As a student taking Economics, Accounting, Marketing or Business Management you will be required to conduct five forces analysis on different companies. Our expert economics essay writing service<\/strong><\/a> has a repository of different analysis done. Below are some of the most popular five forces analysis done.<\/p>\n\n\n\n Porters five forces analysis on Uber<\/strong><\/a><\/p>\n\n\n\n Porters five forces analysis on AirBnB<\/strong><\/a><\/p>\n\n\n\n Let\u2019s dive right in and look at LG a little more closely. <\/p>\n\n\n\n Before we launch this LG Group Porter Five Forces analysis<\/strong>, let\u2019s learn a bit of the company\u2019s history. We\u2019ll also briefly talk about LG\u2019s business and products. <\/p>\n\n\n\n The LG story starts way back to 1947.That\u2019s when the LG Corp\nset up shop as Lak Hui Chemical Industrial Corp in South Korea.Later on, Lak\nHui entered the plastics industry. Afterward, the company expanded into the\nelectronics space.LG Chem is the modern-day Lak Hui. <\/p>\n\n\n\n In 1958, the company founded GoldStar Co. Ltd which later\nbecame LG electronics. Mr. Koo Bon-Moo,\nthe company\u2019s founder, changed GoldStar\u2019s name to LG in 1995. The company uses\na particularly catchy tagline\u2014 Life\u2019s Good. It\u2019s easy to think LG is\nabbreviation for Life\u2019s Good. <\/p>\n\n\n\n LG comprises four major business units namely:<\/p>\n\n\n\n The company offers a diversity of products including TV sets, digital cameras, washing machines and wearable devices. It also produces smartphones, storage devices, refrigerators, tablets, smart appliances, and computer monitor. <\/p>\n\n\n\n LG is best known for its LCD TVs. The company has remained the second-largest LCD TV manufacturer since 2008. LG sells way more than just consumer electronics. However, this LG Group Porter Five Forces analysis<\/strong> will focus on LG\u2019s electronics business. <\/p>\n\n\n\n Before we start performing our LG Group Porter Five Forces analysis, let\u2019s first grasp Porter Five Forces analysis. In 1979, Michael Porter<\/a> wrote an article that was chock-full of great insights. Unsurprisingly, the article got published in the Harvard Business Review. <\/p>\n\n\n\n Then, the article attracted truckloads of attention from the\nbusiness world. Today\u2014 40 years later \u2014 Porter\u2019s work continues to reverberate\nthroughout academia and business. His ideas are as relevant and valuable as\nthey were when he first shared them with the world. <\/p>\n\n\n\n Porter\u2019s Five Forces<\/strong> amount to a framework that helps businesses understand the competitive forces that define a given industry. Porter believed that it was these competitive forces that decided who got how much of an industry\u2019s total value. <\/p>\n\n\n\n Today\u2019s world is complex. And things aren’t getting any easier. New businesses are getting established at an unprecedented rate. For entrepreneurs, cutthroat competition has now become a fact of life. <\/p>\n\n\n\n A thorough Five Forces analysis helps investors assess a\ncompany\u2019s attractiveness. It also enables them to gauge how emerging trends may\naffect competition in a particular industry. <\/p>\n\n\n\n Also, the analysis helps develop a clear understanding of which industries a business should consider entering. In addition, the analysis empowers decision-makers to devise better strategies for positioning a company for success. <\/p>\n\n\n\n Let\u2019s now examine how each of Porter\u2019s Five Forces work in LG. But before that, let\u2019s quickly list down Porter\u2019s Five Forces. <\/p>\n\n\n\n This LG Group Porter Five Forces Analysis<\/strong> will examine how each forceis working for or against LG. But before we embark on the analysis, let\u2019s take a peek at the consumer electronics market. <\/p>\n\n\n\n How big is the market? How is it performing? Is it expanding?\nWhat does the future look like? <\/p>\n\n\n\n At this point in this LG Group Porter Five Forces analysis,\nwe need to focus on industry competition. How big is the consumer electronics\nmarket? How low or high are the barriers to entry? <\/p>\n\n\n\n According to Zion Market Research, the value of the global\nconsumer electronics market was $1.172 trillion in 2017. It\u2019s a vast market,\nevidently. <\/p>\n\n\n\n The consumer electronics market in 2018 grew by 6 percent<\/strong><\/a> to 138 billion Euros or about $123 billion. TV equipment sales dominated consumer electronics market (75%). <\/p>\n\n\n\n LG happens to be the second largest manufacturer of LCD TVs\nworldwide. Growth from Knowledge predicts that the market will expand 4 percent\nin 2019. Of the revenue expected, LG will grab about 45% going by past numbers.\n<\/p>\n\n\n\n The industry is growing, but the growth rate isn\u2019t encouraging.\nConsumers nowadays seem eager to own fewer, sleeker devices. Actually, global\nsmartphone sales have continued to slump since 2016. <\/p>\n\n\n\n One would think consumers should be willing to pay higher\nprices for the added value they keep demanding. But that\u2019s not happening.\nInstead, consumers want and more and more value at lower and lower prices. <\/p>\n\n\n\n The consumer electronics space is doubtless a high\ncompetition arena. And with new companies entering the industry continually,\ncompetition can only worsen. <\/p>\n\n\n\n Are you ready for LG Group Porter Five Forces analysis now? <\/p>\n\n\n\n Let\u2019s roll. <\/p>\n\n\n\n If a company\u2019s competitors are stronger than it, suppliers\noften start wooing them (competitors) for business. <\/p>\n\n\n\n In a low-competition industry<\/strong>, companies wield much power. They can usually command higher prices for their products. And they can easily design deals that work in their favor. <\/p>\n\n\n\n In this section of the LG Group Porter Five Forces analysis,\nwe\u2019ll identify the company\u2019s main competitors. We\u2019ll also cast a glance at some\nof the products facing the threat of substation in the market. <\/p>\n\n\n\n People can use personal computers to watch their favorite\nprograms instead of watching LG\u2019s LCD TVs. Pretty much anyone with internet\naccess can do that. <\/p>\n\n\n\n But how many people really watch TV via their laptop or\ndesktop? Very few. Preferences may shift in the future. But as things stand, LG\nTVs are here to stay. <\/p>\n\n\n\n How many people today hesitate to buy expensive digital cameras\nbecause they can use their smartphones? It\u2019s lots of people all over the world.\n<\/p>\n\n\n\n Smartphones are increasingly substituting for digital\ncameras. The high-quality in-built cameras that most affordable smartphones\nfeature are the culprit. Luckily, LG\u2019s revenues don\u2019t lean heavily on camera\nsales. But there\u2019s clear threat right there. <\/p>\n\n\n\n Consumers continue to demand LG\u2019s TVs, smartphones and other\nproducts. Demand may slow down the road, as it often does. But it\u2019s unlikely\nLG\u2019s main products will get eliminated completely by substitutes. <\/p>\n\n\n\n One may safely conclude that LG doesn\u2019t face a high threat\nof substitutes. The company should probably carry on riding the smart devices\nwave for the foreseeable future. <\/p>\n\n\n\n LG manufactures storage hardware drives. But what are the\nthreats here? Google Drive and Dropbox are inventions<\/em>\nthat should worry LG. These two are emerging as worthy substitutes for storage\nhardware drives.<\/p>\n\n\n\n However, it\u2019s likely that storage devices will get pushed\nout of the market gradually. There\u2019s no Google Drive or Dropbox revolution to\ntalk of currently. LG probably has sufficient time to think up new products or\nservices to counter the onslaught.<\/p>\n\n\n\n What are the barriers to entry like into the consumer\nelectronics market? Admittedly, a new business would require a huge capital\noutlay to establish itself in the business. But a little research reveals that\nthe entry barriers are generally low. <\/p>\n\n\n\n It\u2019s relatively easy for a little-known company to set up\nshop today, market hard, and shootto global recognition tomorrow. <\/p>\n\n\n\n The cost of components is plummeting. Manufacturing is becoming\nless expensive. Throw crowdfunding<\/a> into\nthe equation. And it\u2019s easy to see why competition in the consumer electronics\nmarket stays stiff throughout. <\/p>\n\n\n\n In this LG Group Porter Five Forces analysis, it\u2019s important\nto mention that LG enjoys certain advantages over new entrants. <\/p>\n\n\n\n First, its products are well-known all over the world, especially\nin South Korea, Europe, and North America. Generally, it\u2019s easier to push a\ngood popular product than a new one which has yet to prove itself. <\/p>\n\n\n\n Second, LG has established systems and processes and is\nfamiliar with the challenges facedin the electronics market. Besides, the company\nis deep-pocketed. It can hire the best engineers, technicians, and innovators\non the planet. However, history is replete with accounts of underdogs who\neventually overpowered monstrous opponents. <\/p>\n\n\n\n Third, owing to its size, LG can always leverage economies\nof scale and suppress its production costs. That can allow the company to push\ndown prices, giving LG tremendous power. <\/p>\n\n\n\n Best known for its top-notch electronics, LG battles legions\nof competitors. In our LG Group Porter Five Forces analysis, we found that LG\ncontends with 19 major companies. <\/p>\n\n\n\n Some of LG\u2019s worthiest competitors includeSamsung,\nPanasonic, Sony, Whirlpool, Philips, and Electrolux. There\u2019s also Toshiba,\nHuawei, Dell, Apple, Vivo, Oppo, Xiaomi, Haier, Midea & Carrier Midea, and\nCanon. And don\u2019t forget Lenovo, HP, and Sony Vaio. <\/p>\n\n\n\n Most of these competitors are in the same business as LG.\nSome like Apple and Dell focus on PCs. Others like Sony and Samsung are huge\nplayers in the TV and smartphone markets. And Canon competes with LG in the\ncameras space. <\/p>\n\n\n\n These companies are well-known global brands. Some of them\nsuch as Apple, Sony, and Samsung sell products that enjoy widespread\nacceptance. <\/p>\n\n\n\n But it\u2019s not just thehard-charging<\/em>\ncompetitors that worry LG. Legions of small consumer electronics\nmanufacturersare sprouting all over. These two factors are a threat to LG\u2019s\npower. The only way LG can stay ahead of the pack is to hire the best\ninnovators it can afford. But the fact that LG\u2019s competitors sell similar\nproducts to it reduces LG\u2019s power enormously. <\/p>\n\n\n\n No business ever wants to be at the mercy of large,\npower-wielding suppliers. It\u2019s best when there are many suppliers of the same\nmaterials in the market.<\/p>\n\n\n\n If a supplier dominates the market, they can easily\nnegotiate better prices with businesses such as LG. And if they supply a unique\ninput, they can negotiate deals that can win them serious economic advantages. <\/p>\n\n\n\n So who supplies to LG?<\/p>\n\n\n\n LG works with bothdirect suppliers and indirect suppliers. Direct suppliers provide components and raw materials. In contrast, indirect suppliers provide mostly services including IT and advertisement. This LG Group Porter Five Forces analysis<\/strong> will focus on LG\u2019s direct suppliers, though. <\/p>\n\n\n\n LG workedwith more than 2,600 direct suppliers in 2015. And\nthe company keeps attracting new partners. <\/p>\n\n\n\n The majority of these suppliers (about 75%) are based in\nAsia while the rest come from other regions. About 1,000 of all LG\u2019s suppliers are\nin South Korea. LG purchases roughly 32 percent of the components it needs in\nSouth Korea.<\/p>\n\n\n\n Chinese suppliers provide about 25 percent of mechanical\nparts while Europe supplies approximately 7 percent of raw materials. The\nAmericas ship in about 22 percent of electronic parts. The company obtains\nabout 15 percent of semiconductors from Asia. <\/p>\n\n\n\n Thousands of eligible companies from around the world keep pestering\nLG for approval to become its suppliers. LG is a humongous buyer. It\u2019s\nrelatively easy for the company to swap to a new supplier in case of problems\nwith an existing supplier. <\/p>\n\n\n\n Most suppliers would love to win this big account. While LG\nneeds these suppliers, most of them need the company more. And that does erode their power considerably.\nIt\u2019s not hard for LG to approach its suppliers and say, \u201cLook, we can get a\nbetter deal elsewhere.\u201d <\/p>\n\n\n\n Consumers are a fascinating lot. <\/p>\n\n\n\n One time they\u2019re demanding a product with certain amazing\nfeatures. Another time they don\u2019t want the product at all. They want something\nbetter. And at lower prices. That inescapable reality incessantly piles\npressure on manufacturers such as LG. <\/p>\n\n\n\n LG can\u2019t behave like Henry Ford once did. Henry Fordonce\nsaid, \u201cYou can have any color you want, as long as it is black.\u201d Ford gave\nconsumers what he thought they needed rather than what they\u2019d have said they\nneeded. <\/p>\n\n\n\n But that was many years ago in a country where most people\nrelied on horses for transportation. A lot has changed since then. In the 21st<\/sup>\ncentury, holding such commercial beliefs<\/em>is\npretty much self-sabotage. There are many companies doing what LG does. And if\nLG won\u2019t do a great job, consumers have numerous options. <\/p>\n\n\n\n LG sells lots of high-end TV sets and smartphones. Frankly,\nthough, LG\u2019s smartphones aren\u2019t the most popular on the planet. But as\nmentioned elsewhere in this LG Group Porter Five Forces, LCD TVs are seeing\nhigh and growing demand. <\/p>\n\n\n\n About 50% of the TV setsLG sells are high-end and their\ndisplay screen is at least 50 inches wide. It does seem like high-income and\nmiddle-income consumers want bigger, better things. But will that preference\nlast? Only consumers can decide that. They have enormous power. And they\u2019ll\ncontinue to wield it over LG. <\/p>\n\n\n\n This LG Group Porter Five Forces analysis<\/strong> concludes that LG is an attractive investment in many ways.<\/p>\n\n\n\n Lots of large suppliers from across the world would love to have\nLG as their client. And that gives LG serious advantages. <\/p>\n\n\n\n New entrants have a chance in this business. But LG can\nleverage its systems, processes, people, and brand recognition to protect\nitself against competition. <\/p>\n\n\n\n Competitive rivalry in the consumer electronics space is alive and well. LG battles a bunch of huge competitors including Samsung, Sony, Philips, Apple, and many others. Also, there\u2019s a lot of competition in the industry. And growth numbers don\u2019t look that rosy. Fortunately, LG<\/strong> controls a sizable portion of the smart TV market. <\/p>\n\n\n\n But consumers of electronic goods wield considerable power over LG. If the company won\u2019t satisfy their ever-changing needs, they\u2019ll look elsewhere. Given LG\u2019s ability to continually innovate, LG is likely to remain a dominant player in the market. <\/p>\n\n\n\n Are you looking for expert writers to write Porters Five Forces Analysis on Coca Cola, McDonald or any other corporation. Talk to our professional SWOT analysis assignment writers<\/strong><\/a> today for assistance.<\/p>\n","protected":false},"excerpt":{"rendered":" LG Group Porter Five Forces Analysis What will I learn in this LG Group Porter Five Forces analysis? You\u2019ll gain a deeper understanding of the various forces that call the shots in the industries LG operates in. We\u2019ll use Michael Porter\u2019s Five Forces analysis to dissect LG. You\u2019ll get a glimpse into the company\u2019s competitiveness … Continue reading LG Group Porter Five Forces Analysis<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[259,261,262,258,263,260],"class_list":["post-776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-homework","tag-buy-paper-on-five-forces-analysis-on-lg","tag-electronics-industry-analysis-sample-essay","tag-free-porters-five-forces-analysis-on-lg","tag-lg-group-porter-five-forces-analysis","tag-professional-swot-analysis-assignment-writers","tag-swot-analysis-assignment-help"],"_links":{"self":[{"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/posts\/776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/comments?post=776"}],"version-history":[{"count":13,"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/posts\/776\/revisions"}],"predecessor-version":[{"id":869,"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/posts\/776\/revisions\/869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/media\/779"}],"wp:attachment":[{"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/media?parent=776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/categories?post=776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/expertwritinghelp.com\/blog\/wp-json\/wp\/v2\/tags?post=776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What Does LG Do? <\/h2>\n\n\n\n
![\"LG](\"https:\/\/expertwritinghelp.com\/blog\/wp-content\/uploads\/2019\/05\/smartphone-2198559__340.jpg\")
<\/figure><\/div>\n\n\n\n4 Major Business Units<\/h3>\n\n\n\n
What\u2019s Porter Five Forces Analysis? <\/h2>\n\n\n\n
Application of Porter\u2019s Five Forces Analysis<\/h2>\n\n\n\n
Porter\u2019s Five Forces Analysis of LG<\/h2>\n\n\n\n
A Peek at the Consumer Electronics Market: Industry Analysis<\/h2>\n\n\n\n
The Industry is Expanding, but it\u2019s Quite Competitive<\/h2>\n\n\n\n
![\"\"](\"https:\/\/expertwritinghelp.com\/blog\/wp-content\/uploads\/2019\/05\/LG-five-forces.jpg\")
<\/figure><\/div>\n\n\n\n
LG Group Porter Five Forces Analysis: Threat of Substitutes<\/h2>\n\n\n\nWill Personal Computers Replace TV Sets?<\/h3>\n\n\n\n
But Smartphones are a Huge Threat to Digital Cameras<\/h3>\n\n\n\n
What about Storage Devices?<\/h3>\n\n\n\n
Threat of New Entrants: Low Barriers to Entry Compounded by Crowdfunding<\/h2>\n\n\n\n
It\u2019s Tough for New Entrants to Wrestle LG, Though<\/h3>\n\n\n\n
Competitive Rivalry: LG Battles Many\u201cSerious\u201d Competitors<\/h2>\n\n\n\n
Competitors Do the Same Business as LG, Reducing its Power<\/h3>\n\n\n\n
LG Group Porter Five Forces Analysis: Power of Suppliers<\/h2>\n\n\n\nLG\u2019s Direct Suppliers<\/h3>\n\n\n\n
Thousands of Suppliers Continually Seek to Clinch LG\u2019s Business<\/h3>\n\n\n\n
How Much Power Do Buyers of LG\u2019s Products Wield?<\/h2>\n\n\n\n
LG isn\u2019t a Monopoly, Unfortunately<\/h3>\n\n\n\n
LG\u2019s Smartphones and TV Sets<\/h3>\n\n\n\n
LG Group Porter Five Forces Analysis: Final Thoughts<\/h2>\n\n\n\n