LG Corporation is Korean multinational corporation its headquarter is located in yeouido dong, yeongdeungpo seoul. Lg competes in three industries i.e. electronics, telecommunication and chemicals. Its operating subsidiaries are following, zenith LG display, LG electronics, LG chem and LG Plus. LG operates in over 81 countries. It is the merger of two Korean companies lucky and gold star and the brand name is the short form of the merged companies.
BCG Matrix of LG Corporation
BCG matrix was designed by a private consulting firm, known as Boston consulting Group. This matrix is designed for the companies or organization, which operate their business in multiple industries. BSG is a four quadrant graph which apprehend the company segments needs regarding of strategic planning. This matrix has four component namely, Stars, Dogs, Cash Cows and Question. Each segment fall in to the category of each component in terms of its market share and industrial growth rate. Market share of the company can be identified by, adding all the competitors’ annual revenue which are operating in the same industry and dividing it with the company segment revenue and then multiplying by 100. Industry sale growth rate is, aggregate annual growth of sales of all the company operating in the same business. In graphical representation of BCG matrix industrial growth rate is drawn on vertical axis market share is on horizontal axis. In this article we will be discussing detailed BCG matrix of LG Corporation which operate is multidimensional company. Following are the segments of LG Corporation, electronics, telecommunication and chemicals and each segment has it subsidiaries. LG electronics subsidiaries are as follow, LG electronics, LG display, LG Innotec, LG Siltrom and lusem. Following are the subsidiaries of LG Chemical, LG chem, LG household and care and LG hausys. Subsidiaries of LG telecommunication are, LG up plus, LG international corp, LG CNS and SERVEONE.
Question Mark
Question mark are those segments which are operating in the high sale growth rate industry and has low relative market share. LG telecommunication segment can be labeled as Question mark because the profit center has low market share and telecommunication industry is growing each year in terms of sale. LG Telecommunication should decide whether to invest more money to increase the market share or sale it. If more money is invested on the product development segment may turn in to star. LG is investing more money in this segment by offering bundle deals to its customer and by horizontal integration (purchasing the company of its competitors and merging it with segment subsidiary.
Cash Cows
Those segments come in to the fold of cash cows category, which are operating in the low sales growth industry but market share is very high. LG chemical segment falls into the category of cash cow. LG Corporation has been milking this segment for years despite the low industry growth rate, chemical segment is generating a huge revenue. LG chemical is one of the leading segment in chemical industry.
Stars
Such segments have high market share and operate in the high sale growth industry. LG electronics comes into the category of stars. Most of the revenue of LG Corporation is generated by Electronic segment. LG Electronic manufacture many products such as, televisions, home appliances, watches and mobile devices.
Dogs
Dogs are those segments which are operating in low sales growth industry and have low market share. None of LG segments fall in to this category.
References
LG Annual report. Retrieved from.
http://www.lgcorp.com/investors/annual.dev
LG’s innovative technologies, unique products, and cutting-edge designs are an investment in the future. Retrieved from.
http://www.lg.com/global/about-lg/our-brand#overview
comScore Reports October 2012 U.S. Mobile Subscriber Market Share. Retrieved from.
http://www.comscore.com/Insights/Press-Releases/2012/11/comScore-Reports-October-2012-US-Mobile-Subscriber-Market-Share?cs_edgescape_cc=PK
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