Thursday, 29 May 2008

LG and GE



GE announce that they might sell part of their division to LG.

As we know GE has 100 year of history as eletronic company

and also they have 2nd biggest market share in U.S. which

2o%. However, they are looking for companies that can

buy their part of division. Basically they have been

selected companies that located in Mexico, Turkey, China

and Korea. On the first hand, it seems a lot of benefits

to purchase part of their division on the other hand

it's extremely risky like a gamble. If it goes into

positive situation then, whoever purchases GE will

be the most dominant electronic companies and

also it will increase sales revenue and possess

more market share. The most synergy effect

is LG might compete against with HI-AL.

However, risky part of this business is

taste of customer and important directors in

each companies have to replace their position.

No body can predict the future, but What I

want to say is regardless of a risk it's better

to purchase because since GE has a good

relationship with retailers, it will give a

chance to sell to various customer in

different markets. The first step will be

hard, however, business is competition.
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