Blue Ocean Strategy Case Study

LG Electronics: The Blue Ocean Strategy

OR

Abstract:
South Korea based LG Electronics, Inc. (LGE) was a technology innovator in electronics, information and communications businesses producing CDMA handsets, DVD players, optical storage devices, canister vacuum cleaners, air conditioners and micro ovens. LGE had more than 72,000 employees working in about 77 subsidiaries and marketing units across the world.

In January 2006, the company launched “Blue Ocean Management” campaign to be one among the top 3 electronics, information and telecommunications firms in the world by 2010. But LGE was primarily known for its low-cost appliances, and faced challenges related to company’s image, low profitability and stiff competition across the world. With the tough road ahead would LGE be able to achieve its target by 2010? Would it be able to make its competition irrelevant, especially Samsung, its home rival?

Pedagogical Objectives:

• To understand LG: a leading player in consumer electronics
• To understand consumer electronic market and competitor
• To understand value based technological innovation
• To understand geographic diversification and its strategies applied to gain market share
• To analyse the Blue Ocean strategy and its implementation at LGE.

Keywords : LG; LG Electronics; Blue Ocean Strategy; strategy; localisation; competitive strategy; market leader; new product development; Innovation; India; China; Middle East; Digital Electronics; CDMA and GSM handset; LCD TV; Plasma TV; Innovation Management Case Study; Mobile phones; Nokia; Samsung

Contents: 
Global Consumer Electronics
About LG
Blue Ocean Strategy
Focusing on high end products
Mobile Communications
LG Chocolate
Digital Display Company
Plasma TVs,LCD TVs,Digital Appliance and DigitalMedia
New markets and New Segments
LGE in Middle East and Africa