LG INDIA

Strategic Analysis

Consumer durable market

High growth Technological advancements Stiff competition MNCS Vs Indian companies

LG -Background
Gold star co.1958 LG India,official sponsor of CTV kits for
1982 Asian Games 1995- technical collaboration with Bestavision group 1995- CK Birla group 1997-LG Electronics Ltd

Vision and Mission

To be the best company in its product range To bring a smiling face to every home
across the world Corporate logo incorporate -world ,future,youth,humanity ,technology

Business environment factors

Political and legal
-budget 2000 had negative impact on industry -various pricing strategies by companies -LG tapped the custom duty relaxation and imported innovative products

BE Factors
Economic
-Rise in disposable income -Changes in custom duties and exchange rates Socio-cultural -life style improvement -high value products at reasonable price -multiple ownership

BE Factors.
Technological
-advancements -responsiveness to deal with competition -technology import route

BE Factors
Global
-dumping and competition Demographics -largest middle class in the world -quality and health consiousness

Industrial competition analysis

Bargaining power of buyers Bargaining power of suppliers Threat from substitutes Threat of new entrants Rivalry among existing players

SWOT Analysis
Strengths
-differentiation and adaptation Golden Eye, 14 CTV -innovation -Sampoorna CTV ,multilingual screen displays -promotion plan -mobile showrooms -distribution -brand image

SWOT
Weaknesses
-dealer margins, schemes -high promotion costs Opportunities -industry growth -anti dumping duty on Chinese TVs by U.S

SWOT
Threats
-competition -positioning

McKINSEY 7S FRAMEWORK

Strategy Structure Style Shared values Skills Staff system

Strategies adopted by LG
Entry Indianised face with global
technology Operations- own plant ahead of schedule Products-product adaptation strategy Segmentation-high middle class and carved a niche in a crowded segment Brand-LG , the global leader

strategies
Leadership-localisation Indians at top slots
unlike other MNCs

LGs marketing success

Extensive consumer research Strategic pricing Sharp positioning 3 more Ps -pace,people,passion

Positioning

Golden Eye TV-Wrinkle free viewing Refrigerators-PN system ACs- Health air system Washing machines-Fabricare system Microwave oven Healthwave cooking

conclusion
Success in the third attempt price sensitive Indian market to health
sensitive market Promotes quality products with innovation as major strength Turnover 1997- Rs.125 cr NOW ?