BCG Matrix on

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Overview of LG The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washingStar, producing radios, TVs, refrigerators, washingmachines, and air conditioners. The LG Group was amachines, and air conditioners. The LG Group was amerger of two Korean companies, Lucky and Gold Star,merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The from which the abbreviation of LG was derived. Thecurrent "Life's Good" slogan is a acronym. Before thecurrent "Life's Good" slogan is a acronym. Before thecorporate name change to LG, household products werecorporate name change to LG, household products weresold under the brand name of Lucky, while electronicsold under the brand name of Lucky, while electronic products were sold under the brand name of Gold Star. products were sold under the brand name of Gold Star.In January 2009 LG was able to buy the domain name,In January 2009 LG was able to buy the domain name,LG.com, placing it among the companies who own their LG.com, placing it among the companies who own their two letter brand's domain name.two letter brand's domain name. Vision LGs vision is to deliver innovative digital products and LGs vision is to deliver innovative digital products and services that make our customers lives better and easier services that make our customers lives better and easierhappier, evenhappier, eventhrough increased functionality and fun.through increased functionality and fun. Brand Identity

LGs brand identity focuses on self LGs brand identity focuses on self-expression and a expression and a promise of satisfaction to its customers. promise of satisfaction to its customers. Facts & Figure Established In : Jan 1997 Managing Director : Mr. Moon B. ShinManaging Director : Mr. Moon B. Shin Corporate Office : Plot no51, Udyog Vihar, Surajpur Kasna Road,Greater Noida (UP)Greater Noida (UP) Corporate Website : http://www.lg.comhttp://www.lg.com Number of E mployees: 3000+Number of

Business Areas & Main Products Home Entertainment Plasma Display Panels, LCD TVs, LED TVs, Color TVs, Audios, Home Theatre System, DVD Recorder/Player, Blu Ray Players Home Appliances Refrigerators, Washing Machines, Microwave Ovens, Vacuum Cleaners, Air Refrigerators, Washing Machines, Microwave Ovens, Vacuum Cleaners, Air Purifiers AC Split AC, Window AC, Commercial AC Business Solutions LCD monitors, CRT monitors, Network Monitors, Graphic Monitor, Optical LCD monitors, CRT monitors, Network Monitors, Graphic Monitor, Optical Storage Devices, LED Projectors, NAS (Network attached Storage) and Digital Signage. GSM

Smart Phones, Color Screen GSM Handsets, Camera Phones, Touch ScreenSmart Phones, Color Screen GSM Handsets, Camera Phones, Touch ScreenPhones, 3G Phones, Multimedia Phones, Dual SIM Phones, CDMA Phones. BCG Matrix

Explanation
Questions MarksGrowing Rapidly Large amount of cash consumption Low market shares Do not generate much cash
Large net cash consumptio n

In relation to LGs computers,

From its early beginnings LG Computers has prided itself with providing high quality services and itself with providing high quality services and outstanding customer support to both home and outstanding customer support to both home and business users alike The computers of LG are in this category as there many competitors in the market with low prices, attractive features, new tech. eg could be like Dell Which has the biggest market share in the country.

STARS-

Strong relative market share Generate large amount of cash High growth rate Large amount of cash consumption
Cash in each direction nets out

In relation to LG Television,
LG aimed to increase its global market share in LCD TVs to 15 percent this year from 11 percent last year by boosting unit sales by 54 percent. LG Display expects to spend between 4.5 trillion won ($3.90 billion) and 54.5 trillion won ($3.90 billion) and 5trillion won this year confirmed its 2010 sales target for liquid crystal display (LCD) TVs at 25million units.

Cash cows
Profits and cash generation should be high .Because of the low growth, investment which are needed should be low. Cash cows are often the stars of yesterday, they are the foundation of yesterday. In relation to LGs white Goods,

DOGSLow Market share Low growth rate No generation & Consumption of large amount of cash.

However, DOGS are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture.

In relation to LGs Mobile,

In its fiscal second quarter, reported handset sales were down 30.8% Y-O-Y , for a 120 billion (won) loss, and it reported an

overall net profit decline of 33% in the quarter compared with last year. The cause is nothing but stiff competition from Samsung. Because of the struggling market share LGs mobile division CEO Narmyong has resigned from his post after serving 3 years. And during this period LG mobile share fell 30%.