May 13, 2009

LG Mobile Phone

LG Mobile Phone Strategy for Bigger Global Market Share

These days, the world is in the middle of difficult time. The financial crisis has made many companies collapsed and all over the world suffered from economic slowing rate. Many people lost their job or receive fewer incomes. As a result, consumer spending is significantly decreasing. Cellular phones industry, including LG Mobile Phone is one of the aggrieve industries in the past decades. The rapid development of mobile technology contributed to significant increasing of global cellular market. Cellular phone now turns in to a multifunctional device. New technology of mobile data transfer allows people to use cellular phone just like their computer and help their daily work.

However, cellular phone industries could not escape from the global crisis. With the slow economic, it is predicted that in this year the global cellular market growth would falling to 9% from 11% last year, according to Gartner. This is a new challenge for cellular phone manufacturers including LG Mobile Phone and the challenge become bigger with the phenomena of iPhone and RIM’s Blackberry that gain popularity. Cellular phone manufacturer must have a new strategy when they want to release new cell phone products.

Today’s trend in cellular phone product is the wireless internet capability. Many Cellular phone manufactures such as the market leader Nokia and Samsung try to challenge the iPhone and Blackberry by releasing new Smartphone series that offers touch screen experience. LG Mobile Phone seems to have different strategy. Although they have new cell phone series with Smartphone capabilities, they put on their focus on low-end new cell phone series.

LG Mobile Phone said that this is a logic strategy in the shrinking world economic. However, low-end cell phone, with price range below $100 is very popular in Asia who has most significant market growth rate. With the network limitation, people in Asia much prefer low-end phone with basic function, voice and short message service. Asia is a promising market from the number of population and its economic growth rate compared to other regions. LG Mobile Phone believes that conquering Asia means they get the world under their feet.

Low-end cell phone series become their ammunition to reach their goal of the leading cellular phone manufacturers. According to LG Mobile phone, they are expecting to increase their global market share up to 10%. It seems to be hard in this uncertain economic but they are very optimistic that their low-end cell phones could boost their sales volume at least same as last years. It means that LG Mobile Phone expect to sell more than 100 millions cellular phones this years. However, this cell phone manufacturer will keep their strategy away from very low-end cellular phones product, priced $20 and below which is dominating by Chinese manufacturers.

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