Nova SBE
Download
1 / 24

Group 5 Gabriele Liepinyte 1586 Mariana Proença 11089 Olivier Mollerus 1417 - PowerPoint PPT Presentation


  • 98 Views
  • Uploaded on

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.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Group 5 Gabriele Liepinyte 1586 Mariana Proença 11089 Olivier Mollerus 1417 ' - penda


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

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


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


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


F Industryirms 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


LG started to export to developed markets Industry

Product weren’t well received

Move to emerging markets

Enter markets with long-term potential


Faced adverse economical factors Industry

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


1990 IndustryEstablishment of diplomatic relations

1998LG was one of the first Korean companies in Russia

  • First products were imported

  • Local plants opened


  • The Industryopening 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


1998 Industry 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


A sign of LGs effective localisation strategy


Good geographic proximity to Korea Industry

1988 Scouting mission Hong Kong

1991 LG enters China, through

a joint venture Huizhiou

16 corporations now


1 Industry

3

2

Diseases

(SARS crisis)

Unique nature of government regulations

Geographical proximity


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


Local event sponsoring variations in the overall strategy

I love China campaign (free sanitary masks against SARS)

R&D facility in Beijing

Hiring local employees (98% of employees local Chinese)


  • Local rivals

  • Dominant powers within electronics


Thank you for your attention! variations in the overall strategy


ad