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Group 5 Gabriele Liepinyte 1586 Mariana Proença 11089 Olivier Mollerus 1417

Nova SBE International Management. Group 5 Gabriele Liepinyte 1586 Mariana Proença 11089 Olivier Mollerus 1417 Patrícia Milhinhos 11424 Angus Sullivan 1403 Chiara de Benedetto 1413 . LG Electronics: Global Strategy in Emerging Markets.

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Group 5 Gabriele Liepinyte 1586 Mariana Proença 11089 Olivier Mollerus 1417

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  1. Nova SBE International Management Group 5 Gabriele Liepinyte 1586 Mariana Proença 11089 Olivier Mollerus 1417 Patrícia Milhinhos 11424 Angus Sullivan 1403 Chiara de Benedetto 1413 LG Electronics: Global Strategy in Emerging Markets

  2. High quality, innovative electronics products Market value of LG Electronics grew 22% Samsung’s twice market capitalization as Sony’s (Japan) World’s first dual-system DVD player

  3. Koreans’ prioritize the development of the Electronics Industry The government encouraged foreign direct investment in technology and creation joint ventures. Korea’s electronics were exported by the foreign countries with joint venture

  4. Firms were encouraged to invest in local R&D Research infrastructures to help the firms were created Vocational schools attracted students for technical education Universities developed experts in science and technology

  5. LG started to export to developed markets Product weren’t well received Move to emerging markets Enter markets with long-term potential

  6. Faced adverse economical factors LG decided to stay and expand their presence • Agreements with local distribution chains • Maximize the benefits from the government • Advertise their brand through soccer sponsorship • Customized products • Premium positioning strategy

  7. 1990Establishment of diplomatic relations 1998LG was one of the first Korean companies in Russia • First products were imported • Local plants opened

  8. The opening of LG branded stores • Dedicated retail channels • The hosting of festivals and cooking events • Sponsorship • Local offices and R&D center • Sourcing local talent to fill company roles • Opening local manufacturing plants

  9. 1998 Russia faced with severe economic crisis Competitors scaled back and retracted from Russia LG invested heavily in their Russian operations • Local product customization • Distribution channels • Event sponsorship

  10. Seal of approval for “national brands” • LG allowed by the Russian government to display on products A sign of LGs effective localisation strategy

  11. Good geographic proximity to Korea 1988 Scouting mission Hong Kong 1991 LG enters China, through a joint venture Huizhiou 16 corporations now

  12. 1 3 2 Diseases (SARS crisis) Unique nature of government regulations Geographical proximity

  13. Same as when they entered Brazil and India, with some variations in the overall strategy • Build strong manufacturing presence They tried to get local consumption instead of export

  14. Local event sponsoring I love China campaign (free sanitary masks against SARS) R&D facility in Beijing Hiring local employees (98% of employees local Chinese)

  15. New market entrants • Local rivals • Dominant powers within electronics

  16. Thank you for your attention!

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