Lg Electronics – International Business

The multinational confederacy that I will be examining is LG Electronics. LG Electronics is ground out of Seoul, Korea and was established in 1958. It is a subsidiary of LG Group, which is champion of the largest electronic conglomerates in the initiation. This company is a global manufacturer of consumer electronics, telecommunications systems, and home appliances. LG operates its business through four study grades home entertainment, officious communications, home appliances, and air conditioning & zipper solutions. They are the second largest manufacturer of flat screen videos, and the third largest producer of unsettled send fors.North America and Asia are its dickens largest markets, each lend about 30% of sales. According to their website, LG Electronics has everyplace 120 ventures well-nigh the world. They habituate around 93,000 personnel. LG Electronics owns Zenith Electronics and controls a large portion of LG Display. Its home entertainment division produ ces cutting edge products, such as liquid crystal expose (LCD) televisions, plasma televisions, 3 dimension (3D) televisions, home theater systems, projectors, and audio, video, and storage devices.The mobile communications branch provides a full line of communication devices, mobile communication terminals, and tablet personal computers (PCs). The home appliances division manufactures microwave ovens, refrigerators, washout machines and more. The air conditioning and aught solutions branch creates air conditi wizrs, develops solar energy cells, and provides green lighting solutions. The consumer electronics industry is growing rapidly with numerous ripe products being invented due to recent advances in technology. This has driven increases in consumer demand.LG Electronics is hotshot of the leading competitors in this area. The global market is pretty equ anyy dissever between the United States, Asia, and Europe. The Americas region accounts for 38% of the global market, and is dominated by the US market. Additionally, the economic growth in substantial markets such as China and India has boosted the global consumer electronic market revenue. LG Electronics has many different external activities. This company has branches in al virtually every region of the world. For instance, LG has production plants in Mexico, Saudi Arabia, Turkey, England, Poland, and Brazil.This alliance operates offices for merchandising its products in every country imaginable, such as Jordan, Nigeria, Russia, Australia, Thailand and the United States. This is truly a company that is rapidly expanding its holdings around the world. This corporation is putting full effort into becoming one of the sack up three manufacturers of electronics and telecommunications systems on earth. They are doing so, by using two study strategies fast innovation and fast growth. LG Electronics is putting a lot of cartridge clip and money into research and nurture, in order to get ahead of its c ompetitors.LG is placing the volume of its effort into what they term smart technology. Smart technology is LGs growth philosophy that embraces sensitive communication with guests in order to provide products that everybody wants to use, and substantially can. This customer oriented principle has become the most important development philosophy for LG. The key areas that LG is focusing on are the mobile phone and digital television industries. They are also actively participating in pilot projects such as home net do working to develop new products with versatile service providers.LG Electronics is also developing new business opportunities by creating strategic alliances with opposite successful companies. It is LG Electronics goal to become number one in the world through these relationships. Businesses with different foundations are collaborating with LG to create a strategic alliance between corporations. This is crucial to creating a new industry and hardening the curr ent one. One of the companies that LG Electronics is working with is Skype. Through this partnership, LG is working to create television products with embedded Skype capabilities.General Electric (GE) is another major corporation that LG is collaborating with. These two businesses have agreed to share patents on cooking appliances and refrigerators. Arguably the most important alliance that LG has formed is one with Microsoft. LG has already released a smartphone based on Microsofts Windows Mobile. In addition to that, the companies have been working unneurotic closely for personal computer, digital television, and mobile phone convergence. In celestial latitude 2002, the managing director of Francis Kanoi Marketing Services, Francis Xavier stated LGs success is more related to marketing than technological superiority. I believe that spending money for owing(p) advertising is LG Electronics major international strategy. This is a technique that will work regardless of what region the consumer lives in. For example, in 2002 LG Electronics India launched advertising campaigns featuring cricketers. LG then released 22 commercials featuring world class cricketers to strengthen its association with cricket. Experts felt that LG would profit by line up itself with this sport in a country such India where cricket has a huge following.The company then spent approximately 500 meg dollars on advertising during the cricket world cup. Due to its aggressive promotion plan, LG became the market leader in India for color televisions, washing machines, refrigerators, and microwaves. LG has since gone on to become one of the leading sponsors of cricket in India. This is a marketing plan that has worked well in other counties too. LG Electronics sponsors soccer teams in England and rib Rica, where that sport has a large audience. In Australia and Argentina, they are the corporate sponsors of rugby teams.LG also sponsors London Fashion week, as well as figure One racing w hich has a giant following all over the world. In essence, LG Electronics is extremely smart in aligning its brand with ordinary sports and events. LG Electronics is a multinational firm that is striving to become the number one electronics conglomerate on earth. The company is working toward achieving this goal with more than one business strategy. First, they are putting time and effort into listening to the customer when it comes to research and development of new, better products.Second, LG has formed many strategic alliances with other major companies, in order to expand its holdings. Lastly and most important, this corporation is spending money on great advertising and sponsorship of popular sports teams all over the world in order to promote its brand. References 1. http//en. wikipedia. org/wiki/LG_Electronics 2. http//www. lg. com/global/index. jsp 3. http//www. fibre2fashion. com/industry-article/11/1004/increasing-competition-creates-stress-on-marketing-managers4. asp 4. http//www. allbusiness. com/company-activities-management/company-strategy/16611527-1. html