Competitive Strategies Case Study

LGEIL in the Indian Handset Market

OR

Abstract:
In 2003-04, the Indian mobile handset industry with a growth of 568% was the second largest market after China. There were around 20 handset companies in the GSM segment and around 10 players in the CDMA segment. LG, a Korean player entered the Indian market with the CDMA segment in collaboration with the service operators, Reliance Infocomm and Tata Teleservices. LG Electronics India Ltd.,(LGEIL) captured 66% market share in the CDMA segment compared to Samsung who had a market share of only 15.2%. Having tasted the initial success in the CDMA market, LGEIL entered the GSM market. The case gives in-depth information on the telecom environment in India, and the growth of the handset market in India. The case discusses on the various initiatives taken by LG in the GSM market.

Pedagogical Objectives:

• The nature and characteristics of the Indian mobile handset market
• LG’s strategy to retain its position in the CDMA market
• Having been successful in the CDMA market, would LG be able to compete effectively in the GSM market

Keywords : LG; Indian Telecom; LG Electronics India Ltd; GSM Segment; CDMA Segment; Nokia; Samsung; Indian mobile Handset Industry; Corporate Strategies Case Study; Benq Reliance Infocomm; Tata Teleservices; Chinese Handset Market; Global Player in India