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ANALYSIS

Political: LG faces significant political risks in the countries where it operates though in the majority of the countries, the political situation is conducive for the operation of the country. This is particularly the case in countries in the African continent and the South East Asian countries where LG is at a distinct disadvantage because of the hostile business environment. In countries like China and India, the company has a conducive political environment which allows it to concentrate on the markets in a better way. Socio-Cultural: Despite being a South Korean based company, LG has managed to integrate itself well in the emerging markets where it does business. This has resulted in a think global, act local (Glocal) mindset that has effectively bridged the cultural and social gap between its home countrys business landscape and the markets where it operates. The company tries to strike a balance between the aspiration values of the consumer classes and the levels of income that they possess. Technological: LG prides itself on its innovative approach to technology and harnessing the same for rolling out products that use cutting edge technologies in their design and features. The technological capabilities of LG are well known and the company is especially strong on this element. The companys innovation drive is its biggest strength and the company can take pride in the fact that it is a pioneer for many of the technological innovations that it has introduced through its products in the global marketplace. Economic: LG certainly follows good strategies in the markets it operates based on the economic size and the strength of the consumers in terms of variables like disposable

income. Given the fact that the company needs high levels of disposable income from its consumers to buy the products that it makes, the company has followed a targeted marketing strategy aimed at the middle classes in the countries in which it operates. Further, the company enters markets where the business cycle for the products that it sells is in the initial stages unlike the developed countries where the product lifecycle for its range of products is in the decline or the maturation phase. This strategy of entering countries where the products find a readymade market has indeed paid off. Environmental: The Company has started to be conscious of its environmental and social obligations as evidenced in its approach to green policies. Many of the manufacturing facilities of the company are built on environmentally sustainable designs and the company is adopting other practices as well in this regard.