Strengths

Based on the attached text and other available sources analyse the current situation of the company's situation of the LG Group on global market using a SWOT analysis.

This paper is about LG electronic Multinational Corporation. It provides PEST analysis, SWOT analysis and marketing mix element. LG’s uniqueness is represented from its groundbreaking approach to business. Koo In-Hwoi is a minor businessman established the company in 1947. In 1952 Lak-Hui became the first Korean company to enter the plastics industry. LG was originally established in 1958, as Goldstar, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG group was an integration of two Korean companies Lucky and Goldstar, from where the abbreviation LG was derived. Currently, LG is Multinational Corporation with its headquarters in Seoul in South Korea. The company consists of various allied inferior firms. LG electronics is the most recognized subsidiary of the multinational corporation.(1)

The company operates in the consumer appliances and consumer electronics industry, manufactures, and markets a range of products that include TV’s, Mobile Phones, and Washing Machines among other things (Institute of Marketing, 2009). The company is centered wholly on the consumer electronics section and given its spirited edge the company has managed to gather the uttermost market share for itself. The rise of the company has been equivalent to the growth of the alleged “Asian Tigers” (the countries of South-East Asia). It has productively influenced the thriving global market for consumer electronics and has dealt with staying on top of the competition. LG is one of today's leading brands in electronics, from personal to home entertainment audio and video system, communications gadget, broadcasting and other professional electronic devices, personal computer, digital camera. LG’s Vision is to become a worldwide leader in digital that ensures customer satisfaction through innovative products and superior services.LG's missions are to create value for customers, to respect human dignity and obviously to become best in its field.

SWOT analysis

Strengths

This section provides an evaluation of strengths, weaknesses, opportunities and threats to LG multinational company. The success of firm can be attributed to the strengths that in the business environment. The company was able to utilize the above situations to their advantage. LG is one of the major electronic company-manufacturer, producer in the world with a wider distribution and market. LG has a competitive advantage because it is very innovative, with advance technology such as the smart technology. It’s a development philosophy that embraces sensitive communication with customers in order to provide products that everybody wants to use, and easily can. This customer-oriented principle has become the most important development philosophy for LG, a result of collecting customer feedback and applying it to its products. The company is technologically well ahead giving it an added advantage over its competitors. LG has wide range of products to serve all categories and a strong focus on technology and quality. This one is really important strength. Technology enables LG to produce a lower cost and increase the quality of their output. These positions LG company at the forefront of competition accordingly to the perfect depiction of strength utilized by the company to expand productivity.

LG Company enjoys economies of scale, which increases the production efficiency with regard to volume of goods produced. Company that is vulnerable for enjoying economies of scale experience a reduced cost of production per unit. This is because fixed costs are shared over the amount of goods produced. LG being one of these firms enjoys lower production costs attributed to larger economies of scale (2). Additionally, its current ranking shows that it is the most beneficiary of this strength making it outperform competitors down the line with lower economies of scale. The large economies of scale also offer LG access to larger market by suiting them to trade in wider geographical reach. However, the implications are different in small to medium companies, which start to experience high costs of production leading to losses and restricting growth.

LG has effective localization of product offerings for growth markets like India, Brazil, China. LG has available resources in form of labor. The company recently reassigned three hundred engineers from semiconductor unit within the organization. This reassignment resulted development of products of high quality and above competitors technology. Other companies such as Sony and Samsung buy semiconductors from LG to be used in their 3D market and manufacture of 3D televisions. It has nearly 100, 000 employees and is one of the top mobile manufacturers. Currently, the company has various research centers worldwide.