LG paper BY rlyt1001 LG is a multinational electronic company that is South Korean. The headquarters is located in Yeouido-dong Seoul. This company is broken up into 5 divisions; home entertainment, home appliances, air conditioning, and energy solutions. LG was established in 1958 as a company called “Gold star”, which eventually merged with a company “Lucky’, creating “lucky Gold star” not “Life’s Good” which is the slogan. “Lucky’ was the home appliance side and “Gold star” was the electronics side. Now LG is a multi billion dollar company that provides the 5 divisions world wide & is ecognized as one of the best in each division.
LG is very competitive in the markets of TVs, cell phones, refrigerators, and washers/ dryers. They are the second largest manufacture of TVs in the world, right under samsung. They are also the fifth largest phone company by unit sales. They have reached this spot in the world by providing an excellent product and also advertising. LG advertises through, TV, internet, sale promotions, and events. Their distribution strategy is through retail sales, online, and catalogs. Retail sales is where most of their sales are made; this is because knowledge of the product can be sserted so consumers will confidently by the LG products.
Since LG is not as well known as their main rival Samsung, Lg prices their products around the same/ little less. Samsung and LG are both headquartered in South Korea and have been rivaled since their birth. So LG’s competitor (Samsung) strengths are that they are more well known, a larger company, and the leader in technology. However, Samsungs weakness is their higher prices for very similar technology. LG’s target market is mass; they are advertently after the whole human race. But are swaying towards a premium market in cell phones; targeting the youth.
LG knows that cell phones will soon replace laptops, tablets, cameras, tVs, etc. To wrap everything up, below is LG’s Swat Analysis. SWOT Analysis Strength 1 . Wide range of products to serve all categories and a strong focus on technology and quality 2. Effective localization of product offerings for growth markets like India, Brazil, China 3. Brand offers sound rational appeal – good product features and good value for money 4. Good after sales service and wide distribution network 5. Subsidiaries enjoy independence in decision making and hence have flexibility in dapting to the local market 6.
Sponsorship of sports and entertainment events enhances visibility 7. It has nearly 100,000 employees and is one of the top mobile manufacturers Weakness 1 . Brand lacks influence in the opinionated segment of early adopters especially in the social media environment 2. Brand has limited market share compared to market leaders Works cited: Lee, joseph . “LG the company LG HISTORY. (2013): n. page. web. 12 sep. 2013.. Whitehurst, Jason. “The History Behind LG. ” Electronics. (2013): n. page. Web. 12 Sep. 2013.