However, major competitors like Samsung and HTC also enjoy the benefits of the chaebol system; Sony enjoys similar advantages in Japan and American firms like Apple have vast resources as well. LG has a strong brand, as do most of its competitors, although the brand enjoys specific advantages in Korea where it has been known for decades. This is an advantage LG has in the domestic market over foreign competitors.
In terms of weaknesses, LG is a latecomer to the mobile industry. This has put LG at a technological disadvantage. Its tablet, for example, underperforms those of competitors in their price range. LG will need to invest more heavily in technological development in order to catch up to competitors in this part of the business. The company will need to improve its hiring and invest more money into research and development in order to close this gap.
The...
LG relies on its market share in Korea and its low financing costs to try to build its competencies in mobile devices. There is opportunity in the rapid technological turnover -- if LG can leapfrog the competition technologically, it can gain significant market share with the next generation of devices. The company should shift some resources internally to ensure that its best developers are working on the next-generation tablet, and that they have the financial resources they need to bring this product to market ahead of the competition. As LG does not have superiority in either financial resources or technological competence, it remains to be seen if the company can execute this strategy successfully or it if will need to contract its mobile device business.
