Ask a question from expert

Ask now

Case study on LG Electronics

7 Pages2915 Words583 Views
   

Added on  2019-12-03

Case study on LG Electronics

   Added on 2019-12-03

BookmarkShareRelated Documents
Table 1: 5 C's Company1.1Vision :Vision statement of LG electronics is to become a worldwide leader in digital media with ensuring about the appropriate satisfaction of customers by innovative products and qualitative services (1). 1.2Mission:Mission of the company is creating valuefor customer, respecting human dignity and becoming best in its industry (4). 1.4Business division of LG Electronics:Mobile communicationDigital displayDigital media (5)Digital appliance1.5Resources:1.5.1LG electronics is operating its business worldwide with 128 local subsidiaries. 1.5.2Total available human resources are 83000 people (2).1.5.3Over 57 years it is providing best electronics product to its customers. 1.5.4All human resources are skilled and experienced (11). 1.6Infrastructure:1.6.1 LG electronics is investing huge amount of money in developing strong and huge infrastructure (4). 1.6.2It will invest US$300 million in Hai Phong to build a 400,000m2-wide home appliances factory by 2020 (7).1.7Core Competencies:1.7.1Innovative product development.1.7.2LG electronics has used the multi sourcing strategy for developing chipset which helps in adding efficiency to the overall product development process (8).1.7.3This organization has developed extensive distribution network for targeting retail outlets for developing strong brand value (3). 1.7.4Making collaborations and acquisition is one of the major strategic alliance of LG electronics.1.7.5Strong research and development is also one of the major core competencies of the organization (3).1.8Weakness1.8.1Low profit margins due to the high cost in research and development and innovation (12)1.8.2Major competitors also have large number of buyers (20).1.8.3Focus on large portfolio of products1.8.4Lawsuits of different countries. 1.9Threats:1.9.1Foreign exchange risk in different international markets (19).1.9.2Rapid changes in technologies.1.9.3Increment in the number of substitute products of competitors (8). 1.10Strength1.10.1LG is operating its businessoperations in wide geographical areawhich shows the global presence ofthe company (4). 1.10.2Strong research and developmentdepartments (3)1.10.3Comprehensive product portfolioHome entertainment Mobile communicationHome appliance (1)Air conditioningEnergy solutions (13)1.11Opportunity:1.11.1 LG electronics have started a new product line in solarindustry so, there is a huge opportunities in this segment.1.11.2 Company can grow its business in developing countries also (2).1.11.3 Company can introduce new products and services dueto the changes in current trends which will also help in getting high profitability (10). CompetitionsSonySamsung 1.12Core Competencies:1.12.1Core competencies are relevant to the whole company rather than the individual (5). These competencies help in attaining the advantages in the whole industry.1.13Core competencies: 1.13.1Continuous innovation in rapid manner.1.13.2Success Hi-Pass System (11).1.13.3Skilled and experienced staff and employees (6). 1.13.4Regular innovation and efficient management.1.13.5Strong relationship with supplier and customers (1).1.13.6It has strong relationships with different financial institutes which also help in getting strongfinance for different business operations.
Case study on LG Electronics_1
1.12.2Miniaturization with the use of electronics (3).1.12.3Innovative designs of the products and services as per the needs and requirements of customers.1.12.4Manufacturing power of Sony Corporation is also one of the major competency of this organization (6). 1.12.5Marketing and advertisementdepartment is also very strong which increases sales and profitability of the organization (7). 1.12.6Sony uses the deep technologies for producing products and services.1.12.7High quality products and services.1.12.8It is capable enough to turnout variety of products and services (17).1.12.9It also focuses on the core design products and services for different segments of the society (5).1.12.10It has strong brand image in some specific products and services such as Walkman or portable CD players which help in attaining different advantages also (12). 1.12.11Very strong research and development in terms of newtechnologies and new updates (13). 1.14 Strength:1.14.1Valuable physical assets 1.14.2Clear market advantages1.14.3Low production cost due to the strong R&D (5).1.14.4It has rich heritage of technologies expertise (13).1.14.5Quality of Sony music and Sony pictures is unbeatable in this industry (14). 1.15 Strength: 1.15.1Samsung is world’s most successful manufacture of electronics products and services. 1.15.2It has world’s number one market share with 21.4 % in second quarter of 2015.1.15.3It has impressive research and design capabilities (19).1.15.4Strong manufacturing and marketing capabilities (14).1.15.5Longstanding relationship with retailers in US and UK (15). 1 Customers: Collaborators:1.16Business Area:1.16.1Information technologies1.16.2Telecommunication1.16.3Healthcare (7)1.16.4Environment1.16.5Digital media1.17New Focus Area1.17.1Hardware and software (5)1.17.2Change in future research and development1.18Business 2 Business1.18.1Company has obtained high growth in business to business segment (2)1.18.2Company has also collaborated with different partners for providing better services to its customers (6).1.19Business 2 customers1.19.1LG electronics offers different innovative products and services to its customers for meeting their expectations. 1.17.1LG electronics has collaboration with different local and mainstream distributer (12).1.17.2To improve the quality of the products and services LG electronics have contributed withthe software and hardware companies (18).Country:
Case study on LG Electronics_2
1.18Political1.18.1LG electronics is operating its business in different countries so, political stability of every country also affect the business operations of organization (4)1.18.2Different policies of FDI and environmental protection are also major factors which affect business ofLG (18). 1.19Economical1.19.1Inflation rates, exchange rates and economic policies of every country affect the financial position of LG electronics (13).1.19.2GDP growth rate and industry trend of every nations affect the economic position of company (17).1.20Social1.20.1Changes in current trends, needs and requirements of customers affect the production and manufacturing process of LG Electronics (19). 1.20.2Lifestyles of customers 1.21Technological1.21.1Due to the high competition from Samsung and Sony Company is facing competition in technological aspects also (12). 1.21.2High research and development of competitor’s forces LG electronics to invest huge amount of money in innovation and technologies changes (8). 1.22Legal1.22.1Different countries have their own rules and regulations with respect to the joint venture and business operation. So, LG electronics needs to consider all these rules and regulations (13)1.22.2Energy regulation, employment and environment law are also considered as factors which affect the business operations of LG. 1.23Environmental 1.24Safety and security of environment through the manufacturing and production process is major aspect (18). Table 2: BM Canvas2.1Key Partners:For developing a better display LG becomes partner with Samsung. Both companies launches new phones and also put design behind the curve (18)LG and Schneider established partnership on camera lenses of mobile phones (13).LG and SIEMENS are collaborating to develop the standard control solutions for air conditioners.LG and GE agreed on cross technological licensing to share the patents on kitchenware (20).Through strategic alliance with Maxdome, LG launches a premium VOD broadband service (9).2.2Customer segments:B2B- For business purpose the retailers and whole sellers are the also customers of LG electronics (17). B2C- LG's customer service and support are designed to help and make the life good (14). To increase the customer satisfaction LG improve their customer services by reducing the queuing time and if any customer is facing problem issue with product than company solvetheir problem quickly by scheduling repair facility (16).2.3Value Proposition:Value preposition refers to aninnovation, service or features.This is used to make a companyor a product more attractive toincrease the customers. This isbasically a promise of valuewhich will be delivered andexperienced (12). LG haveachieve the highest standard forgreat design by improving theirconcept, style and interface and2.4Key Activities:LG business into mainly six core business domains:Home EntertainmentMobile Communication (16)Home ApplianceAir ConditioningEnergy SolutionsVehicle Components (15)R&D- LG is leading the electronics industry and bringing the new and updated technology and innovation like improving energy devices, wireless networks and multi-processing (11). And mobile innovations to digital media technology.2.5Key Resources: [73 to 74]The resources of LG are discussed below:Its global sales of USD 53.1 billions (7).83,432 employees are working at 119 local subsidiaries.They owns Zenith and controls 37.9% of LG display (8).Certificate standard- ISO 9001:2008They employs the talented and dedicated staff which can develop the value added products (10).2.6Customer Relationships:LG is promoting its products via social sites, magazines, promotion programs and advertisements (14). With the LG CNS customers can organize, manage and track their inquiries.They have given the toll free number to customers (2).The online support facility is also available on the websites for customers
Case study on LG Electronics_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Strategic Planning Process for Sony Corporation
|20
|1661
|484

Sony Mobile Communications Strategic Planning Process and Formulation
|20
|1684
|83

Strategic Planning Process and Analysis of Sony Mobile Corporation
|26
|1380
|346

Evaluation of Strategic Position of Sony
|18
|646
|485

LG Presentation
|11
|653
|474

Business Strategy TABLE OF CONTENTS
|13
|4270
|143