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INTRODUCTION TO LG

LG Electronics India Pvt Ltd,a subsidiary of LG Electronics, SOUTH KOREA.

It is South Korea's second largest electronics maker and the world's third largest

appliance maker.

Headquarter : Seoul, South Korea

Key People: Koo Bon-Moo, CEO.

The company has 75 subsidiaries worldwide that design and manufacture

televisions, home appliances, and telecommunications devices. LG Electronicsowns Zenith Electronics and controls LG Displays, a joint venture with Philips

Electronics.

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INTRODUCTION TO LG

The company was originally established in 1958 as GoldStar, producing radios,

TVs, refrigerators,washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and GoldStar, from

which the abbreviation ofLG was derived.

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Key Dates

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Key Dates

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Key Dates

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Joint Ventures and Acquisition

LG has made a Joint Venture and created LG-Nortel Network.

Joint ventures with Royal Philips Electronic.

LG also has a joint venture with Hitachi.

LG acquisition finalizes over Hyundai Petrochemical.

LG acquired Zenith in 1999.

LG Electronics,Zenith,signed VSB licensing agreements with Japans MITSUBISHI

& SHARP in March-2005.

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Recent Merger & Acquisitions

LG-CALTEX Oil Corp. Merged with HOYU Shipping in 2000.

In 2006,LG Chemicals acquired and Merged with LG Daesan Petrochemical.

LG Electronics forms strategic alliances with Home Depot, the world's largesthome improvement retailer in January 2005.

A.S.WATSON, The retail division of Hutchison Whampoa Ltd. Joint ventured with

leading Korean retail Company LG MART Company.

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Vision

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PRODUCTS OF LG

Business

areas

Products

Consumer

Electronics

LCD TV , Plasma Display , Display Panel,

Color Television, Home Theatre System,

Music system, DVD Recorder/Player, MP3 &

MP4 Player

Home Appliances Room Air Conditioner, Commercial Air

Conditioner , Refrigerator, Washing Machine,

Dishwasher, Microwave, Vacuum Cleaner

Computer

Products

Laptop, Personal Computer, LCD monitor,

CRT monitor, Optical Storage Devices

Mobile Phone Premium trend setter phone , Camera Phone

, Music Phone , Color Screen GSM Handset

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Targeting

LG has targeted the market on the basis of the product that they are offering to the customer.

They are targeting to those consumer who are more concern of the life style product.

The product is more of upper middle class.

Target audience are those consumers who want quality product as the best price.

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SWOT Analysis

Strength

- Market leader in home appliances segment

- Wide range of product categories to tap the consumer of middle class, upper middle class.

- LG having the widest distribution network in the industry (47 branches,175 area offices and

over 10,000 trade partners).

- Shifting to the rural market.

Weakness

- Consumer compare LG products only with Samsung and not with any other brand.

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SWOT ANALYSIS

Opportunity

- Shifting to rural market

- Control over the white goods market, as we know the highest market share in home

appliance market.

Threat

-The closet competitor of LG ,Samsung is also from South Korea.

- Price war with its closest competitors, Samsung

- Competitors from Indian brands and from new entrants

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Competitors Of LG

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Competitive Analysis

Market Share

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Competitive Analysis

The market share and data shows that Samsung is the main competitors of LG electronics in

India.

The target audience of both companies are same.

Product category are more or less same.

Close fight between the two companies.

Price war with its closest competitors, Samsung

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Competitor Samsung

Initially the strategy of Samsung in India

was to create premium image by

emphasizing global brand.

After facing stiff competition from LG,

Samsung also started playing price

game.

In 2004 it reverted back to its premium

positioning, although it resulted in some

loss of market share.

In line with the Global Digital Initiative of

the Parent Company, Samsung India isseeking to acquire digital leadership in

India by introducing its digital ready

televisions like the 40" LCD Projection TV,

43 Projection TV and the Plano series of

Flat Colour televisions.

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Thank You

Lifes Good