Success of LG Electronics

LG's Success in Domestic and Foreign Markets

LG Electronics (LG) has gained success in both domestic and foreign markets by adhering to policies and capitalizing on strategic advantages built over time. Access to quality labor, as a result of the government's emphasis on education growth and the electronics industry, was one of the local-specific advantages that helped LG to expand and internationalize. Strong government and industry spending in R&D, an emphasis on the high-quality provision, and collaboration with foreign firms for the development of technologically advanced goods are other home-based advantages for LG's growth and internationalization. Other home-based competitive advantages are reduced costs from the improvement of internal value chain arrangements and organization structures and innovative product offering including being the first company to introduce "vacuum tube radio, electric fan, black and white television, washing machine, and an automated telephone system" (Ramaswamy, 2).

LG's Strategies in Emerging Markets

The common patterns utilized by LG in emerging markets include the setting up of manufacturing operations in these markets, providing guarantees for all the products offered by the company, and access to quick customer service in Brazil, India, China, and Russia. LG also offered a wide range of product to consumers in the emerging markets and Using locals as managers in emerging economies and joint ventures with local companies, for example, Betavision in India and launching subsidiaries such as LGIL in India. LG also offered culturally specific products to meet different consumer needs in the emerging markets and focused on improving branding.

Country Specific Strategies

Country specific patterns include offering customized products to rural markets in India owing to low consumer purchase ability and sponsoring cricket. LG's branding in Brazil included supporting a football club in Sao Paulo improving its brand awareness and market share. Instantaneous service was also offered to customers and location in underdeveloped areas in Brazil. Equipping circuits to all products offered to India because of dramatic voltage fluctuations in the country is another country specific pattern and utilized a tiered distribution approach to reach rural areas in India and an online channel, Igezbuy.com. LG also set up medical facilities for its employees in India to meet the health needs, their families, and the local community. In Russia, LG used a bounded warehouse business, culture marketing including LG festivals and cooking events, initiated research and development in Pittsburg, local customization and event sponsorships. In China, LG built strong manufacturing presence for export to Russia and US, set up a research and development facility in Beijing and an LG Village, sponsored "I Love China" Campaign, and sponsored cultural events and experiences.

Transferring Competitive Advantages to Developed Economies

The competitive advantages gained by LG in emerging economies can be transferred to developed economies including the low cost of production, access to qualified labor, and offering innovative products will allow LG to compete effectively in developed markets. These competitive advantages will allow LG to compete regarding quality, pricing, and usability of its products.

Work Cited

Ramaswamy, Kannan. LG Electronics: global strategy in emerging markets. Thunderbird School of Global Management, 2007.