Executive SummaryThe Consumer Electronics Home Appliances Essay

Submitted By TranTony1990Gmai
Words: 664
Pages: 3

Executive Summary
The consumer electronics, home appliances and mobile communications industry produces a wide range of products; from flat panel TVS, refrigerators, audio and video products and more. This industry is very predominant because of the lifestyle of people today rely on these technologies. The reliance on technology has made the consumer electronics, home appliances and mobile communications industry a very lucrative industry. LG Electronics Inc. is a subsidiary of LG Group
(formerly Lucky Goldstar). This subsidiary was founded 1958, in South Korea.
Consumer Electronics, Home Appliances and Mobile Communications Industry
Political - Tax regulations on shipping packaging vary depending on U.S state and internationally.
Tariffs on products also vary by country.
Economic - Industries are still recovering from the 2008 recession which is affecting their profits.
Social – Consumer’s with busy lifestyles demand innovative products that enhances their lives.
Technological – Increase in technological innovation in the industry and ability to increase efficiency while reducing total costs.
Environmental – Consumers today are more energy efficient and demand products with less energy consumption levels.
Legal – Laws that require products to be checked for safety and energy consumption levels be displayed on certain products.
Appendix B. Porter’s 5 Forces
Rivalry Competition – High
There are many competitors in the industry; such as Sony Corporation, Panasonic Corporation and
Samsung Electronics. Competitors all have similar products with different patents and trademarks, allowing consumers to easily switch between competitor products.
Threat of New Entrants – Low
New entrants do not have the number of patents and trademarks that existing competitors have, giving new entrants a disadvantage in joining. There is a high capital requirement to buy the equipment, machineries, infrastructure and people necessary for the operation. Current competitors already built a strong customer base and network; it would be difficult as a new entrant to market themselves. Threat of Substitution – High

Due to the similarities among competitors, consumers have the ability to switch brands depending on their needs at the time.
Supplier Bargaining Power – High
Buyer Bargaining Power – Moderate
Consumers today are well informed of the quality and pricing of products of each competitor. There is no cost to switch between competitors allowing buyers to choose which product they need at their current position.
Appendix C. Driving Forces
Changing lifestyle of consumers – New demands for products that can enrich people’s lives.
Environmental/Societal concerns – People are more energy efficient today and educated in reducing energy costs. This issue causes how consumers today want energy efficient appliances that would reduce the amount of money they would pay for energy consumption.
Technological changes affecting cost and efficiency – With technology, the industry must keep producing new technology to create products