LG SWOT Analysis and Marketing Strategies

The companies employ a range of strategies to be the market leaders in their specific industries. Precisely, most firms derive their competitive advantages from maintaining an efficient supply chain, using advanced marketing and pricing strategies as well as developing products and services that resonate well with their customers. The consumer electronics sector is one such industry that has been receiving significant attention in then recent years. The primary objective of this report is to critically analyze the consumer electronics industry with a particular focus on LG (Lucky Gold Star) which is one of the largest multinational electronics manufacturing company based in Korea. Company Description LG is a renowned multinational firm dealing with the manufacturing and selling of consumer electronics. 4% in 2005, but it kept on declining as competition became more intense.

The company faces a strong competition from electronic manufacturers such as Sony and Samsung, even though no player has a product differentiation. The key competitors engage in a cut-throat competition depending on who is the first to adopt and bring in innovation. The development in the manufacturing and electronics technologies seems to be the cutting edge. The competitors are also coming up with the most appealing and eye-catching advertisements as a marketing gimmick to attract a wide segment of customers (Timmers, 2000). LG and its suppliers have entered into cooperate agreement by becoming their stakeholders. The company’s vendors mainly supply equipment components which are required for the manufacture of the electronic products. The cooperate agreement between LG and its suppliers ensures that the firm receives a continuous supply of quality equipment at a low cost while the suppliers are kept onboard during product development.

Since the suppliers are many and LG purchases in bulk, their bargaining power is highly limited. The switching cost of the suppliers for LG is moderately low, and thus the suppliers’ bargaining power against LG is moderately low. Precisely, there are no alternative products on the market that can cause any significant threat to LG Company. Since there is the low threat of substitutes in the electronic market, LG should not worry about its products being substituted. Fig. 1: Porter’s Five Forces Model Analysis for LG LG’s SWOT Analysis Strengths • Wide range of product portfolio with a strong focus on technology and quality. • Ample market due to effective location of its product offerings. LG has invested heavily in promoting its products in a highly competitive market.

The company uses various channels to advertise its products including both digital and traditional platforms. Other channels include outdoor advertising, through print media, online advertising as well as on television. Furthermore, LG also uses its websites and micro-websites to market its brands to the regional markets. On its websites, customers access useful information regarding the products strategy as well as other aspects of its business operations. It has rebranded its image making it a smarter brand with a smart face. Furthermore, the company is positioning itself as adopting the most competitive pricing strategies on its products. LG focuses on making its brand outstanding among the competitors based on pricing and quality as a key marketing strategy. Precisely, the company is positioning itself as a futuristic brand, focusing on developing unique products with innovative technology dedicated to improving human lifestyle.

LG’s Marketing Mix Price LG has been enacting various pricing strategies to respond appropriately to the increasing market dynamics. Promotion LG company’s promotional strategies aim at making its range of product portfolio known to customers and increase sales. The promotion of the company’s products is cognizant of the diverse cultures across various countries. Furthermore, the advertising of the products is specific to the individual brand to ensure it is specific to the target market. LG has designed its promotional strategies to increase sales while at the same time its competitive edge in the electronics industry. Place LG has earned a good brand reputation worldwide for producing quality products and offering them in the market with competitive prices. Thirdly, the company must focus on employing specialists with innovative skills to manufacture innovative technological products.