SWOT ANALYSIS FOR SONY CORPORATION 6 INTERNAL FACTORS 6 Strength 6 WEAKNESS 7 EXTERNAL FACTORS 8 Opportunities 8 THREATS 9 PEST ANALYSIS FOR SONY CORPORATION 9 Political Factors 9 ECONOMICAL FACTORS 10 SOCIAL FACTORS 10 TECHNOLOGICAL FACTORS 11 GAP ANALYSIS 11 Porter’s five forces model of competition analysis 12 Threat of New Entrants (low) 12 Bargaining power of suppliers (low) 12 Bargaining power of Buyers –High 13 Threat of substitutes –High 13 Threat of competitors –High 13 Conclusion and recommendation 14 References 15 Introduction Sony is a global manufacturer of audio, video, communications and information technology’s consumer and professional markets. According with Rebort S.Kaplan and David P.Norton (2007), to measure strategic readiness, identify the intangible assets you needs to perform the internal process most critical to your strategy. Then assess your current capabilities in all these areas, identifying changes needed to improve alignment. Thus, applying the above mentioned approach the Sony Company is uniquely positioned to be one of the leading digital entertainment brands, offering an outstanding portfolio of existing multimedia contents. This approach is known Balanced Score card. Balanced Scored Card doesn’t treat strategy from only a financial perspective; it augments financial measures with objectives and metrics in three additional ’’perspectives’’-Customer relationship...
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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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