Swot Analysis - Operations Management Strategies Adopted by Lg Brazil

LG Electronics do Brasil Ltda. Was established in the year 1990.

SWOT Analysis of LG Brazil:

Strengths:

1.Multinational company and a recognized brand.

2.Localized Strategy resulted in reliable, easy to use, simple designs in electronics and home appliances which satisfy consumers. “Glocalization” of products has made LG successful where other South Asian companies have struggled.

3.Invested in R & D to produce innovative products to attract the customers and to capture more market share.

4.3 year warranty of products and excellent after sales service support.

5.Robust supply chain. Enormous focus in relationship management with distributors.

6.Year round advertisements and sporting event sponsorship.

7.Sponsoring of football club - Sao-Paulo.

Weaknesses:

1.Lack of competent employees.

2.High import tariffs makes raw material cost high.

3.Very low brand awareness.

Opportunities:

1.Brazil is one of the fastest growing markets for electrical and electronics products which is forecast to grow at a CAGR of 9.92% in 2014-2019. (Source: ASD Reports)

2.Dropping value of local currency will boost exports margin. (Source: Google)

3.Govt. offered tax incentives and subsidized land can help in expansion of production units to cater the local and export requirements. (Source: Google)

4.Growing middle class population.

Threats:

1.High number of competitors.

2.Low and depreciating economic growth of Brazil.

3.Political uncertainty in Brazil can affect companies stock prices.

4.Social Inequalities.

5.Government inaction