Answered Essay: International Management question-Identify and discuss challenges and obstacles LG Electronics faced in the global

International Management question-Identify and discuss challenges and obstacles LG Electronics faced in the global

Expert Answer

 

The following are the challenges and obstacles of LG Electronics that the company is facing globally-

Life cycle of the product – The life cycle of the product is less globally. This is not only for LG but this is a challenge for all the major Electronics producers PAN globe.

Demand of LG goods in the market – The demand of LG Electrical goods is almost continuously increasing day by day just like other electronic’s manufacturers. People want more and more. And if LG produces a product in a large scale and if the demand fluctuates a bit, it shall result a heavy loss for LG Electronics in the market.

CSR & Govt. Policies – Now a days not only to LG but to all major players, the Govt. is pushing a lot for their corporate social responsibilities. Things like usage of harmful chemicals and human exposure while making, energy used while the making, to the end of product’s life, usage by consumers – Govt. is keeping a close eye and continuously hammering all the big players like LG in the market for CSR.

Very complex supply chain – It becomes very difficult for a giant company like LG to reach each and every part of the world. Some times due to weather, geographical conditions, war zone and other conditions makes the supply chain more complex or next to impossible. But the companies like LG must deliver their goods and products every where – when and where needed on time and that’s a challenge.

Competitions and Margins – Due to a very high levels of internal competition the profit margins of LG Electronics have reduced to sustain in the market and give a tough and tight competition to competitors globally along with maintaining a good quality products with a good after sales services and that to a marketable rates globally.

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