LG Chemical: Capacity Expansion and Product Mix in China Harvard Case Solution & Analysis

LG Chemical entered into the Chinese market for ABS, general plastic, through their subsidiary LG Yong Xing ("LGYX"). Since its founding in 1996, LGYX was targeted Chinese manufacturers, which are served in the domestic market and have made only one type of low-quality ABS. By the end of 2006, LGYX was the largest company in the Chinese market, ABS, with 27% market share and sales of U.S. $ 709 million a year. However, the ABS market is changing. When exporting Chinese producers increases, the demand was shifting to higher grades ABS. In addition, LGYX faces competitive pressures from local producers as well as producers in the Middle East. If LGYX stick their current product range? Management decided that he should critically review the strategy of the subsidiary for the past ten years, in order to not be involved in the rigid thinking of the "Hide
Bowon by Kim, Sanghyung An, Chulsoon park Source: University of Hong Kong, 29 pages. Publication Date: January 22, 2008. Prod. #: HKU709-PDF-ENG

LG Chemical: Capacity Expansion and Product Mix in China Case Solution Other Similar Case Solutions like

LG Chemical: Capacity Expansion and Product Mix in China

Share This