 To survive increased competition with rival Samsung, LG India is trying to cope with loss of market share by dividing its business into four major divisions. The new structure for LG will come into place from next year, when the entire business of the company will be divided into four verticals - home electronics, kitchen appliances, air conditioners, and mobiles and IT. Each vertical will have a head who will report to the managing director of the company.
According to Soon Kwon, president - Southwest Asia region and MD, LG India, there was no re-organisation. The alignment of LG India business verticals was on lines of LG Worldwide, which is a routine exercise. "There are some transfers of people between branches and corporate and that is also routine reshuffling for building sales and marketing excellence," he added
There has also been news that LG has reshuffled branch managers across India along with increasing the number of regional managers. As the consumer durables market has been facing a slowdown and there is also a need to survive the growing competition, the company has gone in for re-organisation to maintain a sharper focus on the business segments.
In 2011, the share of LG in air conditioners, came down to 24 per cent from about 30 per cent market share last year, followed by Voltas at 18 per cent and Samsung at 17 per cent. In home electronics (colour televisions), LG has a 25 per cent market, while Videocon group has an estimated share of about 27 per cent.
|
