After all, India ranks among LG’s favourite markets... doesn’t it?

ZEE BUSINESS BEST B SCHOOL SURVEY

The outlook for 2009 is not very good, with slowing consumer demand across key categories like flat screen TVs, mobile phones, et al. LG’s mobile communications division, digital appliances and digital displays division have all come under margin pressure and face the prospect of cutting edge price wars, that would remind them of their red ocean days. Of course, global recession has been a big shark in the condescending blue ocean that LG was traversing.

Fortunately, LG is one giant that is not (at least till date) contemplating massive job cuts. But critically, experts now comment that LG’s blue ocean approach was and is simply an escape route to exit troubled businesses and geographies under the guise of a grandiose strategy. Foxed we were, and to understand how LG’s strategy is faring up closer home, we undertook a visit to the LG’s headquarters in India. After all, India ranks among LG’s favourite markets... doesn’t it?

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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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