Strategic Management of LG in Saudi Arabia

Executive Summary

The paper analyze the market structured of telecommunication industry in Saudi Arabia and what basic strategies are needs by LG company to increase its market share in this particular county. The main focus of the research is on LG, its relation with cost and differentiation strategy in Saudi Arabia. The research also analyzes many aspects of competitive strategies and tries to gauge its effect on LG. However, during our analysis it was observed through the research, that LG Company does not operate branded stores in Saudi Arabia because of the regulation of the government. LG has used the source of some retailers to sell its phones in Saudi Arabia.

Strategic Management of LG in Saudi Arabia

Introduction

At the heart of the business management is the development of strategies, adapting it to the specific company and implementation. The company's strategy is a comprehensive management plan, which should strengthen the company's position in the market and to ensure coordination, involvement and satisfaction, compete and achieve global goals (Johnson, 2008). The process of developing a strategy based on a thorough study of all the possible directions of development and activities and is to select general direction, develop markets, serving the needs, methods of competition, attract resources and business models. In other words, the strategy means a company's choice of development path, markets, competition and methods of doing business.

Saudi Arabia is a country that lives mainly distributed through wealth the extraction of hydrocarbons. It is currently the second largest producer of oil and the first within OPEC (Organization of Petroleum Countries Exported). The country's economy is based on the extraction and export capacity of the energy sector. Using this factor Saudi Arabia grew by 6.8% in 2011 and forecasts for 2012 are for growth of 3.8% in 2013 and the 4.4%. The economy is not linked to the production of oil and energy has also increased sustained is around 5%, thus showing a real dynamism. Public spending is often high and allows a redistribution of wealth to the people resulting from the sale of oil, but for 2012 the forecast is positive as it should not be deficit State budget (Paul, 2010).

Discussion and Analysis

Communication is a complex issue and when it comes to communicate across different cultures with diverse languages and backgrounds the situation becomes more complicated and requires much more effort and skills to get the message wanted without any misunderstood or wrong interpretation of it. The key for an effective inter cultural communication is knowledge, meaning a well understanding of the culture of your target to adjust the communication strategy according to the people that you are dealing with (Kozami, 2005).

Task 1:

Significance of the Study

The subject at hand pertains to the discussion of differentiation and cost leadership strategy in context of gearing and analyzing the marketability and profitability of the company. This investigative study undertakes the discussion in a much detailed manner and through a comprehensive research.

In this study we try to explore the ...