CASE 1 LG Vs SAMSUNG
CASE 1: LG Vs SAMSUNG
Question 1
Why do you think LG lost its lead in the consumer electronics sector in India to SAMSUNG?
From the cases LG misinterpret the customer needs. LG was to focus on its appliances categories such as fridge and any other in-house appliances which is an item that people do not buy every day, while Samsung do not focus into one category. Unlike fridge the mobile phone market is emerging like a wild fire, this is because majority of people change their mobile phone once in two years or when there is a new model which can meets the customer specifications whereas only changed their fridge every five to ten years.
Besides that, branding also becomes one of the factors LG lost its edge. As been discussed before, other than fridge, Samsung manufacture other electrical appliances such as television washing machine, fans and etc. which makes the brand is well known by their customer. As LG to focus on one category it make LG laggards and unable to crack the smartphone market. Other than that, there also few reason LG lost its lead such as LG repositioning itself as a premium brand with higher price tags and focus on high-end products as well focus on exclusive stores in a market where a bulk of sales now happen at large multiband chains.
Question 2
What should LG do to regain its leadership?
India has many poor people than the rich persons, thus I believed LG should change their focus from urban to rural market. LG should not underestimate the prospect of penetrating the rural market may bring more profits and higher returns to the business. Here are some strategies that can be done:
Market penetration strategy
The company can penetrate into available market to gain larger market share. The issue of brand loyalty might happen even though a company produce same kind of product. The best way to do market penetration is to attract the competitor’s customers. Because market penetration deals with the market that has the similar product, the
Question 1
Why do you think LG lost its lead in the consumer electronics sector in India to SAMSUNG?
From the cases LG misinterpret the customer needs. LG was to focus on its appliances categories such as fridge and any other in-house appliances which is an item that people do not buy every day, while Samsung do not focus into one category. Unlike fridge the mobile phone market is emerging like a wild fire, this is because majority of people change their mobile phone once in two years or when there is a new model which can meets the customer specifications whereas only changed their fridge every five to ten years.
Besides that, branding also becomes one of the factors LG lost its edge. As been discussed before, other than fridge, Samsung manufacture other electrical appliances such as television washing machine, fans and etc. which makes the brand is well known by their customer. As LG to focus on one category it make LG laggards and unable to crack the smartphone market. Other than that, there also few reason LG lost its lead such as LG repositioning itself as a premium brand with higher price tags and focus on high-end products as well focus on exclusive stores in a market where a bulk of sales now happen at large multiband chains.
Question 2
What should LG do to regain its leadership?
India has many poor people than the rich persons, thus I believed LG should change their focus from urban to rural market. LG should not underestimate the prospect of penetrating the rural market may bring more profits and higher returns to the business. Here are some strategies that can be done:
Market penetration strategy
The company can penetrate into available market to gain larger market share. The issue of brand loyalty might happen even though a company produce same kind of product. The best way to do market penetration is to attract the competitor’s customers. Because market penetration deals with the market that has the similar product, the