LG Will Clean Up, With or Without GE This week's article is about our home-proud company LG. The LG Total Capacity Refrigerator which has 15" LCD TV with FM radio, temperature adjustment, room temperature display, water controls, a weather & info center, recipes, digital photo album, calendar, BioShield Anti-Bacterial Seal and other features.
LG is "clearly one of the leading candidates," GE Chief Executive Officer Jeffrey Immelt said during his short visit. One might thing, 'What on earth is he talking about?'. It is that LG is trying to move to the continent of money, America market, to achieve further success, like it is showing in India and other countries. LG is occuping merely 70% of Korean house appliances. However, it is not all that easy.
Success in the more mature U.S. market would, of course, be harder to achieve on its own. Still, in the U.S., LG has made remarkable progress in the past four years with its strategic focus on premium segments. The Korean maker has targeted consumers willing to pay a few hundred dollars extra for snazzy designs and high performance. LG's sleek washing machines, for instance, last year commanded a 22.8% share of the market for more expensive front-loading washers priced at up to $2,500. That's up from only 6% three years earlier.
That is why LG is considering a close business relation with GE.
Opinion
When I was in Thailand and America for my junior-high, I still remember how shocking it was to see a building-sized samsung logo on the broadway. And also, LG flat TV hung at the UN lobby. They are the promotion of Korea as a successful nation with high technology and high standard of living.
As we studied in the class, Korea has high technology to sell around the world, but marketing strategy is so bad. One example is Hyundai compared to Toyota. Toyota's tech is not so up high, but they use the tech in such a way to fulfill customers' delicate taste.
International market penetration require much research about the market's specific preferences. In this sence, merger with GE would bring positive effect to LG.
Reference. LG Will Clean Up, With or Without GE by Moon Ihlwan, Business Week
May 29, 2008
No comments:
Post a Comment