The company offers products such as mobile phones, televisions, home theaters, laptops, fridges, washing machines, air conditioning and vacuum cleaners. With about 91,000 employees, the revenue brought in was $ 48.976 billion. LG Electronics is a global leader and technology innovator (Sang-hun, 2010).
It operates 5 divisions such as home appliances: microwaves, fridges, ovens, vacuum cleaners and washing machines. Home entertainment: home theatres, plasma televisions, radio and desktops. Mobile communications: mobile phones, personal computers and communication devices. Furthermore, energy solutions and air conditioning are some of the provisions which make air conditioners and LED lighting (Stock, 2004).
Currently, the Australian Football League team of Fremantle Football Club, the Australian national rugby league, and the Argentinean club Boca juniors are sponsored by LG. They also sponsor the international cricket council. LG recycles their products as a way of keeping the environment conducive for their consumers. LG has partnered with World Food Program (WFP) to help eradicate hunger and poverty in the horn of Africa and Asia (Sang-hun, 2010). The company ensures that taxes are paid, and being a global company, it ensures that all cultures are put into consideration.
The employees maintain high standards of morality in protecting the company property by adhering to the set rules and regulations. LG condemns discrimination, promotes creativity and maintains honesty and the company’s honor at all times.
“Life’s Good” Electronics Business Plan
Life’s Good electronics commonly referred to as LG is an affiliate of the LG Group of companies. It operates in 5 divisions such as mobile communications, home appliances, home entertainment, air conditioning and energy solutions. It has approximately 75 subsidiaries across the globe with its headquarters in Yeouido-dong (The Economic Times, 2012).
Being the world’s second largest television manufacturer and the fifth largest mobile phone maker, expansion into new geographic areas is essential in the effort to increase sales and overcome competition. The best region to venture into in the African continent would be Sudan and Rwanda. These two countries have worked on attaining peace and have been able to achieve it now. Their development has also been able to attract new business opportunities from various companies. The two countries offer untapped sources of sales (Stock, 2004).
Sudan and Rwanda having gained peace are at a process of building their economies. Hence, they have proven the potential to offer promising markets. LG electronics being an all rounded producer of equipment used at homes opens an untapped market. Also, these equipments can be used in offices. These two countries are known for the hot environmental atmosphere and equipments such as the air conditioning will make great sales. Since Sudan has an oil source, the energy solutions equipment will be put in place in order to minimize costs on energy used in industries.
With the introduction of the various smart mobile phones into the market, the middle aged, middle class people offer a great target market for this product. With the weather conditions in the two countries, every household is a target market for air conditioners. As a source of entertainment, LG should be a household name for every person as these products come in different sizes and prices. With the diversity in the line of products, it enables the company to have something for everyone (Moore, 2005). Change brought about by technology across the globe has pushed nations into adapting to the change so as to connect with the rest of the world.
Technology has turned the world into a small village and it is essential for every country to be a part it. As a means of connecting with the rest of the world, products such as the Internet enabled mobile phones, laptops and desktops offer people facilities, i.e. access to the social media sites that help in interactions and obtaining of information. Another target market for the mobile communication is the college/university students. This will create sales as they will need to complete their course work which includes assignments given to them that require research which can be facilitated by the technology-based products. Portability of laptops makes it even easier to work from any position and the best factor is the differentiation in size, the machine’s features and capabilities, and the available applications in the products give a reason to differentiate prices in order to satisfy the needs of the different consumers.
Due to the different needs of consumers, it is essential to segment them depending on these needs and preferences so as to identify which product suits best which category of consumers. Some products will be released into the market with considerations of age (the younger generation will tend to purchase the more complicated equipment with their ability to understand them better) (Sang-hun, 2010). Lifestyles of the individuals will be considered as some products are more of luxury electronics than necessities at homes. An example is the home theatre and plasma televisions. These electronics are enhancements that make life more comfortable rather than are a necessity.
The controllable variables of the countries will include the target market segmentation of the consumers which will purchase the products. The type of products that will be released to the target market and the acceptability to the consumer, the pricing of the products in the new markets and adjustments that must be made like discounts as a promotional factor will be considered. The channels of distribution employed must also ensure the products reach the target market (Mulcaster, 2009).
The uncontrollable variables include the competition which cannot be locked out from selling their products in the same markets. In Sudan, there is the probability of political instability. Their neighbor country South Sudan is still going through rough political patches and having being separated from them may raise a problem in operations of the company. Having been at war, the countries are improving their economic welfare and have relatively stabilized. With the presence of petroleum in Sudan, their currency is quite strong as compared to other African counties.
In the effort of making known the air conditioners which are considered to enhance sales due to the hot weather, a promotion will be held in all major outlets. Immediately the product is launched in the market the first ten purchases in every outlet will receive a discount of 5%. The next ten purchases (11-20) from each outlet will receive a 2% discount. This will ensure a rush for the product and it being a necessity will enable the company increase sales. Each of the products will have a one to two year warranty so as to enable the consumer gain confidence while using the equipment. This gesture also proves that the company is confident in their products to the extent that it is sure the consumer will be able to use the product with minimum damages.
Human Resource Recruitment Plan
While the company is expanding, employees are an asset that if well chosen and trained, it pushes the company’s brand a long way towards prosperity. Expansion will create job opportunities in the respective countries. As a means of ensuring that the company has experienced personnel in every outlet, the management will ensure that the current staff members across the globe are selected and reposted to these countries.
After the recruitment process is complete, 10% of the new recruits will be posted across the globe so ass to replace the current employees who have been posted in their countries. This procedure will ensure that there are experienced employees at each post who will be able to teach the new employees the techniques of the company, and how best to increase sales. LG being a global company, will easily embrace the diversity in cultures at the workplace since it has worked with employees with different ethnic backgrounds from across the world. 55% of the recruits should be people with the countries’ nationality in order to enable the company relate easily with the target markets and portray a sense of belonging to the natives. They can relate to their fellow countrymen much better than to foreigners, especially in Rwanda after the war. Also, it portrays that the countries’ resources are being utilized within the country and not being exploited to satisfy and benefit foreigners.
LG electronics being a technological company has a well established research centre that is dedicated to addressing the satisfaction of customer demands. Technology is changing over time but this is taken care of as LG has trained excellent designers who can predict future changes to create new and current technological concepts (Sang-hun, 2010). The four core design concepts addressed by the company include style, concept, interface and finish. These put into consideration will help in the innovation process in order to create great designs, thus, meeting customer expectations at all times. As a result, it would defeat competition, any kind of competition.
LG has the capacity and potential to expand into more countries, thus opening up new markets for the current products that have already proven successful in their current markets. The two ways for the company to seize the opportunity is by venturing into new markets and by constantly creating new products in the market before its competitors, thus, acting as a market leader instead of a market follower.
With the provision of job opportunities without any form of discrimination, the company has a readily acceptable approach in the society. Incorporating all the cultures across the world will give an open opportunity to venture into new lands.
LG has also promised to reduce the impact of its activities on the environment and consumers prefer to relate to a company that puts them at the fore front of their activities. To measure its success in the future, the increase in sales per unit, the increase in revenue and beating the competition to become a market leader will prove the success of the company.
Furthermore, LG will expand globally in the effort to gain new markets for their products and conquering competition before they are swallowed in by the competition which will result in losing the current hold of their market share. The ability to capture a market and maintain it confirms the success of the products and the ability to satisfy customer needs.
LG electronics being a household name targets the larger majority of the population with something for everyone. Depending on the product being launched into the market, then it will determine the target market as of that time. The idea of new products may not arise but through innovations, the company will be able to add value to the current products which will constantly ensure customer satisfaction. To achieve this, LG electronics has partnered with some subsidiaries to maximize on production of the best yet affordable products.
LG electronics has embraced advancement in technology to meet the consumers’ expectations. It has focused on keeping the slogan of making life good for its customers. It is also a one-stop-shop for all household appliances which are at the state of the art designs as exemplified by their performance which is up to standard. Durability is a consideration since all LG products are built to last long. LG electronics are the way to go.