Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 16 pages
Data source: Published sources
Topics:
LG Electronics (LG); Indian telecom; LG Electronics India Ltd (LGEIL); Global system for mobile communication (GSM) segment; Code division multiple access (CDMA) segment; Nokia; Samsung; Indian mobile handset industry; BenQ; Reliance Infocomm; Tata Teleservices; Chinese handset market; Global player in India
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Abstract
In 2003-2004 the Indian mobile handset industry, with a growth of 568%, was the second largest market after China. There were around 20 handset companies in the global system for mobile communication (GSM) segment, and around 10 players in the code division multiple access (CDMA) segment. LG Electronics India Ltd (LGEIL), a Korean player, entered the Indian market in the CDMA segment in collaboration with the service operator''s Reliance Infocomm and Tata Teleservices. LGEIL captured a 66% market share in the CDMA segment compared to Samsung who had a market share of only 15.2%. Having tasted the initial success in the CDMA market, LGEIL entered the GSM market. The case gives in-depth information on the telecom environment in India, and the growth of the handset market in India. The case discusses the various initiatives taken by LGEIL in the GSM market. The case has scope for discussion on the following points: (1) the nature and characteristics of the Indian mobile handset market; (2) LGEIL''s strategy for retaining its position in the CDMA market; and (3) having been successful in the CDMA market, would LGEIL be able to compete effectively in the GSM market?
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Abstract
In 2003-2004 the Indian mobile handset industry, with a growth of 568%, was the second largest market after China. There were around 20 handset companies in the global system for mobile communication (GSM) segment, and around 10 players in the code division multiple access (CDMA) segment. LG Electronics India Ltd (LGEIL), a Korean player, entered the Indian market in the CDMA segment in collaboration with the service operator''s Reliance Infocomm and Tata Teleservices. LGEIL captured a 66% market share in the CDMA segment compared to Samsung who had a market share of only 15.2%. Having tasted the initial success in the CDMA market, LGEIL entered the GSM market. The case gives in-depth information on the telecom environment in India, and the growth of the handset market in India. The case discusses the various initiatives taken by LGEIL in the GSM market. The case has scope for discussion on the following points: (1) the nature and characteristics of the Indian mobile handset market; (2) LGEIL''s strategy for retaining its position in the CDMA market; and (3) having been successful in the CDMA market, would LGEIL be able to compete effectively in the GSM market?