LG's Competitive Advantage

COMPANY	AREA OF OPERATION	NET SALES IN 2011-12 (IN CRORES)	NET SALES GROWTH RATE (5 YEARS)
Samsung	Construction, Electronics, Financial Services, Shipbuilding and medical services	20,000	40
LG	Electronics, Financial Services, Accessories	16,000	35-40
Sony	Electronics, Games, Entertainment and Financial Services sectors	6,300	35-40
Panasonic	Electronics, Financial Services, Accessories	5,500	25
Whirlpool	Electronics, Automobiles, Power etc	2,704	21

               

1.     SAMSUNG

It is South Korea based consumer electronics major headquartered at Seoul. Company is a market leader and has a very strong image in all of its product line especially for Mobile phones. Company had a revenue of around Rs 20,000 crore during 2011.

STRENGTHS:-

• Very large investment on innovation as compared to others over the years.
• It offer customized products to customers based on their demands.
• Strong R&D team.
• Company has a large customer base.
• Strong infrastructure and financially sound.

WEAKNESSES

• Their products are not very user friendly.
• Facing strong competition from other players.
• Ignoring their core competence.
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2.     SONY

Sony is a Japanese multinational corporation headquartered in Tokyo, Japan. Its has a very diversified business primarily focused on electronics, games, entertainment and also financial services sectors. Company is one of the leading manufacturers of electronic products for the consumer and professional markets. The company had revenue of about Rs. 6,300 crore in 2011-12.

STRENGTHS

• Strong brand image.
• Company is very technologically sound and always tries to improve it.
• Company posse’s vast product line.

WEAKNESSES

• Company is losing their market share to Samsung & LG in last few years.
• Not concentrating on their core competencies which are Gaming etc.
• Indirect competition from cell phones, game pads etc.

3.     PANASONIC

It is world renowned Japanese electronics and home appliances company headquartered at Osaka, Japan. Their main areas of operation are electronics, financial services and also providing parts and accessories. In 2011 company had revenues of around Rs 5,500 crore.

STRENGTHS

• Company has very diversified business operations
• The company is strong financials over the years.
• Strong distribution network.

WEAKNESSES

• Per employee productivity is very low.
• Unsatisfied employees due to insufficient post retirement benefits
• Economic crisis resulted in adversely affecting the company.

4. WHIRLPOOL

It is an American manufacturer and marketer of home appliances. It is headquartered at Michigan, United States. Company’s main areas of operation are electronics, automobiles, power etc.

STRENGTHS

• Good after sales service.
• Low prices as compared to its peers.

WEAKNESSES

• Weak distribution network.
• There are many well established players in the same segment.