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LG Corporation: History and SWOT Analysis

LG Corp was founded in 1947 in South Korea as Lak-Hui Chemical Industrial Corp, later becoming LG Chem which entered the plastics industry. In 1958, Gold Star Co was established, later merging with Lucky to form Lucky-Goldstar. Gold Star produced South Korea's first radio. In 1995, Lucky-Goldstar was renamed LG to better compete internationally. LG has diversified over the years through joint ventures and acquisitions, becoming a leading producer of consumer electronics, chemicals, and telecommunications equipment.

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0% found this document useful (0 votes)
102 views36 pages

LG Corporation: History and SWOT Analysis

LG Corp was founded in 1947 in South Korea as Lak-Hui Chemical Industrial Corp, later becoming LG Chem which entered the plastics industry. In 1958, Gold Star Co was established, later merging with Lucky to form Lucky-Goldstar. Gold Star produced South Korea's first radio. In 1995, Lucky-Goldstar was renamed LG to better compete internationally. LG has diversified over the years through joint ventures and acquisitions, becoming a leading producer of consumer electronics, chemicals, and telecommunications equipment.

Uploaded by

Manish Nahar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

INTRODUCTION ABOUT LG

LG Corp. founder Koo In-Hwoi established Lak-Hui Chemical Industrial Corp. in


1947. In 1952, Lak-Hui (pronounced "Lucky", currently LG Chem) became the
first Korean company to enter the plastics industry. As the company expanded its
plastics business, it established Gold Star Co., Ltd., (currently LG Electronics Inc.)
in 1958. Both companies Lucky and Gold star merged and formed Lucky-Gold
star.

Gold star produced South Korea's first radio. Many consumer electronics were sold
under the brand name Gold Star, while some other household products were sold
under the brand name of Lucky. The Lucky brand was famous for its line of
hygiene products such as soaps and HiTi laundry detergents, but most associated
with its Lucky and Perioe toothpaste.

In 1995, to better compete in the Western market, the Lucky-Goldstar was renamed
"LG", the abbreviation of "Lucky-Goldstar". More recently, the company
associates the letters LG with the company tagline "Life's Good" This tagline came
from Australia, where many of the products are tested first by LG. Since 2009, LG
also owns the domain name [Link].

In 1996 LG formed a joint venture with [Link] joint venture was later
terminated. On 1 April 2000, LG Chemical was split into three separate companies,
namely LGCI, LG Chem and LG Household & Health Care. Later, in July 2007,
LG Chem merged with LG Petrochemical. Since 2001 LG has two joint ventures
with Royal Philips Electronics: LG Philips Display and [Link] LCD, but
Philips sold off its shares in late 2008. In 2005, LG entered into a joint venture
with Nortel Networks, creating LG-Nortel Co. Ltd.

LG has a joint venture with Hitachi, Hitachi-LG Data Storage, which makes
optical data

storage

devices like DVD-ROM drives, CD

writers,

etc.

LG

acquired American television manufacturing company Zenith in 1999. LG has


owned the LG Twins baseball club in Seoul, South Korea since 1989. The stocks
are separated into four parts, 52% are owned by the CEO, 22% are distributed and
the other 26% are owned by the next generation CEO who's currently attending a
university in Orlando, Florida getting her degree in business and Recording Arts.
The company logo of LG features the letters L and G, presented in the form of
a smiling human face. Commodore Business Machines, rebranded products
of GoldStar, Philips, Magnavox mostly monitor displays.

SLOGAN & LOGO

The Face of the Future: The meaning and inspiration behind LGs logo [Link] letters L
and G in a circle symbolize the world, future, youth, humanity, and technology. Our
philosophy is based on Humanity. Also, it represents LGs efforts to keep close relationships
with-our-customers-around-the-world.
Therefore, the shape or the color of this symbol must never be changed.
FACE
The stylized image of a smiling face is meant to convey company friendliness and
approachability. That the portrait is one-eyed conveys LGs profile as goal-oriented, focused, and
confident.
CIRCLE
The circle represents the globe, symbolizing the world and all of humanity, as well as youth and
the future
SHAPE
The upper-right corner of the LG logo, intentionally left blank, makes the design distinctly
asymmetrica nod to LGs creativity and adaptability to change.

COLOURLG Red, the main colour, symbolizes friendliness, and is also


meant to convey LGs commitment to delivering the best. LG Gray
represents technology and reliability

HISTORY OF LG
The trajectory of LG Electronics, its growth and diversification, has always been
grounded in the company ethos of making our customers' lives ever better and
easier-happier, even-through increased functionality and fun.
Since its founding in 1958, LG Electronics has led the way to an ever-more
advanced digital era. Along the way, our constantly evolving technological
expertise has lent itself to many new products and applied technologies. Moving
forward into the 21st century, LG continues to on its path to becoming the finest
global electronics company, bar none.

LG Electronics 50-year History

VISION

LG Electronics continues to pursue its 21st century vision of becoming a worldwide


leader in digitalensuring customer satisfaction through innovative products and
superior service while aiming to rank among the worlds top three electronics,
information, and telecommunications firms by 2010.

On our way, we hold tight to a philosophy of "Great Company, Great


People," underscoring our belief that only great people can create a great
company.
LG strives for greatness in what we've identified as our three core capabilities:
Product Leadership,

Market

Leadership,

and

People

Leadership each

strength a key part of realizing our growth strategies for "fast innovation" and
"fastgrowth".
LG Electronics is pursuing the vision of becoming a true global digital leader,
attracting customers worldwide through its innovative products and design. The
companys goal is to rank among the top 3 consumer electronics and
telecommunications companies in the world by 2010. To achieve this, we have
embraced the idea of Great Company, Great People, recognizing that only great
people can create a great company.

SWOT ANALYSIS
SWOT is the tool to see that where organization stands, which areas required
improvement, which areas required serious consideration, which would be the
source of growth, which things need avoidance and so on. The SWOT of LG will
help to understand the position of LG in the market.

Strengths
LG showrooms products are reliable, easy to use, and have simple designs which
satisfy customers thats why LG have the advantage of having loyal customers.
In LG showrooms Corporation the research and development has given greater
importance because to satisfy the customers and provide the customers what they
want the research and development id required.
LG showrooms try to keep products innovative to attract the customers and to
capture more market share.
LG is at its growing stage and its growing quickly. It is producing solid products
which rapidly satisfying the customers.

WeaknessesThe big weakness of LG showrooms is that it has very few


competent employees mostly are not skilled and also there is no training and
development concern for employees.

Opportunities

The electronic market is expanding rapidly which is a great opportunity for LG


showrooms to expand itself in new market and to capture more market share. It
also can expand its target market geographically and socially both by introducing
new products in existing market and existing products in new markets.
Through the innovation in existing products it can attract more customers because
at present it is behind the market leadership so to become a leader it has to make
innovations to attract potential buyers and retain existing customers.

Threats
As the competitors of LG are more dominant in the market and continuously
improving their products so they can take away the existing customers of LG
showrooms so it has to work very hard to retain and attract [Link] people
are facing difficulties in satisfying basic and needs so how they can spend on
electronics which is considered as luxury [Link] situation can affect the sales
of the company. electronic market.

AWARDS
As LG is declared one of the most awarded brand by all. Be it the critic, the market
or by you. At LG we believe each one of these awards truly belongs to you as they
are reflection of your trust & satisfaction, not to mention our stringent quality
control & process like 6 sigma to give you the best of the products that meets
global standards.

Award Name

Awarded By

Yea

A&M Magazine

r
199

A&M Magazine

8
199

Durable A&M Magazine

9
199

Most Admired Company in India


Most Admired MNC
No.1

Consumer

Company
Best Marketing Company
Most Ethieal MNC

A&M Magazine

9
199

Business World

9
199

Techies Award Best Flat Screen Computer World

9
200

Monitor
3rd Largest Exporter

ESC2001

0
200

Best Employer

1
Business Today/ Hewitt 200

Best Employer

Assts
1
Business Today/ Hewitt 200

Enterpreneur of the year

Assts
Ernst & Young

2
200

Gold Rating for Environmental CII

2
200

Performance
No. 1Awareness Award.

3
200

Business Today

OBJECTTIVE OF THE STUDY

To know about show rooms of Lg in sagar.


To find out which product is mostly used in sagar city.
To study the Public opinion of show rooms of Lg in sagar.
To study showrooms of Lg in sagar.
To swot analysis of show rooms of Lg in sagar
To find out which media influence most public about
Showrooms of Lg in sagar.
To find out public loyalty about show rooms of Lg in sagar.
To study the endorsement of show rooms in sagar.
To study the how many show rooms of Lg in sagar .

RESEARCH METHODOLOGY

The research word is a combined word of two words first


isre and second is search means to search again.
The main function of search is to add new knowledge. In
simple words research can be defined as critical investigation search for
truth fact or for certainly.
Research methodology is a way to systematically solve the
research problem. Research in common place refers to a search of
knowledge. Research is an original contribution to the existing state of
knowledge making for its advancement. The role of research in several
field of applied economics whether related to business or economy as a
whole has greatly increased in modern times.
Research methodology is a careful investigation or inquiry
and especially the search for new fact in any branch of knowledge.

RESEARCH DESIGN

Research design is the arrangement of condition for collection and


analyzing data in a manner that aims to combined relevance to research
purpose with economy in procedure.

Every survey report conducted scientifically has specified frame work


for controlling data collection. This frame work is called research
design.
The present project is exploratory types of research. It helps to
gain a new insight into the problem.
Research design is needed because its facilities the smooth
sailing of the various research operations there by marketing research
problem as possible yielding maximum information with minimum

expenditure of effort, time & money. As this is a descriptive study so I


have chosen the research design which suits this study.

There are two types of research design:-

(a)
(b)

Conclusive research
Exploratory research

A. CONCLUSIVE RESEARCH

(1) Descriptive research: descriptive research lies in the


formality it offers with respect of data collection & analysis.

There are two type of descriptive research:

(a)
(b)

Statistical method
Case study method

(2) Experimentation: in this method certain factors in the


marketing situation are controlled to see the effect on certain
factors establish cause effect relationship.

(B) EXPLORATORY RESEARCH: It helps to discover new


relationship & ideas. The research imagination is the key factor
however three lines to attack may help in finding hypothesis of
value.
Exploratory research is that in which new relationship
are discover & looking to the objective of research that is
finding out the most dominate attributes & also the market
leader in respect of services.

DATA COLLECTION:
The method used to collect the data is from primary sources. This
method is appropriate as compared to secondary data available looking
to objective of this research report. The method used to collect data is a

survey in which questionnaire is prepared & is given to the respondent


to fill it. It is not possible to collect information from observation
because in observation one catches the physical activities of person but
looking to the objective this research based on customer preference.
There are two types of data collection:-

(A)
(B)

Primary data
Secondary data

(A)

Primary data:

These are the datas which are not readily

available to the user or researcher but these data has to be


collected by some one primarily for their own use. They are
specifically collected for certain research. I have done survey
which is my original work.
Primary data is collected using questionnaire forms
and personal interviewing. It consist of data collected from
primary sources such as questionnaires , telephone surveys,
observation and experiments

(B)

Secondary data: These are the data which are already available
in the firm, company, internal needs & commercial trades &
private publication.

Secondary data is collected from other secondary sources


like internet, various previous reports and journals. It consist of data
collected from secondary sources such as news paper, magazines,
journals, books, public record and statistics.
I took the help of internet, books and publications.

SAMPLE DESIGN:Sample size:- The present project has been completed taking 50
units in sagar city . He units taken completely reflects the total
class of people living in sagar city, it includes 5 retails shops.

Sample unit: - All categories of people are taken as the product


is used by everyone. Many customers are studies questionnaire
forms & also personal interviewing of various related people.
Sampling method: - The sampling media refers to contact
methods, telephone, surveys and personal interview.

Sampling procedure:- Sampling procedure depends upon the research


objective to be accomplished through the investigation

Introduction of LG showrooms
It is a only one showrooms of sagar city.

It was established in 26jan 2010,owner name is Manish hiryani.


There are different types of dealer in sagar city these are as follows i.e: Prakash traders Lg exclusive
Prakash electronics
Anil and co.
Vijay agencies
Bombay radio house
The mostly selling product of sagar city is home appliances i.e:refrigerators,washing machine, Air conditioners, Lcd tv, Plasma tv, semi
washing machine,window Ac etc

POLICY PRIVACY of SHOWROOMS

This Privacy Policy may be updated by us at any time by posting on the site
without any prior notice. Also, this Privacy Statement may be supplemented
or modified by agreements entered into between us and an individual from
time to time. In this Privacy Statement, personal information means any
information about an identifiable individual, including contact and
demographic details, not including collective information or information

regarding a group in summarized form.


Collection of Personal Information.
The Site's registration form requires users to give us contact information
(such as name and email address) and demographic information (such as
postal code, age, or income level) and other information that is used by us to
provide services. We use the customer contact information from the
registration form to send the user information that he or she has requested
regarding the Site or regarding services offered by us. This Site uses an ad
form for customers to place online and/or print ads. One of the express
purposes of the Site is to gather contact information provided voluntarily by
customers to be published either online or in print, as the case may be, and
in connection with items that are for sale by customers. We have no control
over who views online or print ads. Contact information provided may be
used to contact customers when necessary. We collect customers financial
information (such as account or credit card numbers) to bill the user for
products and services, but retain this information only as required to process
the transaction and for as long as may be required by law.

Demographic and profile data is also collected at the Site. We use this data
to tailor each visitor's experience at the Site, showing the user content that
we think he or she might be interested in, and displaying the content

according to the users preferences.


Our online surveys ask visitors for contact information (such as email
addresses) and demographic information (such as postal code, age, or
income level). We use contact data from our surveys to send users
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future mailings (see the Opt-Out section below).
We may use customer information for additional purposes that may be
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information from customers for accounting and transaction completion
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Disclosure of Personal Information.
We may disclose certain personal information as follows: -

By

publishing ads either online and/or in print, as the case may be, in
connection with items that are for sale by customers

To third party service providers and to affiliated entities in order to carry


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We protect against the loss, misuse and alteration of personal information
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Contact Us
If you have any questions about this Privacy Statement, our privacy
practices in connection with this Site, or our collection, use, disclosure, or
retention of your personal information in connection with this Site, please
contact us at info about quikr.
Quikr was launched because we saw the need for a place where the local
community within a city could come together, meet, trade and help each
other in many ways. Community members can come here to find an
apartment to live in, sell their old car, bike ,music system, laptop or
furniture, promote their small business, find a tuition class or get a break as a
model or actor, join a salsa class, get an audience for a local event, buy any
item that they might want or have to offer and make new friends while doing
all of the above.
We hope to address all such needs and more by connecting people in an
easy and Quikr way.

LG RERIGERATORS
These refrigerators are available at different capacities in the market as per the
requirements of our customers.

The lg refrigerators are available at different types of models in the market. These
products are very superior in their quality and are available at affordable prices in
the market. They are generally made up of stainless steel which makes their body
very strong and protective against different types of shocks. These refrigerators are
available in both one as well as in two door models. The important feature of these
products is that they dont get affected by corrosion because they have a great
tendency to resist against it. These refrigerators are available at different capacities
in the market as per the requirements of our customers
Washing machine:- We are offering the lg washing machine in vast range to our
customers. These products are available at affordable prices in the market. The
technologies present in them are very unique which deep cleaning and wash to our

clothes. These machines are very simple to use. They are available at different
designs and models in the market.

LG washer dryers

We are also offering the lg type washer dryers to our clients as per their
requirements. These washer dryers are very popular in all over the world. They are
available at superior quality in the market. The washer dryers are the kinds of
machines which are used for washing as well as drying up of the clothes. They are
available at different types of sizes and models in the market. Their body is also
made up of stainless steel which makes them very strong LG Washing Machine

LG Semi Automatic Washing Machine

We offer high quality semi automatic LG Washing Machine. Owing to features like
easy loading and unloading, easy installation and higher capacity, these are
appreciated among our clients heir looks and give high performance.

LG dish washers

The dish washers are available at different designs in the market as per the
requirements of our clients. Our company is also offering lg dish washers at
affordable good prices in the market. Their body is made up of stainless steel
which protects them against corrosion. These products are also available in
different capacities.

LG vacuum cleaners

We are also offering the LG vacuum cleaners to our clients. The important
advantage of vacuum cleaners is that they suck the dust or any useless material
present on the floor with the help of air pump and in this way cleans up that very
particular place. These vacuum cleaners are available at different models in the
market. There is the dust bag present in them which is used to store the dust or dirt
in large amount.

LG Air Conditioner

Air conditioners:- Air Conditioners are used for providing the cooling as well as
heating effect. The lg is also offering special types of lg conditioners. They are
available at superior quality material in them. The lg air conditioners are available
at different models and capacities in the market. The important advantage of these
air conditioners is that they consume the less electricity.

LG Window AC -We offer our clients, regular ambient LG Window Air


Conditioner, which is of superior quality. This white vesting house AC features
advanced cooling unit, which is remote or mechanically controllable. Available at
highly competitive prices, these air conditioners are appreciated for their salient
attributes like durable .

LCD TV

Lcd tv:- The lg is also offering the LCD (Liquid Crystal Display televisions) to our
clients as per their need. These products are available at different shapes and sizes
in the market. As per their price is concerned they are available at affordable
prices. They are more advanced then crt tv and are thinner and lighter than crt tvs.
Such very kinds of tvs are very attractive.

Plasma
Tv:-

We are also
offering the

lg

plasma tv's.

The

lg

tvs

are available

at

different

plasma

models
the

in

market. The
important
advantage of

these

products

is

that they are less bulky than other televisions that are why they are more and more
demanded in the market. The life time of these products is very long and is made
up of superior quality material.

Semi washing machine:- We offer high quality semi automatic LG Washing


Machine. Owing to features like easy loading and unloading, easy installation and
higher capacity, these arappreciated among our clientsheir look.y and give high
performance.

MARKEYING STRATEGY

GROWTH STRATEGIES
Fast innovation calls for securing a competitive edge over the competition by
settingand meetingthe highest of goals in all realms of innovation, by at least
30%. This applies to new-product development and unveiling, innovation in design
and technologyas well as product sales,-market-share,-and-corporate-value.
Fast growth is the result of implementing strategies designed to swiftly expand
market size and earnings, with and eye toward monetary growth.
at products were available even in smaller towns and cities, breaking the chain of
urban dependency that plagues most white goods [Link] LG, a
nationwide launch meant just that. A penetrative distribution strategy ensured ther
cent the previous year. The industry average? Twenty-five to 30 percent. Add the
fact that the rural markets accounted for a remarkable 30 per cent of total sales and
it's clear that LG's strategy is working. "We push rural marketing," agrees Kim.

How does it do that? LG reaches into the hinterland through a pyramidal sales
structure. Branch offices in larger cities set up central area offices in smaller towns;
these in turn reach out to even smaller towns and villages through remote area
offices.
Each RAO has servicing, marketing and sales teams at its disposal and an
individual budget for marketing activities in its territory. The executive in charge
has independent decision-making powers -- he can decide the tenor and scale of
brand promotions in his area, without having to cross check every little detail from
the head office.

Technology, too, is being used to the hilt to ease their jobs. The RAOs and CAOs
are all electronically connected through a V-SAT and Intranet network.
And where earlier decisions about putting up large hoardings could be approved
only after a visit from the head office, LG has provided all its branch managers
digital cameras -- now they just click images of suitable locations and get them
approved [Link] and whistles
For customers, though, the direct approach is preferred. The advantage of an
extended distribution network is that marketing executives can keep a finger on the
pulse of the market. Promotions and finance schemes are designed to suit the needs
of local customers.
In a small town in Uttar Pradesh, for instance, last year LG offered select
households a free 15-day trial of a 50-inch flat screen television during the cricket
season. The TV set costs close to Rs 100,000, but several families took the bait and
considered buying the TV -- at which point the showroom staff offered them
carefully planned finance schemes.
Of course, it's not just the finance schemes that are tailormade. LG has been careful
right from the start to offer customers a "value-plus" proposition.
Explains KSA Technopak principal Harminder Sahni, "LG has always taken the
stand that 'We're selling the AC, not the remote. The remote comes as part of the
package.'" Which is why, he adds, the company does not qualify as a "budget"
models company. "LG does not sell no-frills product; it gives you all the bells and
whistles," Sahni says.

LG recognised the need to do that early on. Kim -- who's been with LG India since
1997 -- points to a basic characteristic of Indian consumers: "They are very price
sensitive. They want the best quality at reasonable prices." Accordingly, LG
introduced its economy range in the country, which Kim predicted would be
"easily accepted".
The company was ready to do battle on two flanks: it offered modern, featurespacked products, at the same time keeping its margins wafer-thin. Even
competitors accept the merit of the tactic.
"LG has been a price warrior while retaining its brand equity," points out Ajay
Kapila, vice president, sales and marketing, Electrolux India. "Our success is the
result of hard work and commitment. There's no miracle involved," says Kim.
The hard work was on the features, which were carefully chosen -- and adapted -to appeal to Indian audiences. For instance, Kim points out that consumers in city
of sagar prefer big sounds and big bass outputs.
Accordingly, LG showrooms sagar created Ballad, a flat screen television model
that sells only in the subcontinent and comes equipped with 2,000-watt speakers.
Similarly, refrigerators in sagar have smaller freezers and big vegetable
compartments -- sagarian prefer fresh food and a significant proportion are
vegetarian. Colours, too, are chosen keeping market preferences in mind. White
refrigerators, for instance, don't sell well in villagers area.
Other solutions are less elegant, but their relevance is undoubted. At LG, each TV
set on the line needs to be checked by switching on remote control.

Earlier, workers on the line would have to pick up the remote each time a set came
down the conveyor line. Now, they've created a small slot at the edge of the line for
the remote, which has been jigged so that the "on" button is always pressed.

Suggestions from workers on the shopfloor have not just helped improve
productivity -- the line target is to increase TV production from 2 sets to 4 a day,
within the next couple of months -- they've also helped in keeping costs down, says
Vipin Gupta, head of research.
Earlier, for instance, there were different packagings for 20" and 21" TV sets.
Since they're both nearly the same size, now the same size carton is used to pack
both types of TVs -- a sticker outside indicates the size and model.
showrooms and customer service head Sanjay Arora points out that workers at LG
are better placed to offer suggestions on product improvements because they're
encouraged to experience life outside the factory gates as well. Workers are
routinely sent to do sales stints at company showrooms and even to customers'
homes to service the products."This way workers on the line know what problems
the customers face and they also become more involved with innovations on the
line"
Welcome to LG Customer Service & Support
Get to know the ins and outs of your LG showrooms Product.
Owners manuals, repairs & parts, software updates, and warranty
information are given by [Link] by typing all or part of a model
name/number:
Browse for a Model by Product Type.

Warranty Claims
Find out if your LG Product is still under warranty by submitting or tracking

a claim.
Submit a Claim | Track a Claim Repairs & Parts.
LG can still provide expert repair service for most out-of-warranty products.
Out-of-Warranty Repair Options : Contact LG showrooms
Talk to our product support experts.
Send Us an Email
LG Electronics India Warranty Service .
Need to Make an enquiry or request a warranty repair?

:- Type in your model name or number to find the contact number or policy for
your product. You can also submit a request for Service through our Online
Module.
One Call Does it All
If you wish to request for a service, please contact a LG customer Service
Representative on 1800 180 9999 (Toll Free). The Call center are operational
on all days for 24 hrs.
LG provides warranty service through a Network of Authorised Service
Centers located across India. Please check on the Service locator screen to
track one near you.

Conclusion
Studying about the show rooms a lot of knowledge is acquired. What are the
brands and which companies offer what type of products is clearly known?
A lot of difference can be seen between sagar city and the villagers area proper
sagar city where more customized services are provided. Still there are several

hidden needs which the marketer has to identify in the show rooms product and has
to come up with new products in order to gain the market share and to satisfy the
customer on a great scale should bring new products which are of Refrigerators
and a great demand is for the new products which should be based on customer
[Link] and the entire family happy.
We wish all the best for its bright future.

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