LG Electronics goodbye to cheap strategy-.docVIP

 PAGE \* MERGEFORMAT 4 LG Electronics goodbye to cheap strategy? LG into China ten years, do not sell products to five years time, but LG China 2000 sales of 20 billion U.S. dollars in 2001 to 30 billion U.S. dollars in 2002 to reach 4 billion U.S. dollars; LG product line, whole line: LG Display , optical storage, air conditioners, microwave ovens, CDMA mobile phones sold all among the top three, while the washing machine, refrigerator, color TV business has all entered the top ten, with Sony, Panasonic, Samsung in comparison, LG’s full line of products have entered China’s first echelon. China’s home appliance industry, exclaimed, this is a wolf in Korea, but China’s home appliance industry’s largest competitor. What is the leading Chinese home appliance industry, LG is considered the most ‘terrible’ enemy? The answer is simple: to master the mental resources to consumers, close to the Chinese consumers, in both low-end quick access to the Chinese market. However, ‘have changed and times have changed, political reform should carry on’, this year, LG announced that by 2005, LG will enter in the third phase of China’s development: in the high-end market, won the mainstream, meaning that LG Electronics has long been taken by China ‘strategic deficit’ in the end of the low price strategy. LG Electronics to China late, because of their long-term development considerations, management has adopted a ‘strategic deficit’ strategy of low-cost operations in the Chinese market in an attempt to quickly cut into the Chinese market and quickly placeholder. LG’s low-cost and low prices, household electrical appliance enterprises in China has created an enormous threat to power: LG color TV sets, washing machines, microwave ovens and air conditioners prices and domestic brands is almost even more at lower prices. amp;quot;Strategic loss’ strategy for LG in China anytime soon, ‘surpass’. What has supported LG products to achieve low-cost? 1, economies of scale Shiran. Fro