Blue Ocean Strategy Case Study

LG entered India in 1997, two years later than its rival Samsung, but was still able to capture the leadership position by adopting aggressive competitive strategies. LG initially launched a line of products targeting health conscious consumers. For example, it launched a television that reduced eyestrain. Such product differentiation helped the company build its brand image and market share in the early years of its operation in India. By 1999, it had set up local research and design facilities, manufacturing plants, and a network of service centers. India, with a population of more than 1 billion functioned like dozens of smaller regional markets. To meet the needs of Indian consumers, LG rolled out refrigerators with larger vegetable and water-storage

II. “A ‘Blue Ocean Strategy’, which is to move away from ordinary products to create genuine differentiation.” Why and in what way has LG put the Blue Ocean Management campaign into practice?

LG, a global electronics player is present in many markets. It faces challenges to sustain and grow at a faster pace against tough competition from local and global players. It adopted competitive strategies like localization and was successful in gaining dominance in many markets. But with increasing competition, LG needed to sustain its position and increase its profits across markets. The Blue Ocean Strategy provides a systematic approach to creating uncontested market space and making the competition irrelevant. With an aggressive aptitude, LG naturally chose to adopt the strategy to make the competition irrelevant.

The reasons behind LG adopting Blue Ocean Strategy are,

 To create untapped market space and higher profitable growth

 The company wanted to be among the top three in the consumer electronics market.

 LGE plans to double its sales volume and profit by 2020 with 30% of its sales volume and 50% of its profits coming from Blue Ocean products that is the differentiated products which earned higher