Life’s Good
Zach, Tina, Eric, Alex
LG
HISTORY
 LG
group was founded as a chemical
company by In Hoi, Koo.
 LG’s logo stands for the name Lucky
Goldstar.
 LG’s slogan is Life’s Good.
 LG Electronics set up in 1958
 After 1990, LG Group set foot in many
fields including cell phone market
INDUSTRY ANALYSIS
 Foreign
markets are growing extremely
fast
 Motorola created DynaTAC which they
nicknamed the “brick”
 Depends on Hi-tech
 A vast billion dollar industry that seems
to be ever changing
LG IN CELL PHONE INDUSTRY
 LG
continues to expand product line
and implement new technologies
 Well-known and good reputation
 The mobile communication industry
will continue to be productive and
make companies like LG tons of money.
GLOBAL ISSUES
 More
than 82,000 employees in over 80
countries
 Competition with other multi-national
corporation
 Negative issue: Global competitors separate the
cell phone market
 Positive issue: Agreement with InnoPath
Software Inc.
 Makes every effort to globalize, such as India
RISKS
 High-end
Market occupation
 the competitive advantages of scale and
advantages of low-cost production
 mature market is relatively stable
 difficulty in continuing expansion and
keeping pace with market changes
 Existing competitors in up-market
RISKS(CONTINUED)
1. Retain in the low-end product image, and
to establish High-end brand's image.
2. Only continuing to market high-quality
integration of advanced technology
3. Targeting high-end consumer goods
market scrambling to introduce products
Rise in profit, but its market share has
declined
FUTURE TRENDS
 bright
future for LG
 prototype watch phone
 installing software
 the technology of touch screen
 Continue to search for top of the line
electronic equipment that attracts peoples
ever changing wants and trends
SWOT ANALYSIS
Strengths
 LG has an advantage in CDMA
 Unique design is the other strength of LG
 LG is good at making their products famous.
Weakness
 Function of LG cell phone
 Touch screen of LG’s cell phone is not very good to
use
 Not easy to use
SWOT ANALYSIS(CONTINUED)
 Opportunities
 The touch-screen technology is the biggest potential
for the future cell phone
 A well-designed cell phone can attract more
consumers’ attentions
 after-sales service for customers
 Treats
 Fierce competition with many companies
 over-supply, profit down
 financial crisis around the world
COMPETITORS
In our case, there are two traditional competitors, Samsung and
Nokia.
 In addition, with the revolution of communication technology,
there are also some new “invaders” continued to enter into cell
phone market.

Zol.com.cn
SAMSUNG
 Samsung
is one of the biggest local competitors,
which is a Korean based Corp.
 They produce identical products, but now
Samsung becomes the No.2 cell phone producer
in the world.
 Advantages: producing panel, webcam, and
memory
 preferred by business people & fashion people
NOKIA
 Top
market share, top 5 valuable global brand
 A consistent operating performance
 Acquisition of Symbian, Operating System,
which took 55% market share and is crucial for
cell phone
 Many types: clamshell, bar phone, smart phone,
and slide phone
 Waterproof compression and anti-break,
durable
NEW INVADERS

Apple Inc.—iPhone

Google—Gphone

Microsoft—Zune Phone
IPHONE
LG PRADA
GOOGLE HTC DREAM G1
MIROSOFT
RECOMMENDATIONS
Short-term
 Join in the Symbian Foundation
 Struggle for the license of using Google’s
Android operating system, which is more
open-ended.
 Hold their share in lower market
 Keep the market share of CDMA mobile
phones
Long-term
 Improve
their 3G technology
 keep working on the designs
 Improving the quality of the cell phone
 "Blue Ocean Strategy"
 LG Electronics should adhere to this
ambitious strategy to create more unique
technology for mobile phones, and then
eventually to a big cake to come back to
LG.
CONCLUSION

Improving

1. Touch screen Technology

2. CDMA for current market
THANK YOU
Zach
Tina (Kang Wei )
Eric (Yang Ke)
Alex (Zhang Cunsi)