LG Electronics Inc.

(Korean: LG ) is a South Korean multinational electronics company

headquartered in Yeouido-dong, Seoul, and a member of the LG Group, employing 82,000 people
working in 119 local subsidiaries worldwide. With 2014 global sales of USD 55.91 billion (KRW 59.04
trillion), LG comprises four business units: Home Entertainment, Mobile Communications, Home
Appliance & Air Solution, and Vehicle Components.[2] CEO of LG Electronics is Bon-joon Koo, who
assumed the role of vice chairman of LG Electronics on 1 October 2010. In 2011, LG Electronics
was the world's second-largest television manufacturer.[3]

1958-1960
In 1958, LG Electronics was founded as GoldStar (Hangul:). It was established in the aftermath
of the Korean War to provide the rebuilding nation with domestically-produced consumer electronics
and home appliances. LG Electronics produced South Korea's first radios, TVs, refrigerators,
washing machines, and air conditioners. GoldStar was one of the LG groups with a sister company,
Lak-Hui (pronounced "Lucky") Chemical Industrial Corp. which is now LG Chem and LG
Households.
GoldStar merged with Lucky Chemical and LG Cable in 1995, changing the corporate name to
Lucky-Goldstar, and then finally to LG Electronics.

1970s1990s[edit]
In 1978, LG Electronics earned US$100 million in revenue from exports for the first time in its history.
Rapid growth by globalization saw the company establish its first overseas production, based in the
United States, in 1982. In 1994, GoldStar officially adopted the LG Electronics brand and a new
corporate logo. LG Electronics acquired the US-based TV manufacturer Zenith. In 1995, LG
Electronics made the world's first CDMAdigital mobile handsets and supplied Ameritech and GTE in
the US. The company was also awarded UL certification in the US.[4] In 1998, LG developed the
world's first 60-inch plasma TV, and in 1999 established a joint venture with Philips LG Phillips
LCD which now goes by the name LG Display.

2000present[edit]
In order to create a holding company, the former LG Electronics was split off in 2002, with the "new"
LG Electronics being spun off and the "old" LG Electronics changing its name to LG EI. It was then
merged with and into LG CI in 2003 (the legal successor of the former LG Chem), so the company
that started as Goldstar does not currently exist.

Products[edit]
LG Electronics' products include televisions, home theater systems, refrigerators, washing
machines, computer monitors, wearable devices, smart appliances and smartphones.

Home appliances[edit]
LG manufactures and sells home appliances such as refrigerators, washers and dryers, vacuum
cleaners, kitchen appliances, and air conditioners. In June 2014, LG Electronics also announced the

launch of its smart appliances with HomeChat messaging service in South Korea. HomeChat
employs LINE, the mobile messenger app from Korean company 'Naver', to let homeowners
communicate, control, monitor and share content with LGs smart appliances. [30] Users can send
simple messages, such as "start washing cycle," in order to control their washing machines.[31]

Swot analysis of company

Strengths in the SWOT analysis of LG electronics
1. Global Giant: LG Electronics controls 114 local subsidiaries worldwide, with roughly
82,000 executives and employees. LG is an MNC and is a well-recognized brand which
deals in white & brown goods. It has always been known for its simple design, easy to
use, Innovative & reliable technology.
2. Extensive distribution system: LG being a fast moving consumer durable company
makes its products available in the markets through its distribution partners. Because
of its pull strategy, LG observes very fast stock rotation but also has to use dumping
of stocks to the channel partners. It uses Glo-cal strategy (be global act local) to
market its products.
3. Diversified products across the categories: LG has a huge product line and length
across the product categories both in white & brown goods.
4. High TOMA: Through its continuous branding efforts, sponsoring sporting & lifestyle
events like ICC cricket world cup, Formula one championship, soccer matches etc. LG
has created high visibility and thus is successful in its branding efforts.
5. CSR activities: LG has always been involved in community work so as to involve the
people in the co-creation of the wealth.
6. Brand equity The long term presence of LG in the market, along with their amazing
product strategies, and reliability on their products has ensured that LG has a strong
brand equity, and hence is able to survive in a tough business environment.
Weaknesses in the SWOT analysis of LG electronics
1. Management: Due to its extensive presence in the white & brown goods market they
are not able to focus on every single product category properly due to which they are
losing their market share in several products like T.V, Refrigerator etc.

2. No Cash cows Samsung has amazing brand equity due to its smart phones and
smart TVs. Similarly, most brands have a super hit product which is a cash cow.
However, in LG, there is hardly any product which is a cash cow for them.
Opportunities in the SWOT analysis of LG electronics
1. Changing lifestyle: Growing urban population, Rise in disposable income, shift
towards technological products & migration from rural to urban areas are some of the
factors that will be the driving force for the home appliances, electronics goods
2. Competitors helping in the adaptation of the new technology: Intense competition in
the industry is helping LG in making their products acceptable to the society. So LG
can leverage out benefit of this & can increase their market share by considering
competitors move.
3. Market Expansion: By further penetrating to the emerging markets will help the
company in accelerating its growth rate.
4. Strategic Partnership: Till now LG has been involved in the collaborative partnership
with many companies. It is making technology advances and identifying business
opportunities through various partnerships relationships with some of the worlds
leading companies. Strategic alliance between corporations in which companies with
different infrastructures cooperate in the fast-developing.
Threats in the SWOT analysis of LG electronics
1. Intense rivalry within the industry: Every company in this industry is fighting hard to
make their presence felt & hold their market share. Majority of the players in the
industry follows red ocean strategy in order to kill the competition which is affecting
the industry as a whole.
2. Stagnant Urban demand dynamics: Since more & more companies are venturing out
in the over competitive urban market, there is little growth left in these markets, so
over dependence on these market will be riskier for the company like LG.
3. Government Regulations: Government policies relating to use of innovative
technology for energy & power conservations is by & large affecting the industry &
forcing them to switch to renewable sources of energy.
4. Sluggish Economy: Macroeconomic uncertainty, Recession, un-employment etc. are
the economic factors which will daunt the industry for a long period of time.
5. Rising Raw material cost: Due to rising raw material prices & labor cost, LGs margins
are shrinking which is making the business operations less profitable.

1. 23. S.W.O.T. ANALYSIS STRENGTHS Market leader in home appliances. Has got
manufacturing unit in tax incentive . Wide range of products to serve all categories. Widest
distribution network in the industry(47 barnches,10000 trade partners). Good after sales
service offered. WEAKNESSES Samsung being its competitor provides similar products.
Consumers compare L.G with Samsung its Korean rival not with other global companies.
Lack of expert operators for complex machines due to illiteracy and lack of training in India.
2. 24. OPPORTUNITIES Fast growth of the home appliances market Shifting to rural areas
Thus maintaining control over the market and the highest share in home appliances market
THREATS Close competitors like Samsung are compared to it. Price war with Samsung.
Competition from Indian brand and other foreign brands.

Growth of lg washing machine

The home appliances division of LG Electronics India is targeting net revenues of Rs 1,800
crore from its washing machine category by this calendar year.
We expect to achieve Rs 6,000 crore net revenue by this calendar year from the home
appliances division, a growth of 18 per cent over last year, including Rs 1,800 crore from the
washing machine category, said Rajiv Jain, business head (home appliances), LG
Electronics India Private Limited, the wholly-owned subsidiary of LG Electronics.
The washing machine market in India is estimated to be about 30 per cent of the total Rs
16,000-crore home appliances market which is of about Rs 5,000 crore.
The home appliances market has been sluggish this year and certain segments including
the double-door refrigerator and microwave oven had seen negative growth, he said, adding
the washing machine market in India was, however, is seeing a double digit growth of about
18 per cent.
The washing machine market is expected to retain its growth in the coming years with the
growing penetration level in the country, he said. The penetration level for this category has
grown to 7 per cent this year from 5.5 per cent last year. The company expects good growth
in the front loading category.
The front loading washing machine category contributes 10 per cent to the overall washing
machine market in the country. This category contributes about 70 per cent in developed

countries like the US and Europe. We expect this segment to grow in India in the coming
years, Jain told Business Standard.
He said they were hopeful to retain 37 per cent market share in home appliances by shifting
focus to more high-end premium products. Of LG Indias total revenue, refrigerator category
contributes 60 per cent, while washing machine and cook and clean segments contribute
about 30 per cent and 10 per cent respectively.