LG Electronics Essay Example | Topics and Well Written Essays - 1250 words

LG Electronics - Essay Example Recently, it has included Mobile Phones with various specifications in its enriched product line up. The company’s annual turnover in the year 2009 has recorded 13089 crores (LG Electronics, 2012). In relevant to the company’s various products, the two divisions i.e. the home appliances and the electronics goods are located on the Boston Consulting Group Matrix (BCG) where the upper right quadrant is the electronics division and the lower left quadrant is the appliance division. The BCG Matrix introduced by Boston Consulting Group, is an instrument that allows the company to evaluate and to classify its products as well as services. Furthermore, it is a decision making tool that helps to balance the activities of an organisation related to the products that make profits and signify growth in order to sustain the future of the company. The matrix helps to implement the development policies of the company. The BCG matrix positions the products in two ways, namely, the rat e of growth of the market and the market share of the product contrary to its competitors (Luxinnovation G.I.E, 2008). Findings The structure of BCG matrix consists of four quadrants namely, Stars, Question marks, Cash cows and Dogs. In this context, the two divisions of the company are located on the Question marks and Cash cows. ... The company emphasised on capturing higher market share by sales maximisation. However, the presence of fierce competition due to a number of competitors such as Samsung which offers products targeted to the entire age groups and classes of society, barred LG from penetrating into new business markets and attaining higher share of the market. The cash cows quadrant consists of products that generate higher profits in a short period of time which need to be replaced because of the low growth in the future, as a result of that the investments are comparatively lower. Moreover, the products in cash cows should be profitable as they are able to finance other activities in the stars and the question marks (Scribd Inc, 2012). LG’s home appliances are its core products that the company is based upon. The 60 inch Plasma Display Panels were the world’s first, to be introduced by the company in the year 1998 (LG Electronics, 2012). In the following years, the company developed va rious creative and innovative products which ultimately raised huge market share and facilitated the company to generate huge profits. Its low cost features and maintenance free appliances have ensured the company’s products to be present in almost all the households thereby, satisfying and growing among its targeted segment, mostly the females in the family. Recommendations The smart phones introduced in the markets are required to go through a drastically innovative change that will allow the product to mark a presence in the market and compete against its rivals. It has been noted that the company priced its mobile phone devices at a comparatively cheaper prices in order to target the middle and lower class people. However, in following this strategy the company relied more on providing