A complete PESTAL Analysis of Electronics Industry, #Economy # MBA Syallabus # Compitative Study

1. Welcome

2. A Presentation Report on PESTLE Analysis of Electronic Industry.
(LG)
Submitted to:- IPS Business School
Submitted By:- Dheeraj Rajpurohit
Under Guidance of:- Dr. Aashish Sharma

3. The Indian Electronics industry is being driven by macro factors such as growing middle-class
population and rising disposable income. In addition, declining electronics prices and adoption of
high-end technology devices is leading to an uptick in consumption of electronics devices.
Electronic Industry

4. Industry Scenario
Electronics market in India is projected to reach US $ 228 bn by 2020 from over $ 100 bn in
2016-17
The electronics products segment contributed 82% to the overall market in 2015, while the rest
comprised electronic components.
The Electronic Products industry in India was valued at $ 61.8 bn in 2015, which is further
segmented as follows:
1. Mobile devices (27%)
2. Consumer electronics (18%)
3. Industrial electronics (15%)
4. IT/Office automation (10%)
5. Automotive electronics (8%)
6. Telecom (8%)
7. Strategic (Aerospace and Defense) (7%)
8. Medical devices (4%)
9. Others (3%)
The Electronic component industry was valued at $ 13.5 bn in 2015; of which Electro-mechanical
segment had the highest share at 30%. Passive and active segments handled 27% and 22% share,
respectively, while remaining market of 20% was handled by the Others segment. Nearly 70-80%
of the electronic components market is imports-driven.

5. LG Electronics Inc.
LG Electronics Inc. is a South
Korean multinational electronics company headquartered in ,
Seoul, South Korea.
LG Electronics is part of the fourth-largest chaebol in South
Korea (LG Corporation) and in 2014 global sales
reached $55.91 billion (₩ 59.04 trillion), LG comprises four
business units: Home Entertainment, Mobile Communications,
Home Appliances & Air Solutions, and Vehicle
Components, with Station India as its main production vendor
for refrigeration and washing machines in the Indian sub-
continent. LG Electronics owns Zenith and controls 37.9 percent
of LG Display and since 2008, LG Electronics remains the
world's second-largest LCD television manufacturer. The
company has 128 operations worldwide, employing 83,000
people.

6. PESTLE Analysis of LG Electronic
LG Display Co., Ltd. PESTEL analysis is a strategic tool to analyze the macro environment of
the organization. PESTEL stands for - Political, Economic, Social, Technological, Environmental
& Legal factors that impact the macro environment of LG Display Co., Ltd..
Changes in the macro-environment factors can have a direct impact on not only the LG Display
Co., Ltd. but also can impact other players in the Diversified Electronics. The macro-environment
factors can impact the Porter Five Forces that shape strategy and competitive landscape. They
can impact individual firm’s competitive advantage or overall profitability levels of the
Technology industry.

7. Political Factors
• Political stability and importance of Diversified Electronics sector in the country's economy.
• Risk of military invasion
• Level of corruption - especially levels of regulation in Technology sector.
• Bureaucracy and interference in Diversified Electronics industry by government.
• Legal framework for contract enforcement
• Intellectual property protection
• Trade regulations & tariffs related to Technology
• Favored trading partners
• Anti-trust laws related to Diversified Electronics
• Pricing regulations – Are there any pricing regulatory mechanism for Technology
• Taxation - tax rates and incentives
• Wage legislation - minimum wage and overtime
• Work week regulations in Diversified Electronics
• Mandatory employee benefits
• Industrial safety regulations in the Technology sector.
• Product labeling and other requirements in Diversified Electronics

8. Economic Factors
• Type of economic system in countries of operation – what type of economic system there is
and how stable it is.
• Government intervention in the free market and related Technology
• Exchange rates & stability of host country currency.
• Efficiency of financial markets – Does LG Display Co., Ltd. needs to raise capital in local
market?
• Infrastructure quality in Diversified Electronics industry
• Comparative advantages of host country and Technology sector in the particular country.
• Skill level of workforce in Diversified Electronics industry.
• Education level in the economy
• Labor costs and productivity in the economy
• Business cycle stage (e.g. prosperity, recession, recovery)
• Economic growth rate
• Discretionary income
• Unemployment rate
• Inflation rate
• Interest rates
.

9. Social Factors
• Demographics and skill level of the population
• Class structure, hierarchy and power structure in the society.
• Education level as well as education standard in the LG Display Co., Ltd. ’s industry
• Culture (gender roles, social conventions etc.)
• Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
• Attitudes (health, environmental consciousness, etc.)
• Leisure interests

10. Technological Factors
• Recent technological developments by LG Display Co., Ltd. competitors
• Technology's impact on product offering
• Impact on cost structure in Diversified Electronics industry
• Impact on value chain structure in Technology sector
• Rate of technological diffusion

11. Environmental Factors
• Weather
• Climate change
• Laws regulating environment pollution
• Air and water pollution regulations in Diversified Electronics industry
• Recycling
• Waste management in Technology sector
• Attitudes toward “green” or ecological products
• Endangered species
• Attitudes toward and support for renewable energy

12. Legal Factors
• Anti-trust law in Diversified Electronics industry and overall in the country.
• Discrimination law
• Copyright, patents / Intellectual property law
• Consumer protection and e-commerce
• Employment law
• Health and safety law
• Data Protection

13. Thank You@sharp_Suceess