A Study on the growth strategy of LG air conditioner business

Abstract

This paper analyzes the current situation of the air conditioner business, focusing on the industry analysis and key success factors of the leading players, and examining the case of the LG Electronics Air Conditioner OBU. The LG Electronics Air Conditioner OBU became the world’s second largest maker of air conditioners in 1999 and aims to be number one in 2003. It is meaningful to investigate how LG has achieved a major turnaround in a difficult situation, and analyze the core competence of its growth strategy which has led to its success. The key findings obtained from this case study are as follows: to be successful in the competitive world market, it is imperative to have product leadership, cost competitiveness and strong leadership, focusing on growth. Preparing for the next era, it is essential to develop the internal competence of the organization through breakthrough product innovation, creative marketing strategy and strategic decision making for the future.