SWOT Analysis of LG Electronics focuses on Strengths, Weakness, Opportunities, and Threats. Internal Factors in the SWOT Analysis are Strengths and Weaknesses and External Factors in the SWOT Analysis are Opportunities and Threats.
SWOT Analysis is a proven management tool that helps organizations such as LG Electronics to assess the market of Electronic products and its success against rival companies. LG Electronics Inc is one of the best electronic manufacturing company in India. LG Electronics was founded by Koo In-hwoi. Headquarter of LG Electronics is located at South Korea.LG Electronics has a huge Employee Base of 72600. LG has a wide spectrum of Products which includes Televisions, Mobile Phone, Tablet Computers, Mobile Devices, Rolly Keyboards, Smart Watches, and Home Appliances.
Strengths in the SWOT Analysis of LG Electronics – LG Electronics SWOT Analysis
- Global Giant: LG Electronics operates 114 local branches nationwide, hiring about 82,000 executives and staff. LG is an MNC and is a well-recognized white & brown products company. It has always been known for its ease of use, basic interface, creative & reliable technology.
- Trusted Quality: LG Products are of high quality. People have a blind faith on LG Products.
- Extensive distribution system: LG is a fast-moving retailer sustainable business, through its distributor partners, makes its products available on the markets. LG sees very quick product turnover due to its pull policy but still needs to use product dumping to the channel partners. It uses the G-local approach to sell its goods (be it global or local).
- Diversified products across the divisions: LG has a wide product range and length of both white & brown goods across the food categories.
- Strong Awareness: Funding sports & leisure activities such as the ICC cricket world cup, Formula One championship, soccer matches, etc. through its ongoing promotional efforts. LG has created high awareness and is also active in branding efforts.
- CSR activities: LG has already participated in group projects to include residents in capital co-creation. LG is doing activities like child education, blood donation camps, women empowerment, etc.
- Brand loyalty – LG’s long-term market position, along with their brilliant innovation campaigns, and durability on their products have maintained LG’s high brand value, allowing it to succeed in a challenging business climate.
- Supply chain and Reach: LG Electronics has a wide number of distributors in almost every territory, supported by a robust distribution network meaning that its products are readily available to a wide number of buyers in a timely manner.
- Dealer Community: LG Electronics has a strong relationship with its distributors that not only supports them but also works on the company’s product marketing and preparation.
- Financial status: LG Electronics has a stable financial position with cumulative profits over the last 5 years, along with accrued cash reserves that can be used to finance future capital expenditure. Has a large base of reserves providing greater solvency.
- Return on Capital Spending: LG Electronics has in the past been able to successfully earn good returns on the capital investment it invested on various projects.
- Automation: has allowed more productive usage of the resource and cost savings from different production stages. It also requires the products to be consistent in consistency, and provides the ability to scale up and down production according to consumer demand.
- Trained labour force: LG Electronics has invested heavily in educating its employees, which has resulted in recruiting a large amount of inspired and skilled staff.
- Has a diverse workforce, including employees of many political , religious, cultural and educational backgrounds who help the company carry together new ideas and approaches to do stuff. Has trained and accredited committed team-workers.
- Entering new markets: LG Electronics innovative departments have helped it produce new products to enter new customers. It was popular in the past, it brought on most of the projects on new markets.
Weakness in the SWOT Analysis of LG Electronics – LG Electronics SWOT Analysis
- Online Presence is very Low: LG Electronics is not having good presence in online market.
- Lack of Online Promotions: LG Electronics is not promoting its products in online Social Media and not launching exclusive products on Flipkart and Amazon. LG Must launch new products by doing tie-up with e-commerce giants like Flipkart, Snapdeal and Amazon.
- Management: Because of their strong impact on the white & brown goods market, they are not able to better concentrate on any single product segment due to which they lose their market share on other items such as T.V., Refrigerator etc.
- No Cash cows – because of its mobile phones and mobile TV’s, Samsung has incredible brand value. Likewise, the majority of companies have a super-hit commodity which is a cash cow. But there is hardly any commodity in LG that is a cash cow for them.
Opportunities in the SWOT Analysis of LG Electronics – LG Electronics SWOT Analysis
- Changing lifestyles: growing metropolitan population, rising disposable income, transitioning to technology items and migrating from rural to urban areas are some of the reasons that will move home appliances, electronic goods
- Competitors assisting in the transition of the modern technology: Intense market rivalry allows LG to make its goods appealing to society. But LG can take advantage of this and can boost its market share by considering pushing competitors.
- Business expansion: By expanding deeper to the developing markets, the organisation can further boost its growth rate.
- Strategic Collaboration: LG has been involved with several organisations to date in the joint relationship. It is making strides in technology and finding growth prospects through numerous collaborations with some of the world’s leading businesses. Strategic partnership between companies in which fast-developing enterprises with diverse infrastructures collaborate.
- Online Sales: Company must formulate strategies to sell its product in the market.
Threats in the SWOT Analysis of LG Electronics – LG Electronics SWOT Analysis
- Intense competition within the industry: Any enterprise in this sector is battling hard to make its presence known and retain its market share. The majority of business players follow the Red Ocean plan to destroy the rivalry that is impacting the market as a whole.
- Dynamics of declining urban demand: As more and more businesses are venturing out in the over-competitive urban market, there is little potential left in these sectors, so the business like LG would be more careful when depending on these sectors.
- Political Regulations: Government restrictions on the use of advanced electricity & power saving technologies impact the sector and push them to turn to green energy sources.
- Sluggish Economy: Macroeconomic instability, unemployment, joblessness etc. are the economic conditions that would dampen the market for a long time to come.
- Growing Raw material costs: LG ‘s profits are declining due to rising raw material prices & labour costs, which makes company activities less profitable.
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