Strategy Marketing and Communications ¡V a Case of Lg Electronics
Introduction
Leading mobile phone companies such as Samsung, LG Electronics and SonyEricsson are rushing to introduce strategic handsets, aiming to win a larger chunk in the market. In the fiery competition space, LG Electronics has introduced its first black-label (premium label) mobile phone which called ¡§Chocolate¡¨ for the competition, and tried to use its new marketing strategy for spreading into a new market place that no one has took up before. This report first of all will start from over viewing LG Company and its strategy by present. Secondly will go into specifically to analyze the strategy which on launch its ¡§Chocolate¡¨ model and its competitors, and also to analyze the feasibility of its strategies through understanding its strength and weakness. Finally, the report will apply the key factor to its global capability, to discuss the further modification and development opportunity.
LG Company Overview
In 1947, LG Group founder Koo In-hoe established Lucky Chemical Industrial Corp. (currently LG Chemicals) in South Korea, LG initially manufactured a cosmetic called Lucky Cream. After 50s to the end of 70s, LG established its other business more widely into different areas. Now LG is a manufacturer which field in three main businesses which are Electronics, Chemicals, and Telecommunications & Services (LG official website). The company is based in Seoul, South Korea, they are operating around 130 subsidiaries around the world with around 120,000 employees in 2005. The company recorded revenues of KRW84 trillion during the fiscal year ended December 2005, an increase of 21.2% over 2004. The increase was primarily attributable to the increase in revenues from the telecommunication equipment and handset segment, and they plan to reach the sales of KRW92 trillion in 2006 (LG official website). For the LG Electronics aspect, that we are going to focus on in this report, according to its 2004 Annual Report, they represented they achieved KRW 9.5
Leading mobile phone companies such as Samsung, LG Electronics and SonyEricsson are rushing to introduce strategic handsets, aiming to win a larger chunk in the market. In the fiery competition space, LG Electronics has introduced its first black-label (premium label) mobile phone which called ¡§Chocolate¡¨ for the competition, and tried to use its new marketing strategy for spreading into a new market place that no one has took up before. This report first of all will start from over viewing LG Company and its strategy by present. Secondly will go into specifically to analyze the strategy which on launch its ¡§Chocolate¡¨ model and its competitors, and also to analyze the feasibility of its strategies through understanding its strength and weakness. Finally, the report will apply the key factor to its global capability, to discuss the further modification and development opportunity.
LG Company Overview
In 1947, LG Group founder Koo In-hoe established Lucky Chemical Industrial Corp. (currently LG Chemicals) in South Korea, LG initially manufactured a cosmetic called Lucky Cream. After 50s to the end of 70s, LG established its other business more widely into different areas. Now LG is a manufacturer which field in three main businesses which are Electronics, Chemicals, and Telecommunications & Services (LG official website). The company is based in Seoul, South Korea, they are operating around 130 subsidiaries around the world with around 120,000 employees in 2005. The company recorded revenues of KRW84 trillion during the fiscal year ended December 2005, an increase of 21.2% over 2004. The increase was primarily attributable to the increase in revenues from the telecommunication equipment and handset segment, and they plan to reach the sales of KRW92 trillion in 2006 (LG official website). For the LG Electronics aspect, that we are going to focus on in this report, according to its 2004 Annual Report, they represented they achieved KRW 9.5