Case
Teaching Notes
Supplementary Resources
Abstract
LG was market leader in nearly all its product lines and segments in consumer electronics in India in 2007. LGIL had appointed a new MD who had to develop strategies to enable the company to sustain its market position. This case details the distribution, product development and service focus of LG, together with changing consumer behavior up to the present time with projections for strategy into the future.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Table I: Ownership of Household Durables by Type (Actual Growth): 1995–2007/2007–2015 Percentage Points
1995–2007 | 2007–2015 | |
Air conditioner | 1.21 | 1.88 |
Bicycle | 7.50 | 3.67 |
Black and white TV set | −7.86 | −9.87 |
Cable TV | 22.91 | 6.06 |
Camera | 3.03 | 1.99 |
Cassette/radio player | −6.61 | −11.65 |
CD player | 0.83 | −0.34 |
DVD player/recorder | 1.44 | 3.26 |
Colour TV set | 45.68 | 28.59 |
Range cooker | 12.60 | 8.00 |
Dishwasher | 0.70 | 2.80 |
Freezer | 8.45 | 7.84 |
Hi-fi stereo | 8.67 | 8.32 |
Microwave oven | 11.22 | 7.77 |
Mobile telephone | 13.12 | 19.56 |
Motorcycle | 2.26 | 1.44 |
Passenger car | 4.00 | 5.13 |
Personal computer | 12.68 | 16.75 |
Internet-enabled computer | 2.72 | 10.36 |
Piano | 0.51 | 0.36 |
Refrigerator | 5.93 | 5.95 |
Satellite TV system | 2.92 | 1.51 |
Sewing machine | 0.07 | −0.41 |
Shower | 8.19 | 5.45 |
Telephone | 9.76 | 6.39 |
Tumble dryer | 0.61 | 0.30 |
Vacuum cleaner | 21.98 | 10.40 |
Video camera | 0.04 | 0.02 |
Video game console | 0.65 | 0.39 |
Videotape recorder | 0.95 | −0.15 |
Washing machine | 14.62 | 11.13 |
Source: National statistics, Euromonitor International
Table II: Household by Type (% Analysis and % Growth) 1995/2007/2015/1995–2007/2007–2015 % Analysis/% Growth
1995 | 2007 | 2015 | 1995–2007 | 2007–2015 | |
Single person | 2.66 | 4.59 | 6.42 | 121.79 | 57.79 |
Couple without children | 7.48 | 10.89 | 12.39 | 86.83 | 28.51 |
Couple with children | 56.15 | 51.98 | 49.45 | 18.81 | 7.40 |
Single-parent family | 9.34 | 8.79 | 8.40 | 20.83 | 7.88 |
Other | 24.37 | 23.74 | 23.33 | 25.01 | 10.97 |
HOUSEHOLDS | 100.00 | 100.00 | 100.00 | 28.33 | 12.90 |
Source: Euromonitor International from trade sources and national statistics
Note: Figures stated as zero refer to a negligible percentage of total households
Table III: Consumer Expenditures by Commodity Type: 1995/2000/2005/2007/2010/2015 Rs billions
1995 | 2000 | 2005 | 2007 | 2010 | 2015 | |
Durable goods | 377.6 | 498.5 | 685.3 | 769.0 | 919.9 | 1,283.9 |
Semi-durable goods | 1,073.4 | 1,483.7 | 1,699.5 | 1,898.3 | 2,219.1 | 3,023.4 |
Non-durable goods | 8,514.6 | 9,977.1 | 11,392.7 | 12,602.5 | 14,484.3 | 19,679.1 |
Services | 4,573.9 | 6,162.7 | 8,945.9 | 10,018.2 | 11,865.5 | 16,026.1 |
TOTAL | 14,539.5 | 18,122.1 | 22,723.5 | 25,288.0 | 29,488.8 | 40,012.4 |
Source: National statistical offices, OECD, Eurostat, Euromonitor International
Note: Constant value at 2007 prices
Table IV: Forecast Sales of Consumer Electronics by Category: % Volume Growth
Forecast Sales of Consumer Electronics by Category: % Volume Growth 2009–2014 | |
% Volume growth | 2009/14 TOTAL |
Computer and Peripherals (Computer & peripherals) | 161.6 |
In-Home Consumer Electronics (Home audio and cinema, Televisions and projectors, Video players) | 91.1 |
In-Car Entertainment (In-car media players, In-car navigation, In-car speakers, Other in-car entertainment) | 123.1 |
Portable Consumer Electronics (Cameras, Camcorders, Portable media players, Mobile phones) | 71.1 |
Consumer Electronics | 87.7 |
Table V: Forecast Sales of Consumer Electronics by Category: % Constant Value Growth
Forecast Sales of Consumer Electronics by Category: % Value Growth 2009–2014 | |
% Constant Value Growth | 2009/14 TOTAL |
Computer and Peripherals (Computer & peripherals) | 115.9 |
In-Home Consumer Electronics (Home audio and cinema, Televisions and projectors, Video players) | 137.7 |
In-Car Entertainment (In-car media players, In-car navigation, In-car speakers, Other in-car entertainment) | 48.0 |
Portable Consumer Electronics (Cameras, Camcorders, Portable media players, Mobile phones) | 42.0 |
Consumer Electronics | 77.0 |
Table VI: Flat CTV Market Share
Market Share of Different Players For Flat Colour TV (In %) | |||||||
Year | LG | Samsung | Videocon Brands* | MIRC** | Philips | Sony | Others |
2009–10 | 31.7 | 25.2 | 19 | 11.1 | 4.1 | 0.5 | 8.4 |
Note: *Videocon Brands includes Videocon, Sansui, Akai, Hyundai, Kenstar & Toshiba
**MICR includes Onida & Igo brands
Source: CRISIL Research Industry
Table VII: High-End TV Market Share
Market Share of Different Players For High-End TV (In %) | |||||||
Year | Samsung | LG | Sony | Videocon Brands* | Philips | MIRC** | Others |
2009–10 | 33.5 | 27.2 | 21.7 | 7.4 | 0.9 | 2 | 7.3 |
Note: *Videocon Brands includes Videocon, Sansui, Akai, Hyundai, Kenstar & Toshiba
**MICR includes Onida & Igo brands
Source: CRISIL Research Industry
Table VIII: Air Conditioners
Market Share of Different Players For Room Air Conditioners (In %) | |||||||
Year | LG | Voltas | Samsung | Videocon | MIRC | Whirlpool | Others |
2008–09 | 27 | 17 | 15 | 7 | 6 | 4 | 24 |
Note: *Videocon Brands includes Videocon, Sansui, Akai, Hyundai, Kenstar & Toshiba
**MICR includes Onida & Igo brands
Source: CRISIL Research Industry
Table IX: Washing Machines
Market Share of Different Players For Washing Machines (In %) | |||||||
Year | LG | Samsung | IFB | Videocon* | Godrej | Whirlpool | Others |
2009–10 | 26.3 | 21.3 | 5.8 | 15.2 | 7 | 16.2 | 8.2 |
Note: *Videocon Brands includes Videocon, Sansui, Akai, Hyundai, Kenstar & Toshiba
**MICR includes Onida & Igo brands
Source: CRISIL Research Industry
Table X: Refrigerators
Market Share of Different Players For Refrigerators (In %) | ||||||
Year | LG | Samsung | Videocon* | Godrej | Whirlpool | Others |
2009–10 | 26.4 | 19.2 | 15.4 | 17.1 | 19.3 | 2.6 |
Note: *Videocon Brands includes Videocon, Sansui, Akai, Hyundai, Kenstar & Toshiba
Source: CRISIL Research Industry
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved