Many Korean companies are currently actively pursuing globalization. One of the first generation Korean companies which has globalized is LG Electronics. It started fully fledged globalization efforts in late 90s. It is now one of the leading consumer electronics manufacturers in the world. However, in most of the product categories and in many regions, it lags behind not only other foreign players but also its Korea peer, Samsung. Having said that, India is very special country to LGE. In India, LGE is ranked #1 in all the major consumer electronics categories including TV, air conditioner, and washing machines. Based on the market share LGE has, LGE has virtually no competition in India (2005);
In this paper, we will look at LGE’s strategy in India and explain how they have achieved such a strong #1 position which it has not done so in other markets.
LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998 with an investment of Rs 5999 Crores. LGEIL’s manufacturing unit at Greater Noida is one of the most eco-friendly units among all LG manufacturing plants in the world. The second Greenfield facility is located at Ranjangaon; Pune has the capacity to manufacture GSM Phones, Color Televisions, Air Conditioners, LCD TVs, washing machine, refrigerators and Optical Disc Drives. This is India’s first mobile phone manufacturing unit and also Asia’s largest Optical Disc Drive manufacturing plant.
India has still faced following serious problems to be solved as follows. For example, the national income per head is under 500 dollars, foreign loan remains over 100 billion, the level of Deficit financing is 6% of GDP, SOC, such as Road and harbor is not sufficient and the political leadership is lacking because of rivalry between factions. The challenges faced by LG when it entered the market in 1995 as follows;