LG Presentation: Strategy, Competition, and Change Management

This presentation provides an overview of LG's strategic positioning and competitive landscape, highlighting its focus on innovation and technological advancements in consumer electronics, particularly in mobile communication and home appliances. It assesses LG's revenue growth, net profit...Read More

LG Presentation

Introduction
 LG is one of the global consumer electronic providers that focuses
on innovation and technological up-gradation.
 Company mainly deals in mobile communication tools and home
appliances for the better success.
 It is one of the world’s leading producers of flat panel TVs, mobile
devices, air conditioners, washing machines and refrigerators.

Positioning
 As per the structured study, it can be said that organizations is
having growth in the home appliance sector.
 Revenue and net profit of LG are also increasing year by year that
also creates better competitiveness in the market.
 Company is facing high level of competition in the environment
due to working of big giants like Samsung, etc.
 Organization is also looking forward for various developments in
its work style so that further developments in telecommunication
sector can be taken into account.

Contd...
 Due to rapid changes in customer’s needs, company faces issues
that also impact its work environment.
 Cash flow of organization has also decreased due to less emphasis
on the ROA.
 Technological innovation in products is one of key strengths that
company has used for better accomplishment of organizational
goals.

Advantages of chaebol
There are number of advantages of chaebol that organization
attains:
Economics of scale and scope
Knowledge and experience on diversified business
Reputation and brand name

Sucess factors
 Management of LG also focuses on competitive strategy to gain
success effectively.
 With an assistance of SPACE matrix, management is attaining
better development opportunities.
 Eco system and Twos analysis are also creating better opportunities
for the organization.
 SAF matrix also facilitates business to create differentiation
strategy and leads business to the impressive level of success.

KPI comparison with competitors in
telecommunication sector
Factors LG Samsung Sony
Revenue Low profit in the
industry
High ratio of profit as
compared to other
competitors
Low profit as
compared to
Samsung but high in
respect to LG.
Workforce Skilled workforce Highly experienced
and skilled
workforce
Committed
workforce
Financial
conditions
Improvement in
financial aspects
Stable Not Stable
Technological
developments
Continuous
development and
innovation
Continuous
development and
innovation
Low focus on
innovative products
After sales service Good customer
service but needs
improvement.
Enhanced customer
service
Good customer
service

Contd...
Number of outlets Number of official
outlets is low but
number of other
distribution channels
are high.
Easy availability of
outlets that creates
satisfaction for
customers.
Low availability of
outlets
Market share Average market
share
Hold highest ratio in
the market
Low market share
Sales Sales of company is
low
High sales Average sales as
compared to
standard
R&D Continuous
improvement
High investment on
R&D
Low focus on R&D

Execute Change
 Structure
 Skills
 Shared values
 Strategy
 Staff
 Systems
 Style

Change theories
There are few additional ways that can be followed by the
organization for better execution of change.
Programmatic change
Discontinuous change
Emergent change

References
Diefenbach, T., 2010. The managerialistic ideology of organisational
change management. Journal of Organizational Change Management.
20(1). pp.126-144.
Higgins, J. M., 2015. The eight ‘S’s of successful strategy execution.
Journal of Change Management. 5(1). pp.3-13.
Christensen, J. F., 2013. The industrial dynamics of Open Innovation—
Evidence from the transformation of consumer electronics. Research
policy. 34(10). pp.1533-1549.
Lee, S. H., 2009. Strategic choice during economic crisis: Domestic
market position, organizational capabilities and export flexibility.
Journal of World Business. 44(1). pp.1-15.