Background of Industry

 Consumer durables market in India is valued at

US $4.5 billion currently
 Electronic gadget that has brought new revolution

in Indian Electronic industry is Television Set

 Penetration level of color televisions is expected

to increase 3 times by 2008

 In recent years, the market for television in

India has changed rapidly from the

conventional CRT technology to flat Panel
Display Televisions.(FPTV)
LG-Life’s Good
LG Electronics India Pvt. Ltd., a wholly owned
subsidiary of LG Electronics, South Korea
Facts & Figures
 Established In : Jan 1997
 Managing Director : Mr. Moon B. Shin
 Corporate Office :Plot no51, Udyog Vihar, Surajpur Kasna Road,
Greater Noida (UP)
 Corporate Website : http://www.lgindia.com
 Number of Employees: 3000+
Strategic Business Unit of LG

TV/AUDIO/VIDEO

LCD TV PLASMA HOME MUSIC DVD

LED TV COLOR TV
TV THEATRE SYSTEMS PLAYERS
Marketing Myopia in Color Television Industry
1993-94 2007-08
35
30
30

25 25

20 20

15
15
10
10
5

0 5

0
LG SAMSUNG SONY VIDEOCON ONIDA OTHERS

Reason for failure

•They lagged behind in technology
•They offered a small range of products
•Poor after sales services
Portfolio Analysis-BCG Matrix

LCD TV PLASMA LED TV

TV

CRT TV Music Systems

Porter’s Five Force Model
Threats of new
entrants
Most current players are
global players
New entrants will need to
invest in brand, technology
&distribution.
Medium

Industry Rivalry
Number of well established
Supplier power Customer power
players
Indigenous supply base Multitude of brands across
Good technological
limited-most raw materials price points-wide variety of
capability
are imported choice for customers
Many untapped potential
Low markets High High

Threat of substitutes
Only computer could act
substitutes to some extent

Low
Porter Generic Strategy

Narrow Market
scope Segmentation Strategy

Differentiation Cost
Broad Market strategy Leadership
scope (Golden Eye (Sampoorna
Technology) ,Cineplus)
Sustainability of Competitive advantage
New Innovation in TV’s-Golden Eye Technology

Product Localization-TV menu option in regional language

Distribution Channel-Regional distribution model in India.

Concentrating on cost advantage

Scope of further growth of LG

Large scope of LED

& 3D Television

Net cast
Entertainment
Technology

Lot of untapped
rural market