LG Electronics Essay Example | Topics and Well Written Essays - 1250 words

LG Electronics - Essay ExampleRecently, it has include Mobile Phones with various specifications in its enriched harvest-time line up. The participations annual turnover in the year 2009 has recorded 13089 crores (LG Electronics, 2012). In relevant to the companys various products, the two divisions i.e. the home appliances and the electronics goods argon located on the Boston Consulting Group Matrix (BCG) where the upper right quadrant is the electronics division and the shiftze off left quadrant is the appliance division. The BCG Matrix introduced by Boston Consulting Group, is an instrument that allows the company to evaluate and to bump its products as well as services. Furthermore, it is a decision making tool that helps to balance the activities of an organisation cerebrate to the products that make profits and signify growth in differentiate to sustain the future of the company. The matrix helps to use the development policies of the company. The BCG matrix positions the products in two ways, namely, the rate of growth of the food market and the market sell of the product contrary to its competitors (Luxinnovation G.I.E, 2008). Findings The structure of BCG matrix consists of four quadrants namely, Stars, Question marks, Cash cows and Dogs. In this context, the two divisions of the company are located on the Question marks and Cash cows. ... The company emphasised on capturing higher(prenominal) market share by sales maximisation. However, the presence of fierce competition due to a look of competitors such as Samsung which offers products targeted to the entire age groups and classes of society, barred LG from penetrating into new business markets and attaining higher share of the market. The cash cows quadrant consists of products that generate higher profits in a short closure of time which need to be replaced because of the low growth in the future, as a result of that the investments are comparatively lower. Moreover, the products in ca sh cows should be profitable as they are able to pay other activities in the stars and the question marks (Scribd Inc, 2012). LGs home appliances are its core products that the company is establish upon. The 60 inch Plasma Display Panels were the worlds first, to be introduced by the company in the year 1998 (LG Electronics, 2012). In the following years, the company developed various creative and innovative products which ultimately elevated huge market share and facilitated the company to generate huge profits. Its low cost features and maintenance free appliances have ensured the companys products to be present in almost all the households thereby, satisfying and growth among its targeted segment, mostly the females in the family. Recommendations The smart phones introduced in the markets are required to go through a drastically innovative change that will allow the product to mark a presence in the market and compete against its rivals. It has been noted that the company pric ed its mobile phone devices at a comparatively cheaper prices in order to target the middle and lower class people. However, in following this strategy the company relied more on providing