Answer For LG
POSITIONING
The diagram above shows that LG’s positioning depends on three relationships which are:
I) The relationship between LG and the customers.
II) The relationship between the customers and LG’s competitors and
III) The relationship between LG and competitors
Both LG and its competitors try to convince customers on why (price, quality, fit for purpose, track record, novelty, etc) they should buy their respective products and not the other. This persuasions and the customers experience help shape customers’ perception of each brand/product, which in turn determines LG’s diffusion of innovations rate.
The most common indicator is how a company’s sales revenue grows (underlying trend) compared to those of the major competitors. This is quite glaring in the case of LG and its competitors, Samsung Sony.
In table 7 & 8 (KPI tables), LG’s growth rate in 2010 fell sharply by 23.5% from a rise of 13% the previous year while Samsung’s growth increased by 11.24% and Sony’s profit also plunged by 7% in the same year. There was a paradigm shift in phone and tablet market from festures mobiles to top-end smart phones of which Samsung got a handle on earlier and raised its global smart phone market share from 3.2% in 2009 to 7.6% in 2010. By then Sony and LG drifted from paradigm trajectory such that their market shares were so insignificant to be grouped among other minor vendors.
However by 2011 (see table 7 & 8) LG managed to stem the rate of decline from 23.5% to 2.5% as it raised its global market share to 4.8%. Likewise Sony raised its market share to 5.5% and witnessed a positive growth of 1% in revenue. Although Samsung managed to push up their market share to 18% from 3%, the growth rate of its revenue plunged to 6% due to lower profit margin from 12.5% to 10.40%, probably the competition led to price war among premium brands and Samsung employed penetration strategy to become the market leader in smart phone market. LG also suffered a slight decline in
The diagram above shows that LG’s positioning depends on three relationships which are:
I) The relationship between LG and the customers.
II) The relationship between the customers and LG’s competitors and
III) The relationship between LG and competitors
Both LG and its competitors try to convince customers on why (price, quality, fit for purpose, track record, novelty, etc) they should buy their respective products and not the other. This persuasions and the customers experience help shape customers’ perception of each brand/product, which in turn determines LG’s diffusion of innovations rate.
The most common indicator is how a company’s sales revenue grows (underlying trend) compared to those of the major competitors. This is quite glaring in the case of LG and its competitors, Samsung Sony.
In table 7 & 8 (KPI tables), LG’s growth rate in 2010 fell sharply by 23.5% from a rise of 13% the previous year while Samsung’s growth increased by 11.24% and Sony’s profit also plunged by 7% in the same year. There was a paradigm shift in phone and tablet market from festures mobiles to top-end smart phones of which Samsung got a handle on earlier and raised its global smart phone market share from 3.2% in 2009 to 7.6% in 2010. By then Sony and LG drifted from paradigm trajectory such that their market shares were so insignificant to be grouped among other minor vendors.
However by 2011 (see table 7 & 8) LG managed to stem the rate of decline from 23.5% to 2.5% as it raised its global market share to 4.8%. Likewise Sony raised its market share to 5.5% and witnessed a positive growth of 1% in revenue. Although Samsung managed to push up their market share to 18% from 3%, the growth rate of its revenue plunged to 6% due to lower profit margin from 12.5% to 10.40%, probably the competition led to price war among premium brands and Samsung employed penetration strategy to become the market leader in smart phone market. LG also suffered a slight decline in