Product development strategy for LG Electronics in optical storage-based consumer electronics

Abstract

With the dawning of the digital era, many home electronic products are emerging. One of the fastest growing and most wide-spread products in the market is the DVD player. Few digital products have achieved as fast a market penetration, and with as rapid a price drop, as the DVD player. This thesis touches on the product development strategy for my company, LG Electronics, in terms of short-range and mid (long)-range plan, specifically on means to sustain and keep the profit margin reasonable in spite of the current competitive market situation. The system dynamics tool is used as a method of analysis and assessment on the current DVD player market situation. Based on the results of the analysis, I propose the following strategies, in terms of products and technologies, for LG Electronics to maintain sustainable growth in the industry. Firstly, in terms of mid-range plan, the company should broaden its DVD product scope and make profit by adding value. Secondly, in terms of long-range plan, the company should draw a big picture for further growth by taking into account the development of new disruptive technologies and products in the industry.