кейси для індивідуальної роботи 2014 н.р. / LG CORP IN CONSUMER ELECTRONICS

% volume CAGR 2010-2015

15

10

5

0

-5

-10

-15

0

Sales volumes

OLED TVs: Sales Volumes 2010

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

„000 units

OLED TVs: Volume Growth Prospects 2011-2015

800

700

600

500

400

300

200

100

0

Despite low sales of OLED TVs, 2012 may be a critical turning point for both OLED TVs and LG (and Samsung). Taiwanese and Chinese manufacturers are well entrenched in the production of LCD panels, but only LG and Samsung have invested significantly in OLED technology. This presents LG and Samsung with a huge technological advantage over their rivals.

The Korean giants will have to continue their relentless and single-minded dedication to ensure that the price gap between OLED and LCD panels continues to narrow. As of now, the two companies are the only ones that can produce large screensized OLED TVs. Sony was the first to commercially launch an OLED TV, but it struggled to justify the US$2,000 price tag and showcase the merits of the OLED display on an 11” screen. By

2015, both LG and Samsung may look back to 2012 as the watershed year for OLED TVs, marking a critical turning point in their continued success within televisions.

The problem for LG will be justifying the ongoing development costs if huge sales fail to materialise.

Digital TVs: Growth Prospects 2011-2015

 Euromonitor International forecasts only slow growth for OLED TVs with sales not reaching a million units by 2015 and they could suffer a similar fate to 3D-enabled TVs – widely proclaimed in 2011, but with their sales only accounting for 10% of total digital TV sales in the 46 countries researched by Euromonitor International in 2011.

Tablets will be the main volume driver in portable computers over the forecast period. But volume growth will likely be accompanied by rapid price erosion especially as demand growth shifts to emerging markets in 2013. With a large array of lowcost brands entering the tablets market, it is crucial that LG finds a way to capture demand for more advanced and higher-priced tablets. This means that developed markets will be a focus in the short term for the company. The early adoption phase of tablets has largely passed, with demand satisfied largely by Apple Inc. The next growth phase will likely follow the release of the Microsoft 8 operating system in late 2012. This is a significant opportunity for LG to capitalise on its vast manufacturing base to produce OLED touchscreen tablets based on the OS in 2013. Along with Samsung Corp, LG Corp is uniquely positioned in terms of production capabilities to produce these devices as early as 2013.

In developing markets demand for low-cost, durable, and reliable internet-enabled tablets will be driven by an expanding internet population. However, LG is at a competitive disadvantage compared to low-cost Taiwanese and Chinese brands in these markets.

Portable Computers: Growth Prospects

by Category 2011-2015

The biggest changes in the competitive environment in mobile phones on a global scale came with the emergence of smartphones. Incumbent market leaders Nokia Group and Motorola Inc, were too slow to innovate and largely failed to capitalise on growing consumer interest in increasingly powerful mobile phones allowing Apple Inc and Research in Motion Ltd to capture the market as smartphones became mainstream.

LG Corp and Samsung Corp have been quicker to innovate than Motorola Inc etc. which has helped the former two avoid significant share decline. The two manufacturers built on their established selection of feature phones to offer competitive smartphone line-ups.

The difficulty for LG has been to differentiate itself in an increasingly congested market and the company chose a strategy of product proliferation having a number of smartphone varieties currently listed on its website. At the same time, in order to attempt such differentiation, in summer 2011, LG launched the world‟s first 3D smartphone, the Optimus 3D.

Like other phone producers, LG has further attempted differentiation by branding/licensing via a designer. Branded as the world‟s most stylish smartphone, the PRADA KE850 attempts to raise LG‟s brand equity, incorporating style, good specifications

(e.g. an 8 megapixel camera), all housed within an ultra thin body.

LG Optimus 3D

Source: LG website

 A host of other designer phones have been released including a Samsung Armani phone and a Motorola Dolce & Gabbana phone and the question for LG remains – what can it do next to differentiate its brand.

BRAND STRATEGY

LG at the cutting edge of TV production

LG has looked to kick-start the lacklustre sales of its 3Denabled TVs with an aggressive marketing campaign in late 2011. LG incurred the wrath of its competitors, Samsung Corp and Sony Corp by releasing the company‟s own blind test results claiming that “four out of five people chose LG over Sony and Samsung for overall

3D experience”. The campaign pushed LG into a genuine contender in 3D-enabled TVs in the eyes of the consumers

The company has also pioneered (at the same time as Samsung) large screen OLED TVs, and its effort was rewarded with the Best of Show and Best TV in the Consumer Electronics Show 2012.

While LG‟s pioneering approach in OLED TVs underlines its drive to gain first-mover advantage, turning OLED TVs into a worthwhile revenue generating product remains a challenge due to the expected high prices as compared to LCD or Plasma TVs. Euromonitor International predicts that OLED TVs will account for only a tiny fraction of digital TV sales by 2015.

However, LG‟s other products can still ride on the tailcoat of its OLED TVs, and history showed that having a hero product does have a positive impact on other products.

Digital TVs: Volume Breakdown

Prospects by Category 2015

LCD

Plasma

OLED

Other Digital

Source: LG website