Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of LG Chem analyses the brand by its strengths, weaknesses, opportunities & threats. In LG Chem SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like LG Chem to benchmark its business & performance as compared to the competitors. LG Chem is one of the leading brands in the industrial products and chemicals sector.
The article below lists the LG Chem SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the LG Chem SWOT Analysis:
For LG Chem, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
LG Chem Strengths
The strengths of LG Chem looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. 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.
LG Chem Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. 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
LG Chem Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. 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.
LG Chem Threats
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. 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.
LG Chem Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of LG Chem:
1.Samsung SDI Co. 2.Sony Corp. 3.Tianjin Lishen Battery Co
Hence this concludes the LG Chem SWOT analysis.
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About LG Chem
LG Chem Overview
Chemicals & polymers, industrial materials, IT & electronic materials
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From quality petrochemicals to advanced IT and electronic materials, we have innovative solutions you won’t find anywhere else.
LG Chem STP
Businesses looking for growth, performance and innovative solutions.
Businesses in the field of petrochemicals, IT and electronics.
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This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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