A Study on Strategic Approach to Global Markets

A Study on Strategic Approach to Global Markets

In partial fulfilment of the requirements for

Management 220

Strategic Planning

Prepared by

Louriane Mae Gallardo

Ma. Francheska Kwan

Lord John Luza

Henry Ong

Julianne Ruth Tan

27 January 2016

1. Statement of the Problem

How can LG Electronics manage to control local competition to maintain their standings in the emerging markets?

1. Objectives

Generally, this study aims to provide a sound advice to LG Electronics on how they could successfully neutralize aggressive local competitors.

Specifically, this study aims to answer the following questions connected the presented case:

• Are the strategies used in entering the BRIC countries usable in maintaining brand reputation in emerging markets?
• What should the president do in order to continue LG’s power in China?

1. Areas of Consideration

During the course of its establishment in the emerging markets, LG has honed its various strengths including its reputation as a risk taker and its ability plan on a long-term perspective. The company achieved its position in the BRIC countries by tapping into markets that have not been previously entered into by other markets like targeting the rural market and creating a cohesive distribution network thus overcoming major roadblocks in the path in India. Another one of their strengths is their Research and Development department and corporate social responsibility actions. In China, they invested in R&D thus creating a company that designs their products based on the existing demands of the local market. They also hired local employees thus creating new jobs for their place of business. However, because of the continued changes in their industry, LG Electronics are facing troubles when it comes to entering developed markets because they lack brand identity and differentiation. Even with opportunities such as the possibility of entering developed markets, the bigger threat of local and global players hinder LG Electronics from moving forward.

1. Alternative Courses of Action

1. Consistently Maintaining Current Strategy and Expanding Production

        Since the current strategy of LG Electronics is working to their advantage, they should continue down this course of action. They should continue building a strong presence across the country through event sponsorships and local marketing campaigns.

Expansions of their manufacturing base and distribution channel should also be their priority in order to produce more products and reach a wider market. Additionally, they should focus on the further training of their local employees. Continuing their CSR activities in a similar approach and building trust in the local market by employing local talent.