Lg Porter's Five Forces Analysis Essay

775 Words Feb 9th, 2013 4 Pages
Introduction
LG is a South Korean company that manufactures mobile phones, as well as other devices such as televisions and home appliances. They also offer Appliances , computer product, solar, LG originally stood for "Lucky Goldstar", but is now promoted as meaning "Life's Good". And LG is the fourth largest mobile phone manufacturer in the world.

LG Porter's Five Forces Analysis
The Bargaining Power of Buyers
The bargaining power of buyers is petty moderate. There aren't many companies have same quality of products as those of LG. They have really high technologically televisions, monitors, notebook PCs. It stand out among existing competitors. Everything from the slim and sleek, it make the products superior to the competing
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You have to have high technologic and large number of starting money. And due to its highly competitive nature, you have to forget profit first and using tons of money on commercial to make customer to know your new company. Other entry barriers also include LG’s absolute cost advantage in its supply chain management and learning curve advantage with its years of experience as a leading player in the industry

Rivalry among Existing Competitors

Rivalry among existing competitors is very high. There have some Asian competition such as Samsung, Sony and Sharp…They have their superiority, so LG keep “Everything from the slim and sleek” and designing its products in ways that appeal to and fit the needs of today's customers to make the products superior to the competing companies.

LG Corporation SWOT Analysis

Strength
LG is a recognized brand around the world, and they have successful established not only in developed countries but also in developing countries.
LG keep “Everything from the slim and sleek” and designing its products in ways that appeal to and fit the needs of today's customers.
LG growing stage and quickly. There have more and more customer happy to buy their product, and become their loyal customers.
LG has nice price in the market according to its quality.
Weakness
They have Low market share in its primary market.

Opportunity
The IT market