STRATEGIC GROWTH OF LG ELECTRONICS

1. Focussed Plan of action and go!t" in #RIC Counties

$. Co%&ination of 'Localisation and Glo&alisation( stategies
t"oug" e)tensi*e R+, and Custo%isation E-ots to ta.e
and sta/ at to0 of e%eging %a.ets
1. Focused on uni2ue cultual and social di%ensions of t"ei
consu%es( li*es t"oug" "ea*/ R+, e%0"asis
3. Had a co%%onalit/ of 4stic.ing in t"ee5 !"en t"e going
got toug"6 and t"is in*est%ent 0o*ed to &e fuitful ti%e
and ti%e again
7. Wit" eac" count/ ca%e di-eent and uni2ue c"allenges
and c"anges t"at needed to &e done to .ee0 LG at t"e
foefont of t"e electonic !old6 constantl/ e8
dete%ining t"ei 0osition in t"ei %a.et in ode to
tailo t"ei 0lan accodingl/

W"/ intenationali9e:

;e/ s%all and

Econo%icall/ 0oo "o%e

%a.et

Constained &/ OE< tag

A%&ition to incease 0o=t

W"ee to intenationali9e:
In de*elo0ed counties>
failed to %a.e i%0act
E%eging counties !it"
"ig" go!t" 0otential
Counties !it" lo!
0s/c"ic distance to
%ini%i9e is.

Ho! to intenationali9e:
Tec"nolog/ ad*antage can &e co0ied &/ local
0la/es
Fi% S0eci=c Ad*antage ?FSA@ s"ould &e .e0t
!it" =% onl/
Ente t"oug" W"oll/ O!n Su&sidia/ ?WOS@
OLI Fa%e!o.
Ownership Advantage
Anal/sis T"oug" OLI Fa%e!o.
In0uts

Coe 0oduct fo% "ost count/ R+,

and added custo%i9ation t"oug"
locali9ed R+,

Custo%i9ation on social and cultual

di%ension

Potential to inno*ate 0oduct

E)0eience of se*ing de*elo0ed

%a.et t"oug" OE< elations"i0

Aualit/ and se*ice e)0etise

Outco%e

Go*en%ent su00ot and tust

Cate to local needs !it"out

2ualit/ co%0o%ise

Esta&lis"ed as &and of tust

#and ecognition and a!aeness

Gained signi=cant %a.et s"ae

Re0oted ince%ental sales

Location Advantage

#a9il6 Russia6 India and C"ina

Lo! 0s/c"ic distance !it" "ost

count/ e.g. Geoga0"ic distance

A*aila&ilit/ of local talent at lo!

cost

Go*en%ent fa*ou due local

0oduction

Esta&lis"ed 0la/es in de*elo0ed

%a.et
8 Wee dou&tful of t"e go!t"
0otential
8 Concened a&out sustaina&le
long te% 0o=ts

Internalization Advantage

Ris. of co0/ing t"e tec"nolog/

Ina&ilit/ of local =% to aise ca0ital

ConBict of inteest o*e 0oduct and

se*ice 2ualit/6 &and &uilding

WOS and alliance ae 0efeed o*e

licensing o!ing to %oe contol
APPROACH IN #RACIL

High import tariffs

Smuggling Grey
market Goods

Very low brand

awareness

In 1999 local
currency became
unstable
CHALLENGES
MARKETING
STRATEGY

Football Club
Sponsorship in Sao
aulo

!acked product with "

year warranty

rompt ser#ice in
case of product failure

Focus on relationship
de#elopment
APPROACH IN RDSSIA

Communist heritage

State sponsored
business enterprises

Challenging economic
en#ironment

$ussia faced a debt

moratorium

In#estment of
%1&'million haulted
CHALLENGES
MARKETING
STRATEGY

(G brand shops

)edicated retail
chains to carry (G
brand portfolio

Culture marketing
e#ents

Inno#ati#e *+C for all

seasons

,araoke with folk

music
APPROACH IN IN,IA

Geographical di#ersity

Inade-uate
infrastructure

(inguistic di#ersity

.a/ority of population
in lower rungs of the
economic pyramid
CHALLENGES
MARKETING
STRATEGY

!$IC, and .ortar

Strategy

0nline Channel1
(G23!456C0.

Sponsoring Cricket
7ournaments

Signed on (eading
film stars and !uilt
#illage school
APPROACH IN CHINA

Fastest )e#eloping
8ation

Geographic ro9imity

(abor Cost *d#antage

ADVANTAGES
STRATEGY

Same as adopted for

India and !ra:il

!uilt plants across

country to ser#e $ussia
and China

9;< of all (G
ersonnel were (ocal
Chinese

(G Village
#RIC Nations
S.N
o
Common
Strategies
BRA
ZIL
RUSSI
A
INI
A
C!IN
A
R"ASONS
1 Go*t. Su00ot Identi=ed t"e 0ulse of nation
to 0us" 0oduct
$ Local R+, Tea%s Fo local custo%isation and to
su00ot glo&al R+,
1 Afte Sales
Se*ice
Po%0t se*ice
t"oug" 0o!eed
*ans
3 Po%otion
t"oug" &ette
social
initiati*es
To connect !ell
t"oug" s0ots and
cultue t"ee&/
ac"ie*ing 'local &and( status
7 Ro&ust
,isti&ution
C"annel
To incease %ileage
and 0enetation
E Hiing Local
Talent
Local Talent
undestood local
cultue + needs
F <anufactuing
Facilit/
Fo o-eing local
custo%isation and a long
te% 0es0ecti*e