Strategic Business planing presenttion
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lg_presentation.pptxWhat is LG?
LG Electronics, Inc. is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing 87,000 people working in 113 locations around the world.
With 2013 global sales of USD 53.11 billion (KRW 58.14 trillion), LG comprises five business units - Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning & Energy Solution and Vehicle Components - and is one of the world’s leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and refrigerators.
LG Electronics is a 2013 ENERGY STAR Partner of the Year
Strategic plan
Lg WANTS TO IMPELMENT NEW TECHNOLOGIES by increasing smart technology in 2015 by 28%. LG can achieve this by becoming more competitive with marketing by presenting themselves as a purveyor of designer smartphones, laptops and tablets. In order to do so more money for marketing has to be set aside in the annual budget.
TABLETS
LAPTOP/COMPUTERS
PHONES
MISSION STATEMENT
LG Electronics continues to pursue its 21st century vision of becoming a worldwide leader in digital—ensuring customer satisfaction through innovative products and superior service while aiming to rank among the world’s top three electronics, information, and telecommunications firms by 2010.
Vision statement
On our way, we hold tight to a philosophy of “Great Company, Great People,” underscoring our belief that only great people can create a great company.
LG strives for greatness in what we’ve identified as our three core capabilities: Product Leadership, Market Leadership, and People Leadership—each strength a key part of realizing our growth strategies for “fast innovation” and “fast growth”
SWOT Analysis
StrengthS
Wide range of products to serve all categories and a strong focus on technology and quality
Subsidiaries enjoy independence in decision making and hence have flexibility in adapting to the local market
Effective localization of product offering for growth markets like India, Brazil, China
Weaknesses
Brand lacks influence in the opinionated segment of early adopters especially in the social media environment
Brand has limited market share compared to market leaders
SWOT ANALYSIS cont.
Opportunities
Fast growth of home appliances, electronics good market in emerging economies
Convert improved brand image and awareness into market share
Increase the already Wide product portfolio
Create more products such as tablets and electronics
Threats
Price war with close Korean competitors like Samsung can disrupt growth
Urban demand
Instances of false claims can erode brand value and consumer trust
High competition with Samsung and Apple
How Will We Organize Ourselves?
Strong, Supported, Stick
Avoid project chaos(why bother making smartphones/laptops if the money for marketing isn’t there?)
Stop wasting resources on less important products
Who Will Do It? How Much Can They Spend?
Do not fit the budget into the strategy.
Right people, right time for the project/never enough resources.
Leadership reinforces importance of the product.
Delegate Accountability/Establish core project teams
What Exactly Must Be Done?
Project management saves time, money and can lead to company success by staying on top of resources and utilizing their assets.
Creative use of time is imperative to the success for constant innovation. Constant innovation = desirable product and consumer lifestyle.
INSERT FIGURE 8.1
Our Drivers…
Great visions and innovation come from change drivers.
Business Drivers are key pieces of a business that have a great impact on the performance of the business. Therefore our group proposes that LG should become a bigger competitor in the market as a trendy technology brand.
LG currently doesn’t have the public’s attention the same way that Apple or Samsung does and we believe the cause of that is their lack of public presence(ex billboards, tv ads etc.)
Of the hundred millions of smartphones sold each year we believe that LG’s next step to insure profitability should be to make it their goal to become the lifestyle technology company that Apple is.
Apple has become super profitable because their products are attractive, the consumer’s praise and admiration of Apple’s founders are great examples of living the American dream. The public is constantly bombarded with Apple marketing reaffirming their brand loyalty and excitement around Apple products.
What we propose…
Promote discounts to startups and other tech companies to exclusively use LG phones/laptops& make commercials of said companies using LG products. Perk to startups, free business promotion. Since LG doesn’t have American icon’s like Apple’s Steve Jobs/Bill Gates LG needs to take the initiative to jump on a popular bandwagon that’s trending in America like startups, tech companies, designers etc.
Revamp website/logo
Resource Pool Role
Assigned skilled resources where they are needed
Reducing political conflicts of interest
Improving project staff hiring performance
Supervising weaker project managers
Developing project management skill base
Reducing investment in specialized staff
Reducing attrition of non project skilled resources
fixing failing projects
LG Electronics Performance
Sales: Increased by 39% YoY and by 17% QoQ to 4.2 trillion won
Achieved 14.78M units of smartphone shipments (YoY 39%↑, QoQ 16%↑)
Improved LTE sales by 114% YoY and by 25% QoQ due to the global launch of G3
Total shipments in North America increased by 39% QoQ thanks to the launch of G3 and stronger L-Series sales
Total shipments in domestic market decreased by 22% QoQ due to weaker demand
Profitability: Despite increasing marketing expense, profitability improved widely QoQ and YoY due to the global launch of G3 and stronger sales of L-series Ⅲ
LGE : Plan to maximize sales in premium segment especially for G3 and strengthen the mass-tier line up with G3 variation models and L-series Ⅲ in spite of weaker demand in domestic market and intensified price competition driven by competitors
Market: Expect smartphone market to grow continuously with seasonality, especially for the LTE market. However, competition to gain market share will be intensified due to the launch of new models in the premium segment from competitors, and price competition will be intensified as a result of the sales expansion in the mass market
LG KPI
Increase SALES OF SMART PHONES by 15% by 2015
Increase marketing sales by 42% yoy growth
Increase production of lg laptop & computers by 31%
