Lg Electronics - The Blue Ocean Strategy

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International Management – 3rd Case Study Summary – LGE: Global Strategy in Emerging Market 1. Introducing the Case This case shows how LG emerged in first place, in the South Korean market, how this experience in the domestic market influenced the way it expanded into the BRIC emerging economies, the differences and similarities in the entrance into this group of countries. The Korean Market was highly competitive and this helped LG enacting “come fro m behind” strategies and also fighting its way to the top in the BRIC countries; the Korean Government gave much importance to R&D which made high quality R&D enabling quick and effective localization of products and services always central to its approach to expanding its presence within the emerging economies and also made clear the importance of working with the government which work well in Brazil; Korea was economically disadvantageous which gave LG awareness of its social responsibility, which was very effective in India also. There are several similarities in how LG expanded into BRIC economies. First, in India and Brazil LG appears to be combining a ‘taking brands from local to global’ strategy, by using local engineering excellence. Then, it utilized the incentives governments offered and the changes in government policy to maximize the benefits it was able to access. Also, it marketed itself through sponsoring national sporting events raising its brand recognition, and in other cases this brand recognition came from not retiring from the countries when economic crisis came over. Also it focused very much on the consumer and in the pre and after sales which made LG launch, in India and Brazil, launched a fleet of repair vans to reach geographically remote areas at short notice. 2. Challenges Ahead The first main challenge facing LG is that in the emerging economies, where it had worked hard to establish

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