New Works 08/03

Running Head: LG COMPANY COMPETITOR’S ASSESSMENT 1

LG COMPANY COPETITORS ASSESSMENT 5

LG COMPANY COMPETITOR’S ASSESSMENT

Name of Student: Ruthvik Reddy Gidde

Subject: Marketing Strategies

Institution: New England College

Date: 05/29/2021

LG Company is a South Korean electronics company serving a worldwide market with various home appliances as one of its four business units. The other three are vehicle components, air solutions, and mobile communication appliances (Kalsalari et al., 2017). LG has managed to make its brand a household name, however, it still faces a lot of competition from other electronic companies. LG’s biggest competitors include Philips, Samsung, Apple, Panasonic, and Electrolux. The company’s slogan, “Life’s Good” resonates with the company’s clients who mostly consume their TVs, refrigerators, air conditioners, and washing machines This paper is an assessment of the competitive environment of the company in order to effectively find ways of composing a better marketing plan for the company.

Recently, LG company issues a statement that it had decided to get out of the race for smartphones production so that it can focus its inventions on home appliance, vehicle components, connected devices, artificial intelligence and robotics (lgnewsroom.com). This news means that the company has changed focus to expand its markets on the said products, hence, it is necessary that the company formulates a workable plan. Understanding the competitor’s environment is critical for the company. Samsung, also a South Korean company, occupies a market share of 20.5% in the U.S alone for home appliances (Zhao, 2019). Samsung products differs greatly from LG’s in terms of technology. Many consumers today are interested in products that make their work easier and effective through the use of technology. Samsung is using artificial intelligence to create an interaction between the products and users to make completing tasks an easier thing to do (Zhao, 2019). For example, an artificial intelligent Samsung phone acts like and alarm and also forecasts weather for the user while the washing machine selects the appropriate wash cycle based on the settings of the washing machines, making it less tiresome for the user to reset the machine for new instructions (Prabhu & Krishna, 2019). While LG is adopting the same kind of technology, it does not apply to many of the home appliances such as Samsung does. LG only has a TV with voice interactions and a refrigerator that customizes recipes (lg.com). By being a step ahead of LG, Samsung is capable of growing the market and developing the products before any other company becomes a serious threat to its business.

Marketwise, Samsung has a good coverage in the US and the European countries who are large consumers of home appliances (Prabhu & Krishna, 2019). It is famously known in this markets for most home appliances such as TVs and LCDs as well as phones. It also has a stable production capacity that can easily serve huge demands of their products. Apple, also a competitor in the market, comes second to Samsung in terms of the US and the European markets. Apple is said to have better an enviable digital marketing power that overshadows Samsung and LG Company. It would take a lot of effort to topple this kind of market over without a good marketing plan. There are several opportunities for competition in that are available for LG to grow its market.

Firstly, LG is known for excellent customer relationship management (Kalsalari et al., 2017). It incorporates a lot of factors such as the use of internet and market research to communicate what the markets want and the prices favorable for their products. By doing so, LG sets the standards for affordable, yet reliable products for its market. Another advantage is the fact that the company has all the time it requires to innovate and use technology for developing new products in the market. Although LG has fewer appliances that utilize the artificial intelligence technology, and because it chose to specifically concentrate on improving their invention on home appliances, this is an opportunity for the company to perfect their craft (Prabhu & Krishna, 2019; lgnews.com). instead of worrying about the performance of several products in highly competitive markets such as that of phones, their production will be focused on making the most reliable products that meets the market’s needs.

The market is yet to fully embrace or adopt robots and artificial intelligence enabled home appliances that help people with real activities such as putting dishes in the dish washer for example. The furthest that the appliances have gone is with voice and gesture recognizing appliances such as the case of the TV that recognizes voices (lg.com). There is so much that can be achieved through innovative technologies that LG is capable of handling. Robots can help people to carry out duties that they may not be able to carry out on themselves because of difficulties such as disabilities (Sora et al, 2021). This kind of technology will enable older people or people with disabilities who may be living alone and may require some assistance with completing certain duties.

In conclusion, LG company has a lot of competition from companies such as Samsung and Apple who have larger market shares and several products to over their clients. On the other hand, LG has several opportunities to grow into a big enviable company with several products and services that it can offer the market through improving technology. Coupled with its remarkable customer service management, LG can outdo its competitors as well as improve its market share by large percentages. LG’s choice to narrow its niche is also an advantage to the company since it will be able to grow its name to be known for specific products instead of being generalized.

References

Karsalari, A. R., Saberi, H., & Kalimdast, S. (2017). The Impact Of Customer Relationship Management On Customer Loyalty In Lg Company (Goldiran) Tehran City. Int. J. Acad. Res. Accounting, Financ. Manag. Sci, 7(2), 234-239002e

Prabhu, S., & Krishna Prasad, K. (2019). Implementation Of Artificial Intelligence In Samsung–A Case Study.

Søraa, R. A., Nyvoll, P., Tøndel, G., Fosch-Villaronga, E., & Serrano, J. A. (2021). The Social Dimension Of Domesticating Technology: Interactions Between Older Adults, Caregivers, And Robots In The Home. Technological Forecasting And Social Change, 167, 120678.

Zhao, J. (2019). Haier's Acquisition Of Ge Appliances. Journal Of Business Diversity, 19(4).

https://www.lgnewsroom.com/2021/04/lg-to-close-mobile-phone-business-worldwide/ Accessed May 25, 2021

https://www.lg.com/global/lg-thinq/news/artificial-intelligence-for-a-better-life Accessed May 25, 2021