LG electronics is a part of LG corportation. LG electronics which is called GoldStar at that time was founded by KOO IN-HWOI who was founder of LG corporation in 1st Oct 1958 at KOREA.
At that time, radios were attracting interests as embodiments of civilization, bringing news of the world to their listeners. Mr. Koo thought, ‘we could make a radio by ourselves likes TOSHIBA, NATIONAL.’ So, he founded GoldStar. And finally, at 15th Nov 1959 they made the first Korean radio which is including more than 60% of domestic components. It was beginning of both LG electronics history and Korean electronic industry’s history. LG electronics started expanding their business to overseas by exporting ...view middle of the document...
International competition is fierce in this new millennium. Successful firms survive by creating high quality, competitively priced products and services. These goods must be well received both locally and globally.
So, I think First one of the environmental factor that affecting business of LG electronics is global consumer preferences. I mentioned before, electronic industry and it sector is the fastest growing sector. Consumer preferences also change fast. About 5 years ago. When consumer was buying cell phone, the most concerning is what is the function of the phone, how many they have. But, after smart phone released consumer is hardware such as concerning how much is cpu, is this phone’s internet is faster? Because, smart phone can add numerous function by downloading app.
And, Consumer tastes and preferences are converging, even though some national differences persist.
The success of such firms as levi’s, mcdonalds, sony, taco bell illustrates this trend. part of the reason for the development of world wide tastes and preferences is the presence of the mass media, exposure to goods from various countries, and marketing strategies of multinational firms that tend to offer standardized products worldwide, because doing so costs less than customizing goods to local conditions.
So, For survive at international business, we need to know about global consumer’s preferences and tastes. and have to find the way to satisfy global consumer’s preferences and tastes.
Second one of the environmental factor is globalized production.
To be cost efficient, firms are increasingly splitting up production around the world to take advantage of other countries ability to perform parts of the process better for less money.
The electronics and biomedical manufacturing industries lead Singapore's manufacturing sector, accounting for 31.5% and 19.4%, respectively, of Singapore's manufacturing output in 2010(http://www.state.gov/r/pa/ei/bgn/2798.htm)
Singapore is good at manufacturing electronics. But wage is too high. So, make only technology-intensive part at Singapore, and make rest part at other ASEAN countries which has low wage.
Singapore is ASEAN country. So that use less money for manufacturing.
Third is changing demographics. The population is getting older in the industrialized country.
Singapore demographic is also getting older. From 1990 to 2011 55~64 ages change from...