LG is one of the best electronic manufacturing companies in India. Due to the recent increase in sales of OLED TV’s, its TV market share globally was recorded at 19.2% in the first quarter making it the all-time high. It has sold a total of 7,279,000 units including LCD and OLED worldwide.
LG Electronics has gained well-known popularity in past few years. People love using its products and are happy with the latest technology used by the company in every new product they launch.
Thus this makes us keen to know about its strengths and weaknesses they have faced.
In this blog, we will look into the SWOT analysis of LG and see what were its strengths, weaknesses, opportunities, and threats.
Before we start with its SWOT analysis let us know about it as a company.
ABOUT THE COMPANY
LG is a South Korean gadget-producing global organization. Koo In-hwoi was the founder of LG and established the framework of the organization in October 1958 under the name of GoldStar. They changed the name to LG Electronics Inc. in January 1995. The headquarter of LG is in Yeouido-dong, Yeongdeungpo District, Seoul, South Korea.
Cell phones, appliances, sun-oriented modules, wearable gadgets, PC screens, washing machines, refrigerators, home theatre frameworks, TV, vehicle elements, air arrangements, and numerous other shopper items are a portion of the fundamental products of LG.
As per an estimate, the yearly revenue of LG in 2020 was 17.429 billion US dollars, and it has diminished by 18.03%. Out of which, the overall gain of the electronic brand was – 1.906 billion dollars, and it has expanded by 152.67%.
Now that we have known about it as a company, let us now see its SWOT analysis.
SWOT Analysis of LG
SWOT Analysis is analyzing the strengths, weaknesses, opportunities, and threats of LG. It helps a brand to analyze their flaws and work up to the mark for their customers and even themselves.
Now let us start by looking at the strengths of LG.
Strengths are the areas where the company has excelled. This factor makes the company unique from its competitors. Let us begin exploring the strengths of LG.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
LG is a profoundly dynamic association in social roles, and the organization has confidence in the equivalent circulation of wealth. The organization has utilized 83000 individuals to deal with the organization’s different activities around the world. That is how the organization is assuming its part in making business, employment opportunities for people, and numerous other social exercises.
LG has an assorted item portfolio. It implies that the organization isn’t depending on the offering of few items only. The organization has procured market honour in offering different items. It’s one of the strong qualities of the brand.
PROGRESSED DISTRIBUTION NETWORK
LG provokes interest in its items by utilizing the pull strategy. Alongside the force system, the brand sets up associations with different neighbourhood and provincial merchants. They make the item accessible to clients across the world. In any case, the developing interest pushes retailers to keep an additional supply of items.
As indicated by a gauge, LG is maintaining its business realm over 128 nations across the globe. The brand has utilized more than 83,000 workers around the world. Individuals perceive the brand on account of its unwavering quality, advancement, and innovative work.
Now let us see the weaknesses of LG.
LOWER MARKET SHARE
LG has a restricted piece of the pie in the cell phone industry than other world’s driving brands like Huawei, Samsung, Apple, Xiaomi, and others. They’re diminishing the organization’s productivity. Nonetheless, there are reports that LG will leave the cell phone industry in 2021, and centre around other shopper electronic items regions. LG possesses this weakness as its competitors are working on increasing their market share in the industry. LG works on technology well but not on the outer factors that lead to a developed brand.
RESTRICTED SOCIAL MEDIA INFLUENCE
LG hasn’t been dynamic on the web-based media stages like Facebook, Twitter, Linked In, Instagram, TikTok, and others. These stages have billions of clients. When an organization doesn’t remain dynamic on those stages, then, at that point it’s restricting its development. Since social media has played a vital role in managing the brand image, LG lacks terribly on this part.
Now let us move on and look at the opportunities for LG.
ORGANIZATIONS AND ALLIANCES
LG ought to think about procurement and organization with other more modest and new companies; it would expand the item portfolio and the organization’s growth. For example, the organization purchased Zenith Corporation in 1995. Alongside portfolio extension, the associations and coalitions additionally increment.
LG must go into the business sectors of creating markets, if the organization stands out for them, it would expand its market share with a ton of new clients’ data set. Since the industry is vast and growing tremendously over the period, LG must overcome its weaknesses and bombard the various sectors to increase its productivity and maintain goodwill.
POSITIVE IMPACT OF COMPETITION
The developing competition has established a climate of development and efficiency. LG is putting resources into advancement and innovative work to acquire rivalry. Different contenders are doing likewise. All in all, all the tech organizations are pushing every other development.
Tech electronic items have become a fundamental piece of our lives. The utilization of mobile phones, TVs, the web, and numerous other electronic machines are expanding the interest in LG’s items. LG should now focus on its clients’ market with the most recent customer electronics and advance that it could make their lives simpler.
Now lastly we shall see the threats for LG.
WRONG GREEN CLAIMS
LG has made wrong claims many a time throughout the years about its items being harmless to the ecosystem. The organization needed to pay 3 million on its illegitimate cases about energy-productive climate control systems. It brought about the type of negative standing of the organization.
CONTEST and PRICE WAR
The shopper electronic items and cell phone market have gotten serious. It has squeezed every one of the worldwide makers to foster something new and acquire a serious. Nonetheless, tech organizations are at a value battle with each other to draw in the consideration of clients.
Samsung, Philips, Electrolux, Poly, Apple, Seiko Epson, iRobot, Panasonic, Xiaomi, Oppo, and Vivo are a portion of the primary contenders in the market.
After an in-depth study of the swot analysis of LG, we conclude that it has managed its brand identity and its quality of products in the market very well.
Some of its strengths are that it has a diverse product portfolio in the market giving different choices to its customers, it has well managed its corporate social responsibilities, and has a progressed distribution network.
The major weaknesses in the brand in that the smartphone line of the company is not doing that well and its social media presence isn’t that good too.
Whereas it does have some opportunities in the market which are the growing markets in the recent years, the positive impact of its competition and the changing lifestyle of its customers.