LG Chem SWOT Analysis, Competitors & USP

LG Corporation

Chemicals & polymers, industrial materials, IT & electronic materials

Industrial Products and Chemicals

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Below are the Strengths in the SWOT Analysis of LG Chem:

1. Steady revenue growth with increasing annual revenue
2. Battery business with an expected growth to 16 trillion KRW(Korean Won).
3. First mover’s advantage for the group for entry into the production of lithium-ion batteries.
4. Tremendous R&D capabilities, which also receives investments up to 16 million KRW.

Here are the weaknesses in the LG Chem SWOT Analysis:

1. Stagnant market share in the sector as better technology & demand drive consumers to turn to competitive players in the market
2. Over dependence on Petrochemicals which accounts for more than 70 % of the Global revenue for the group

Following are the Opportunities in LG Chem SWOT Analysis:

1. Entry into the LCD glass sub-slate business which is an upcoming technology, investments of up to 700 billion KRW.
2. Overseas expansions in US, UK and the Middle East have created a wider customer base, attracting increased profits & revenues.
3. Global battery market expected to grow to 50 trillion KRW by 2020, as LG Chem aims to capture market share of the global electric-car battery market.

The threats in the SWOT Analysis of LG Chem are as mentioned:

1. Uncertain global economic trends as rumors of another Global Recession loom over the world, which may result in lesser purchase of technology and increased losses to the business.
2. Stringent laws & regulations regarding Petrochemicals and their trade with increasing competition can result in lesser profits and more unfair trade.
3.Development of electric vehicles such as GM’s Volt, have to increase steadily, otherwise a major chunk of LG Chem’s revenue from the sale of electric batteries will be adversely affected.

Below are the top 3 competitors of LG Chem:

1.Samsung SDI Co.
2.Sony Corp.
3.Tianjin Lishen Battery Co