LG and Philips both have strengths in their global presence, brand recognition, and investments in research and development. However, they also face weaknesses such as management issues, product recalls, and legal complaints. Opportunities exist in growing markets and partnerships, but threats include intense competition, regulations, and rising costs. Their resources and strategies must be valuable, rare, imperfectly imitable, and non-substitutable to achieve competitive advantage.
LG and Philips both have strengths in their global presence, brand recognition, and investments in research and development. However, they also face weaknesses such as management issues, product recalls, and legal complaints. Opportunities exist in growing markets and partnerships, but threats include intense competition, regulations, and rising costs. Their resources and strategies must be valuable, rare, imperfectly imitable, and non-substitutable to achieve competitive advantage.
LG and Philips both have strengths in their global presence, brand recognition, and investments in research and development. However, they also face weaknesses such as management issues, product recalls, and legal complaints. Opportunities exist in growing markets and partnerships, but threats include intense competition, regulations, and rising costs. Their resources and strategies must be valuable, rare, imperfectly imitable, and non-substitutable to achieve competitive advantage.
LG and Philips both have strengths in their global presence, brand recognition, and investments in research and development. However, they also face weaknesses such as management issues, product recalls, and legal complaints. Opportunities exist in growing markets and partnerships, but threats include intense competition, regulations, and rising costs. Their resources and strategies must be valuable, rare, imperfectly imitable, and non-substitutable to achieve competitive advantage.
2. Pestle analysis of LG and Philips 3. Value chain analysis
4. Swot Analysis of lg and Philips
5. VRIN of lg and Philips 6. Financial analysis of lg and Philips 7. conclusion PESTLE Analysis of LG and Philips -Pretty Patuwari Pestle Analysis of LG & Philips Political Factor
LG Philips
• U.S Trade Tariffs
• In the LG electronics Inc. Political analysis include: • Brexit Uncertainty forcing companies to shut down facilities in European Market • High import duty • Due to unfavorable political factors, the • Plants in tax incentive company may encounter difficulty in • Export promotion schemes of the planning and managing operations. Government Pestle Analysis of LG & Philips Economic Analysis
LG Philips • The economical analysis include: • Emerging markets • Increase in per capita income • Rising demands of modern healthcare • Growing GDP high disposable income and electronic appliances.
• Increase in spending and product costs. • Increase in sales due to merging markets across all business Social Analysis LG Philips
• Social analysis include: • Growth in Male grooming products
and increasing life style with focus on personalized health
• Enhance customer needs • Highly influenced by social trends such
as growing demand for better healthcare • Desire to attain social status and an at lower cost. increase in the number of nuclear family. Technology Analysis
LG Philips
• It focuses on acquiring advanced • Employing digital disruptions to
technologies to drive forward understand customer needs • The improvement in tech they • Philips constantly invest on made the electronic product technological advancement to reduce cheaper energy consumption and hazardous • Its goal is to lead global electronic substances. and information technology • R&D in development of new worldwide. generations and green products. Legal Analysis
LG Philips • Legal maze of various lawsuits • Compliance risks related to safety and • Implementation of new Government data privacy regulations • Consumer protection laws sparking Eu • Electronic waste Compliances antitrust fines • Health and safety laws implemented after witnessing the horrible conditions of employees. Environmental Analysis
LG Philips • LG electronics is committed to the • Focusing efforts on sustainability and program’s mission of achieving superior healthy planet energy efficiency • Efficient waste management techniques • Rise of ethical consumer • Developing green technology and • Rise in the demand of AC and refrigerators products. with increasing global temperature. Porter’s Five Forces of Lg and Philips -Suraj Sharma Competitive Rivalry
LG Philips • High Competitive rivalry as there are large • High competitive rivalry number of players in market • High product diversification such as lighting, • High end electronics tech has led to increased healthcare, professional display and dictation price competition solutions. • Prime competitors are Samsung, Sony, Haier, • The Philips group is moreover on basis of and others diversity, development within the sectors • No product differentiation. • The competition is related to entrance in the market Threat of New Entrants
LG Philips • The threat of new entrants is Medium • The threats of new entrant is Low • The tech being used in the consumer • High scale economy and constant innovation electronics is evolving and hence making is another barrier to new entrant difficult for new entrants • The electronics industry needs huge amount • Other entry barriers are capital investments, of capitals brand equity and economies of scale • The government policy acts as entry barrier • Beside these barriers many companies have for a new company to enter the market. been successful to enter market. Bargaining Power of Suppliers
LG Philips • Bargaining power of suppliers is Low • Bargaining power is High • Entered into cooperate relationships with its • Powerful suppliers possess more power to suppliers through shareholders capture value for them by demanding high • Supply of quality but low-cost parts as it price. keeps its suppliers onboard during product • Limiting the quality and the quantity of the development product by transferring the cost on the • The suppliers switching cost is not high for participants of the industry LG. • More concentrated than the industry it is selling to. Bargaining Power of Buyers
LG Philips • Bargaining power of Buyers is High • Bargaining power of Buyers is High • Many companies that make exact product that • Similar manufacturers of electronic goods LG makes • The information tech provides the customers • Wide array of options for customer to choose with wide range of alternatives when purchasing electronics • There is almost no switching cost from one • The switching cost is low for the buyers. brand to another Threat of Substitutes
LG Philips • Threat of substitutes is Low • Threat of substitutes is High • Majority of LG products such as washing • Its product are an alternatives that are machines, air conditioners, are not available in the market at comparatively better substitutable prices • They don’t have alternates in the market • The substitutes are dangerous as the • It doesn’t have to worry about its products companies are under constant threat of being being substituted. replaced • High threat of substitutes lead to low profitability. Swot analysis of LG and Philips -Simon Shrestha Swot Analysis LG & Philips
Strength
LG Philips • Global Giant • Strong market position throughout • Extensive distribution system all segments
• Diversified products across the • Inorganic growth will increase
categories: revenue streams
• Brand equity • Strong focal point on R&D
Swot Analysis LG & Philips
Weakness
LG Philips
• Management • Product Recalls in recent times
• No Cash cows • Legal Complaints Swot Analysis LG & Philips
Opportunity
LG Philips • E-Commerce Growth • Changing lifestyle • Growing male grooming market • Strategic Partnership Swot Analysis LG & Philips
Threat
LG Philips • Intense rivalry inside the • Competitive Business industry Environment • Stagnant Urban demand • Counterfeit goods dynamics • Rising labor costs • Government Regulations • Rising Raw cloth cost Vrin of LG and Philips
-anmol basnet Vrin of Lg & Philips
Valuable • The company must have some resources or • It shows that the financial resources of strategies that can exploit opportunities and Philips are highly valuable as these help in defend the company from major threats. investing into external opportunities that • If the company holds some value then arise. answer is yes. • They also help Philips in combating external • Resources are also valuable if they provide threats. customer satisfaction and increase customer • The employees are also loyal, and retention value. levels for the organization are high. • The value may create by increasing • All of this translates into greater value for differentiation in existing product or decrease the end consumers of Philips products. its price. Vrin of Lg & Philips
Rare • The resources of the Lg Electronics • The financial resources of Philips are company that are not used by any other found to be rare according to the VRIN company are known as rare. Analysis of Philips strong financial • Rare and valuable resources grant much resources are only possessed by a few competitive advantages to the firm. companies in the industry. • When more than one few companies uses • The local food products are found to be the same resources and provide competitive not rare as identified by Philips VRIN parity are also known as rare resources. Analysis. These are easily provided in • The competitive parity is not desired the market by other competitors. position, but the company should not lose its valuable resources, even they are common. Vrin of Lg & Philips
Inimitable • The resources are costly to imitate, if other • The distribution network of Philips is also organizations cannot imitate it. very costly to imitate by competition as • Imitation is done in two ways. One is identified by the Philips VRIN Analysis. This duplicating that is direct imitation and the has been developed over the years gradually other one is substituting that is indirect by Philips competitors, who would have to imitation. invest a significant amount if they are to Any firm who has valuable and rare imitate a similar distribution system. resources, and these resources are costly to imitate, have achieved their competitive • The patents of Philips are very difficult to advantage. imitate as identified by the VRIN Analysis of Philips . This is because it is not legally • The resources should also be perfectly non sustainable. The reasons that resource allowed to imitate a patented product. Similar imitation is costly are historical conditions, resources to be developed and getting a casual ambiguity and social complexity. patent for them is also a costly process. Vrin of Lg & Philips
Non- profitable • The financial resources of Philips are organized to • Resources, itself, cannot provide capture value as identified by the VRIN Analysis of advantages to organization until it is Philips. These resources are used strategically to organized and exploit to do so. invest in the right places; making use of opportunities and combatting threats. Therefore, • A firm (like Lg Electronics) must these resources prove to be a source of sustained organize its management systems, competitive advantage for Philips. processes, policies and strategies to fully • The distribution network of Philips is organized as utilize the resource’s potential to be identified by the VRIN Analysis of Philips. Philips valuable, rare and costly to imitate. uses this network to reach out to its customers by ensuring that products are available on all of its outlets. Therefore, these resources prove to be a source of sustained competitive advantage for Philips. Value chain analysis of Lg and Philips -Srilab Shrestha Value chain of LG • Outsourcing: LG has been depending on outsourcing for the reason that remaining year as the company shifted 30 percentage of its manufacturing to ODMs in order to shave off expenses for its money-losing telephone business • Joint- Venture with China: LG will set up an electric powered automobile battery joint mission with Geely Auto, the largest automaker in China. LG two introduced on June 13 that it would invest 103.4 billion won to set up a 50-50 electric powered vehicle battery joint assignment in China. The joint task is predicted to produce 10 GWh electric powered automobile batteries a year. • Shutting down factories: LG Electronics Inc. plans to relocate its Korean smart phone manufacturing line to Vietnam in a bid to reduce fees for its money-losing cellular business, The South Korean tech firm will section out its Pyeongtaek factory, south of Seoul, by using the cease of 2019, getting prepared to shift the manufacturing line to Hai Phuong, a northern Vietnamese town the place different LG associates function factories. Value chain of Philips • Outsourcing: Philips outsources gear lamps to China are due to the political environment, monetary surroundings and technological environment. For the political environment, because there is no political chance in China such as inflation, so the operating price won’t be high In the economic aspect, due to the large population in China, Philips believed that the patron buying power over there will be high. • Joint- Venture with China: Philips joint assignment with China is due to the fact in China their labour fee will be lower than in Netherlands. This is due to the fact China has a giant population, so there are many people can work, and the earnings of employee will be cheaper. • Move all factories to Thailand: Philips moves all lamps manufacturing manufacturing unit to Thailand is due to the geographical region of Thailand. Since that Thailand is situated in a accurate location, which is nearby to Malaysia, Singapore, Hong Kong and others Asia Pacific. Financial analysis and conclusion of lg and Philips Pratik ranabhat Financial analysis of Lg and Philips Conclusion of LG
• The LG announces the core capability and environment development product to develop in a certain level. This makes LG a wide brand image of the product. • LG employee has many skills and talented to increase its innovative technological products to customer. • There is still some lack into the marketing mix like pricing strategy and promotion strategy to reach the customer. • In future, LG must improve its pricing strategy like to cut the cost of the existing product by the way of minimizing its process and it must increase time utility. • There are many competitors who have arise for LG product. So the technology has concerned it should increase to implement in timely manner. • This will increase to capture a more market in future. I hope the LG electronics and other components have more capability to reach their customer. Conclusion of Philips
• Philips has done so all aspects of your design.
• It has also examined closely the operations to ensure that the "sense and simplicity" has been leading the whole society. • "Sense and Simplicity" is a promise that includes Philips collaborates closely with its customers through market research. • It also works with outside experts such as the simplicity of the Advisory Council to create a way of working outside. • Philips has always been associated with value-added products of high technology. However, in the past, it would have benefited from having a stronger brand image. • The repositioning of the situation on the basis of "sense & simplicity" to help the public to understand better. • Philips is a consumer organization that focuses continuously and adequately easy-to-use solutions for everyday needs through the applications of the latest technology.
