This is the detailed PESTLE/PESTLE Analysis of LG which discuss the external factors impacting the company; Political, Economical, Social, Technological, Environmental and Legal.


The company originated from Korea, Seoul; today it is part of household of millions of customers across the globe, generating 50 billion U.S dollars in yearly revenues each year. It is the world’s largest producer of washing machines, TVs and other electronic equipments. Established in 1958, LG has aspired to improve the lifestyle of its consumers with latest technologies. LG has the honor of being the first in many things like the first 60-inch plasma TV was developed by LG and produced TV, refrigerators, washing machines and air conditioners for the first time in Korea. The letters “L” and “G” in a circle symbolize the world, future, youth, humanity, and technology. (LG)

The founder of the company is Koo In-hwoi. The company was establishes as an aftermath of the Korean War to provide the people with home appliances and consumer electronics.

Political Factors

India maintains a strong hold on the market of international brands. LG Electronics Inc.  has established its headquarters in India. LG has strategically established its plants in high duty import tax-incentive areas like Greater Noida and Pune. LG in India has promoted export schemes like EPCG (export promotional capital goods scheme) and EOU (Export Oriented Unit).  (singhal, 2013)

LG has to follow the rules set by the environmental protection agency to ensure the safety of its consumers and the global environment.

Much of the business in Korea was brought by variety of industries that ranges from textile to pharmaceuticals, form ship building to electronics. President Park Chung Hee, who was also called the creator of modern Korea, put forward the economic development policy that highlighted the electronic market as the national priority that should be developed. The government appreciated the electronic market and encouraged it to make joint ventures with international group of companies. LG partnered with Hitachi of Japan. (Susan Segal-Horn, 2010)

Economic Factors

The company started its journey under the name of Goldstar Co. It soon became a pioneer in electronics and became LG Electronics Inc. in 1995. The company boosted up its revenues by exporting its electronics. The year of 1980 was of internationalization. In this year LG decided to introduce its products in bigger and developed markets. With the help of established players like Caltex and EDS, LG started introducing its appliances in the markets of US. By the year 2007 the company was well balanced on its feet to start its non-core business along while running the core ones. LG-Philips was the larger manufacturer of the flat screen LCDS. In 2006 their revenues were roughly $23 billion earning them the profit of $500 million. (Susan Segal-Horn, 2010)

Inflation rate in India faced a decline from 10.5 in 2011 to 7.18 % in 2012. LG has benefitted from this situation by making the products at low construction prices and as a consequence LG made huge profits.

GDP growth rounded up to 6% in 2011. This uplift of GDP and the increasing income of the consumers gave LG a golden opportunity to expand and invest in its manufacturing new products. To compete with the ever increasing demands of latest technology and to compete with the fellow industries has compelled LG to invest in its R&D department.  (singhal, 2013)

Social Factors

LG has ensured a safe environment for its employees by protecting their labor rights and providing them help with their individual capabilities. LG has managed to upgrade its goods to help people define their lifestyle. The number of first time users and demand for electronics are increasing due to increasing disposable income. (singhal, 2013)

Working under the slogan ‘Hope for Life’s Good’, LG is one of the leading citizens of the world that has taken measures globally to provide solutions for sustainable environment and has helped the UN Millennium Development Goals (MDGs) with their goals. With the collaboration of governments, academic institutions and NGOs and its employees, LG is taking part in creating an environment full of opportunities and fulfilling lives. (LG)

LG has established a Global Labor Policy that grants its employees the freedom without bearing any pressure. It prohibits hard labor that includes mental and physical pressure for its young employees that are aged under18. (LG)

Technological Factors

As the technology is advancing LG is adding new features to the already existing products as well as innovating new ideas to accommodate its consumers. They focus on developing technology that will drive us forward. The company’s R&D thrives on challenges and has proved itself time and again by introducing the first blue-ray disc and the next generation flat panel display. One of the many honorable goals of LG is to be in the lead of global electronics and information technology. LG Electronics is directing its attention towards ‘Smart Technology’ to fill the lives of its consumers with ease and style. (background of LG electronics incmarketing essay, 2013)

The LG Service Centers are established to help the customers with post- sale issues.

Environmental Factors

LG is innovative in producing products that are eco friendly. According to 2014 Materiality Analysis, LG has aimed to reduce GHC emissions. They tend to develop highly energy efficient products that would prevent environmental pollution and make E- waste take back and resource cycling possible.
LG Chemicals Management System (LGCMS) was established in 2013 by LG electronics to perform the environmental screen test on all the chemicals stored and used in the production sites.

LG has established such technology that will measure the carbon footprint of a product and inform its users how much GHG is emitted. LG electronics Inc. are LG and Tony Awards Go Greener and LG and Greensburg Greentown are the two projects done by LG to ensure safer environment. (background of LG electronics incmarketing essay, 2013)

Law/Legal Factors

he energy efficient products have less GST than the other products for consumer durables. The rules established in 2005 allowed the new ventures to set their own terms commercially but they restricted the existing ones.

LGE acknowledges the hard work and labor performed by its employees and has taken measures to ensure their rights. The company complies with the standards set by UN, ILO, OECD, and other international labor organizations as well as labor laws and regulations. (LG)


(n.d.). Retrieved from LG:

background of LG electronics incmarketing essay. (2013, novemeber). Retrieved from essays, UK:

singhal, n. (2013, september 3rd). LG PESTLE Aanalysis. Retrieved from Finance Concepts:


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