LG Mobile Company's business strategy and competitive environment

LG Mobile Company

Overview of LG Mobile

LG is a leading electronics company in the global community and its strength is proven by the continually increasing incomes. In 2010 for instance, in the background of the internationalized economic crisis and the numerous bankruptcies of economic agents, LG has registered increases in its revenues. At the end of fiscal year 2010, LG's revenues were of 55,754 billion Korean won, revealing an increase over the 2009 revenues of 55,491 billion Korean won.

LG's decisions and operations are focused on the attainment of profitability objectives, but the organization operates in a manner in which it emphasizes on the needs and wants of its stakeholders -- customers, business partners, the general public and so on. It supports social and environmental responsibility.

In terms of LG Mobile Company, this follows the same desiderates of parent company LG Corporation. It strives to satisfy customer needs and wants and promote general well-being for all stakeholder categories. In implementing this business model, LG Mobile focuses on innovation and aims to become a preferred choice of consumers. It continually develops new technologies and new products, and it is committed to high quality and high levels of customer satisfaction.

"LG electronics mobile Communications Company, a global leader and innovator in the mobile communications industry, constantly sets new trends in mobile technology and helps enrich lifestyles around the world. With strong technology leadership in the mobile industry, LG is at the forefront of delivering new smart devices with innovative features such as multi-core processors, 3D, bright and clear displays, and 4G LTe (Long-Term evolution). With innovations and features such as these, LG continues to roll out an array of market-leading smart devices, raising the bar for consumer satisfaction. Together with its global partners, LG is increasingly helping to shape the course of smartphone platforms while improving customer choice. LG is also well on track to creating an outstanding user experience across its full smartphone lineup" (LG 2010 Annual Report).

2. The task environment

LG Mobile Company operates in a highly dynamic and competitive environment. The demand for the LG products -- as well as for the competitive products -- is sensitive to the general state of the economy. In periods of economic prosperity, the population registers high levels of income, and they as such possess more spending money. This means that LG registers higher levels of demands for its products and as such higher revenues. In times of economic recession however, the population generates less revenues and as such spends less purchasing electronics and mobile devices. Today, the economy is still striving to recover from the internationalized economic crisis, meaning that the next few years could bring about a decrease in the demand for the LG mobile products.

Another threat is represented by the rapid advancement of technology, which forces LG Mobile Company to invest large sums of money into product development. Additionally, there is also the threat of competition and the threat of continually changing customer demands.

At the level of opportunities, the first of these includes the technologic development which allows LG to quickly integrate new features into its products and better serve customer needs. Also, in the context of globalization and opening boundaries, an important opportunity is represented by the fact that the country can cross borders and sell its products into numerous countries.

4. Operational efficiency

The levels of operational efficiency at LG Mobile appear to be medium. The company possesses and uses tremendous financial resources, yet its actual results are rather low. LG Mobile has made a strong statement within the field of mobile telephones, and it has acquired a strong position within this segment. Nevertheless, in other fields, such as the tablet for instance, the performances of LG linger.

The tablet segment is continually expanding and the device is the new must-have for people across the entire world. It as such becomes a need for LG Mobile to improve its operational processes. It has to reallocate its resources among internal processes to ensure that the best people and technologies are concentrated in the development of the LG tablet. Unless this becomes the immediate objective, LG Mobile would lose its competitive position within the market.

References:

LG 2010 Annual Report, http://www.lg.com/global/ir/reports/annual-reports.jsp last accessed on October 20, 2011