Zach, Tina, Eric, Alex

Life’s Good

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 reputationThe 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)