Presentation topics

BCG MATRIX ANALYSIS Of LG ELECTRONICS

Prepared for.
Rahma Akhter Lecturer School of Business University of Information Technology & Sciences

Prepared By.
PLEBS GROUP

Md. Mehadi Hasan

Id. 10310722 Md. Mahadi Hasan Id.10310723 Sabuz Sarker Id.10410275 Md. Muradul Alamgir Id. 10410190 Md. Nazmul Ahsan

Id. 10410340

Agenda/Topics to be Covered..
Company Profile.. Products

LG Brand Identity: BCG Matrix BCG Matrix of LG company according to its products Comparative analysis

Attributes affecting Purchase Decision

Product life cycle of LG.

Company Profile..
The company was originally established in 1958 as Gold Star,

producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived.

Company Profile..
LG Electronics controls 110 local subsidiaries in the world with

around 82,000 executive and employees. SLOGAN: "Life's Good" represents LG's determination to provide delightfully smart products that will make Consumers life good.

PRODUCTS
Mobile communications CDMA Handsets GSM Handsets 3G Handsets Cellular Phones Digital appliance Air Conditioners Refrigerators Microwave Ovens Washing Machines Vacuum Cleaners Home Net Compressors for Air Conditioners and refrigerators

PRODUCTS
Digital display
a) Plasma TVs b) LCD TVs c) Micro Display Panel TVs d) Monitors e) PDP Modules f) OLED Panels g) USB Memory h) Flat Panel Computer Monitors

PRODUCTS
Digital media
a) Home Theater Systems b) DVD Recorders c) Super Multi DVD Rewriters d) CDRW e) Notebook PCs f) Desktop PCs g) PDAs h) PDA Phones i) MP3 Players j) New Karaoke Systems k) Car Infotainment

LG BRAND IDENTITY:The Brands core Value that never changes.

Trust, Innovation, People Passion

The benefits that are consistently delivered to the customer includes :
Reliable products Simple design Ease of use Extraordinary Experience

BCG MATRIX

Stars:
If question mark business becomes successful, it

becomes star.
High growth & High market share Stars are using large amounts of cash Strategy: To expand market or To hold market.

Question Mark
High growth but low relative market share
If the market share remains unchanged, Question

Marks will simply absorb great amounts of cash.

Either invests heavily, or sells off. Increase market

share or deliver cash.

Cash Cows
When annual market growth rate falls to less than 10%, a star becomes

cash cow. A cash cow has Declining market growth; but High market share. A cash cow brings lot of cash for the company.
A cash cow is established market leader

Dogs:
Avoid and minimize the number of Dogs in a company. Weak market share & low growth market So low profit or even loss. Ultimately the business is stopped.

BCG MATRIX OF LG COMPANY ACCORDING TO ITS PRODUCTS:

BCG Matrix

STARS (Air condition & Refrigerators)

QUESTION MARKS (LCD)

CASH COWS (Mobile Phones)

DOGS (LG chemical)

COMPARITATIVE ANALYSIS

Brand Awareness & Market Share

MOTOROLA 13% APPLE 6% LG 6%

Market Leader: Nokia

SAMSUNG 17%

LG has a pie of 6% Close competitor of Motorola & Apple

SONY ERICSSON 11%

NOKIA 48%

Mobile Phones

Brand Awareness & Market Share

Market Leader- LG
Samsung is Second most

popular brand
Hitachi & Whirlpool lag behind

Refrigerators

Brand Awareness & Market Share

Market Leader- LG
Hitachi Second most popular

brand
Samsung commands the third

position

Air Conditioners

Brand Awareness & Market Share

Market Leader- Sony
LG and Samsung close

competitors

LCD TV

Brands Evaluation Chart

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 LOOKS AFTER SALES SERVICES USER INTERFACE BATTERY LIFE
NOKIA

LG
SAMSUNG

SONY ERICSSON

Brands Evaluation Chart

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 CAMERA QUALITY SOUND QUALITY BUSINESS UTILITY CONNECTIVITY OPTIONS
NOKIA

LG
SAMSUNG

SONY ERICSSON

Attributes affecting Purchase Decision

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

LOOKS BATTERY LIFE BUSINESS UTILITY

AFTER SALES SERVICES CAMERA QUALITY CONNECTIVITY OPTIONS

USER INTERFACE SOUND QUALITY

PRODUCT LIFE CYCLE OF LG

LG LCD AT INTRODUCTION STAGE (Question Mark). LG APPLIANCES IS AT STAR STAGE LG MOBILE PHONES & TELECOMMUNICATION SERVICES IS AT CASH COW STAGE LG Chemical IS AT DOGS STAGE

CONCLUSION
Unexploited rural market, Rapid urbanization, Increase in income level i.e. increase in purchasing power of consumers, Easy availability of finance are the whooping factors for LG.