Business Case Studies, Vision, Mission and Goals Case Study, Samsung vs LG: Similar Goals, Dissimilar Strategies

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Vision, Mission and Goals Case Study

Case Title:

Samsung vs LG: Similar Goals, Dissimilar Strategies

Publication Year : 2005

Authors: Sireesha M, Sumit Kumar Chaudhuri

Industry: Engineering, Electrical and Electronics

Region:South Korea

Case Code: VMG0005

Teaching Note: Available

Structured Assignment: Available

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By the end of the fiscal year 2004, Samsung, the largest South Korean conglomerate, reported a profit of US$10 billion, while its global and domestic competitor LG (LG Electronics) could make US$1.5 billion. Since its inception, the leadership position of Samsung in dynamic random access memory technology and its strategic entry into the consumer electronics industry brought it on a par with other global leaders like Sony and Philips. The rise of the company as the 21st largest global brand in 2004 was due to its cutting edge technology, innovative designs and savvy marketing. LG, which was late to enter the industry, intends to emerge as a strong international brand in the footsteps of Samsung. However, LG is considered to be a laggard in the consumer electronics industry with its short product life-cycles and ever changing technologies.

Pedagogical Objectives:

  • To discuss how LG, as a market follower, is making efforts to become one of the leading players in the global consumer electronics industry.

Keywords : Samsung; LG (LG Electronics); Global branding; Vertical integration; Cultural marketing; Competitive Strategies Case Study; CDMA (Code Division Multiple Access) technology; GSM (Global System for mobile communication); Consumer electronics market; Chaebol; DRAM (Dynamic Random Access Memory); Digital technology

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