LG Electronics - Global Strategy in Emerging Markets
For the exclusive use of J. LAU
TB0073
August 17, 2007
Kannan Ramaswamy
LG Electronics: Global Strategy in Emerging Markets
Mr. Nam Woo, President of LG Electronics (LG), was collecting his thoughts after the press conference in Beijing. He had been appointed as the President of LG Electronics in China in 2006 and was unveiling an ambitious agenda to accelerate LG’s presence in the country. He reflected on the emergence of
South Korea as a major hub in the consumer electronics business and the role that LG had played in the rapid transformation. Having spearheaded a significant part of LG’s forays into emerging markets such as Brazil, Russia, China, and India, Mr. Woo had synthesized some crucial lessons that he would have to bring to bear as China moved up the scale in economic importance. He had told the press that LG would target local Chinese managers to fill at least 80% of its managerial ranks shortly. “We want to make China a strategic base for our business, so we must be a leader not only in sales, but also in research and development and in localization.”1 It was a classic summary of the essence of LG’s success in emerging economies.
LG had bet an important part of its future on success in emerging markets. It had entered countries such as Brazil, China, and India fairly early in its evolution, and those investments were providing healthy returns. In many of these markets, LGE had emerged as the market leader and was setting the trend for other competitors to follow. Many believed that the company was defining the broad contours of successful global strategy for a multinational from the developing world. However, LG realized that it had to demonstrate success in developed markets to rightfully claim its position among the leading global consumer electronics and appliance manufacturers. Having conquered the major emerging markets, what would LG have to do in order to breach established markets such as the U.S. and Western
Europe where the global giants
TB0073
August 17, 2007
Kannan Ramaswamy
LG Electronics: Global Strategy in Emerging Markets
Mr. Nam Woo, President of LG Electronics (LG), was collecting his thoughts after the press conference in Beijing. He had been appointed as the President of LG Electronics in China in 2006 and was unveiling an ambitious agenda to accelerate LG’s presence in the country. He reflected on the emergence of
South Korea as a major hub in the consumer electronics business and the role that LG had played in the rapid transformation. Having spearheaded a significant part of LG’s forays into emerging markets such as Brazil, Russia, China, and India, Mr. Woo had synthesized some crucial lessons that he would have to bring to bear as China moved up the scale in economic importance. He had told the press that LG would target local Chinese managers to fill at least 80% of its managerial ranks shortly. “We want to make China a strategic base for our business, so we must be a leader not only in sales, but also in research and development and in localization.”1 It was a classic summary of the essence of LG’s success in emerging economies.
LG had bet an important part of its future on success in emerging markets. It had entered countries such as Brazil, China, and India fairly early in its evolution, and those investments were providing healthy returns. In many of these markets, LGE had emerged as the market leader and was setting the trend for other competitors to follow. Many believed that the company was defining the broad contours of successful global strategy for a multinational from the developing world. However, LG realized that it had to demonstrate success in developed markets to rightfully claim its position among the leading global consumer electronics and appliance manufacturers. Having conquered the major emerging markets, what would LG have to do in order to breach established markets such as the U.S. and Western
Europe where the global giants
Cited: in P. R. Sinha. 2005. Premium marketing to the masses: An interview with LG Electronics India’s Managing Director TB0073 This document is authorized for use only by Justin Lau in (BUSS325_2013) Korean business and managment in the TB0073 This document is authorized for use only by Justin Lau in (BUSS325_2013) Korean business and managment in the