- April 23, 2014
- Posted by: essay
- Category: Term paper writing
LG is one of the leading companies in the high tech industry. The company has reached tremendous success in emerging markets but, now, LG has to expand its market and enter established markets of the US and Western Europe, where Japanese, American and European companies play the dominant part. Hence, LG should use the full potential of its experience of developing business in emerging markets and develop a new strategy for established markets.
To enter established markets successfully, LG should focus on innovations which can help the company to make a breakthrough in the market. The company can benefit from the introduction of innovation because, in such a way, LG will become a pace-setter in the industry. As a result, the major rivals of the company in established markets of the US and Western Europe will have to catch up and introduce similar products, while LG will attract new customers, who are interested in new and better products. Today, innovations are the key to the marketing success of LG in established markets, while other strategies can hardly allow the company to outpace its major rivals from Japan, the US and Europe.
In fact, lessons learned in the BRIC countries may be helpful but LG still has to develop a brand new strategy for developed markets. In the BRIC countries, LG was a leader and the company could raise entering barriers and conduct aggressive marketing polices. In stark contrast, LG is a new entrant in well-developed countries and LG cannot take the leading position immediately. In contrast, the company has to struggle with its major rivals, who have their market share in established markets. Nevertheless, policies and strategies that allowed LG to maintain the leadership in emerging markets could help the company to enhance its position in established markets.
LG grew steadily and the company had reached a considerable progress till the point when the company needed to expand its markets further, beyond emerging markets. As the company took a strong position in emerging markets, LG has started to look for options for the further business expansion. In such a situation, entering established markets of the US, Western Europe and other well-developed countries, became a reasonable decision and a part of the global strategic position of LG as the global company operating internationally. Moreover, the company strives to take the lead in every market, where it enters.
As LG is entering the US market, the company has to take into consideration the residual uncertainty which affects the consumer behavior and, therefore, the business development of the company. In actuality, the US is currently experiencing the level 2 of residual uncertainty because the country faces considerable difficulties with the accurate forecasting of the further economic development of the country. The US economy stumbles and its further development is uncertain. As a result, specialists and managers of companies operating in the US have difficulties with forecasting the further development of the US economy. In addition, the US economy is vulnerable to the negative effects of changes in international markets. Therefore, the future of the US economy is uncertain that evokes uncertainty in the US citizens, statesmen, and managers of companies operating in the US.
In actuality, the LG Posture is shaping because the company attempts to take the lead in the industry through introducing new products that are different or consistently better than products of its major rivals. LG focuses on research and development to establish its difference and stress its innovativeness to attract more customers and to enhance its position in the market. LG drives the industry to the new direction and attempts to set pace, while the company attempts to make its rivals to follow its lead in the industry.
Thus, LG enhances its marketing position and attempts to enter established markets and to take the lead in international markets.