Electronic and Telecommunication

8/2/2019 Electronic and Telecommunication

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Ankit Shah [61]Khushbu Chudasama[62]

Priyal Mithaiwala[63]

Akash Rajput [65]

Dixit Dangi[66]


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Introduction

Electronics:


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Brief Introduction of the Industry

The communications equipment industry makes it possible for users to send and receive information in the formof voice or text via a wide range of devices, and is largely divided into wire and wireless equipment. Wirecommunications equipment includes switching systems and electrical transmissions, while their wirelesscounterparts consist of mobile phones, base station equipment and repeaters for wireless communications.

The communications equipment industry is closely related to the growth of its demand industry, thecommunications service sector, and is directly affected by changes in demand for communications services, andthe level of investment in facilities. The communications apparatus industry, including handsets andcommunications equipment, is technology and capital intensive, entails considerable R&D risks, hastechnologicalimplications for other industries, and is heavily dependent on human resources withtechnological expertise.

The communications apparatus industry is playing a key role in the ongoing establishment of a sophisticatedinformation-based, or ubiquitous,society. Furthermore, it is witnessing the creation of new sources of demand asits convergence with new technologies is contributing to a broad expansionof the scope of applications.Inparticular, the wireless communications apparatus sector will have stronger economic spillovereffects with regardto the vast range of products involved, such as mobile phones, equipment and infrastructure, mobile content, andsoftware.

Since the 1980s, when it began to secure technologies of its own, the Korean communications apparatus industryhas shifted its focus towards the manufacture of advanced products such as mobile phones and communicationsequipment.

In particular, in the 1980s, Korea independently developed and exported the TDX electronic telephone exchanger.Koreas technologies of its own in communications equipment including TDX have served as the basis for thedevelopment of the CDMA system, which Korea commercialized for the first time in the world in the mid-1990s.Furthermore, since the mid-2000s, Korea has been taking the leadership in the globalnextgenerationmobile communications industry, having succeeded in commercializing the WiBro(Mobile WiMAX)and HSDPA services, and developing LTE (Long Term Evolution) handset modem chips for the first time in theworld.


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Industries in South-Korea

Samsung:- Company History: Samsung Electronics Co., Ltd., is the chief subsidiary of South Korea's giant Samsung Group and one of the

largest electronics producers in Asia. Products built by Samsung Electronics include televisions and manyother kinds of home appliances, telecommunications equipment, and computers. Its most importantproduct is semiconductors. Savvy management and heavy investment in research and development in thelate 1980s and early 1990s were turning the company into a leading contender in the global electronicsindustry.

Samsung Electronics was created in 1969 as a division of the mammoth Korean chaebol Samsung Group.The unit was established as a means of getting Samsung into the burgeoning television and consumerelectronics industry. The division's first product was a small and simple black-and-white television that itbegan selling in the early 1970s. From that product, Samsung Electronics gradually developed a diverseline of consumer electronics that it first sold domestically, and later began exporting. The company alsobegan branching out into color televisions, and later into a variety of consumer electronics and appliances.By the 1980s Samsung was manufacturing, shipping, and selling a wide range of appliances and electronicproducts throughout the world.

Although the rapid growth of Samsung Electronics during the 1970s and early 1980s is impressive, it didnot surprise observers who were familiar with the Samsung Group, which was founded in 1938 by Byung-Chull Lee, a celebrated Korean entrepreneur. Lee started a small trading company with a $2,000 nest eggand forty employees. He called it Samsung, which means "three stars" in Korean. The company enjoyedmoderate growth before the Communist invasion in 1950 forced Lee to abandon his operations in Seoul.Looting soldiers and politicians on both sides of the conflict diminished his inventories to almost nothing.With savings contributed by one of his managers, Lee started over in 1951 and within one year had grownhis company's assets twenty-fold.


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LG

LG Electronics

LG Electronics (Korean) is a global electronics company headquartered in Yeouido, Seoul,

South Korea. LG Electronics is the world's second-largest manufacturer of Television sets andthird-largest producer of mobile phones. It is the flagship company of LG Group, one of the

world's largest electronic conglomerates. The company has 75 subsidiaries worldwide that

design and manufacture televisions, home appliances, and telecommunications devices.

LG Electronics owns Zenith Electronics and controls 37.91 percent of LG Display.

LG Telecommunications

LG Telecom (Korean) was a South Korean telecommunications and Mobile phone operator

controlled by the LG Group, one of the country's largest chaebol. LG Telecom became one of

the first companies to launch a commercial 3G service using PCS technology. In 1997, this

was followed up by launching the second PCS network, offering greatly increased data

transmission speeds.

LG Telecom also offers a variety of mobile services. Bank On is one of the most popularMobile banking services in South Korea and MusicOn is an on-line music store In July 2006,

the South Korean government has cancelled LG Telecom's business license for a W-CDMA

wireless communications system after the company opted not to develop the technology.

LG Telecom will instead continue investing and upgrading in its CDMA2000 EVDO Rev. A

network. In January 2010, LG Telecom merged with LG Decom and LG Powercom. As of 1 July

2010, LG Telecom changed its name to "LG U plus"


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SWOT Analysis;;

SWOT is the tool to see that where organization stands, which areas required improvement,which areas required serious consideration, which would be the source of growth, whichthings need avoidance and so on. The SWOT of LG will help to understand the position of LGin the market.

Strengths: LG is a multinational company and a recognized brand around the world. It has

successful established not only in developed countries but also in developingcountries. LG products are reliable, easy to use, and have simple designs whichsatisfy customers thats why LG have the advantage of having loyal customers.In LGCorporation the research and development has given greater importance becauseto satisfy the customers and provide the customers what they want the research

and development id required. LG try to keep products innovative to attract thecustomers and to capture more market share. LG is at its growing stage and itsgrowing quickly. It is producing solid products which rapidly satisfying thecustomers.Weaknesses:

The big weakness of LG is that it has very few competent employees mostly are not skilled andalso there is no training and development concern for employees.


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Opportunities:

The electronic market is expanding rapidly which is a great opportunity for LG to expand

itself in new market and to capture more market share. It also can expand its target market

geographically and socially both by introducing new products in existing market and existing

products in new markets.

Through the innovation in existing products it can attract more customers because atpresent it is behind the market leadership so to become a leader it has to make innovations

to attract potential buyers and retain existing customers.

Threats:

As the competitors of LG are more dominant in the market and continuously improving theirproducts so they can take away the existing customers of LG, so it has to work very hard to

retain and attract customers. The condition of economy all around the world is not good and

it is affecting the purchasing power and priorities of the customers, people are facing

difficulties in satisfying basic and needs so how they can spend on electronics which is

considered as luxury items. This situation can affect the sales of the company.


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ROLE OF THE GOVERNMENT

Government nurtures the electronics industry in Korea in at least four ways.

It provides a legislative basis for growth of high-technology industry through means such asnational banking regulations, low-interest loans, tax incentives, and duty-free import of selectedcapital goods.

It promotes education and R&D for high-tech industry by providing direct financial support topublic and nonprofit institutes, universities, and other educational institutions, primarily throughthe Ministry of Science and Technology (MOST); the Ministry of Trade, Industry, and Energy(MOTIE); and the Ministry of Information and Communication (MOIC). Such support often involves"partnering" with both established and emerging firms in cost-sharing new product or technologydevelopment.

It funds infrastructure development, including highways and transportation systems, rapiddissemination of Internet-type services, etc., and through construction of "science parks." The mostprominent of these is Taedok, twenty miles outside Seoul. Infrastructure development still lagsmanufacturing growth, however.

It uses its authority and leadership in cooperation with industry, the educational establishment, andthe media, to promote development of a sophisticated technoculture in Korea.


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Government Policies and Incentives

Korea has dealt with convergence and the new industry at thegovernmental level and has been actively pushing ahead withinvestment in the IT industry, including the communications sector,in order to strengthen their competitiveness.

As such, the Comprehensive Promotion Strategies for New Growth

Engine Industries were implemented by organizations engaging inIT-related issues including the Ministry of Knowledge Economy. TheKorea Communications Commission has been also implementing avast range of policies with the aim of re-establishing Korea as aheavyweight in terms of broadcasting communications.

In 2009, the government came up with the Comprehensive

Promotion Strategies for New Growth Engine Industries in order topromote the broadcasting and communications convergenceindustry at the governmental level, into which a total of KRW24trillion 500 billion will be injected over five years up to 2013

i f i d d


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Overviews of Business and Trade at

International Level


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TRADE RELATION OF INDIA AND


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TRADE RELATION OF INDIA AND

SOUTH-KOREA

Economic relations between India and Korea have beenstrengthening, the currentsize of trade and investmentbetween the two countries is relatively low comparedto the size and structural complementarities. Both the

countries have comparative advantages in differentproducts in the same industry, Indian and Korean tradegradually has become more compatible over time. Thetrade intensities between the two countries reveal that

there is huge scope for increased investment andtechnological collaboration between the two countries.Further, there is huge potential for trade in services.


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India and South Korea are the third

and fourth largest economies after

China and Japan

India has introduced wide-ranging economic policy

reforms that has resulted in consistent high economicgrowth over the last one and a half decades, makingIndia the 10th largest economy in theworld. This isevident from the fact that bilateral merchandise tradeincreased from$0.55 billion4 in 1991 to $8.86 billion in2007.5 Korea has also emerged as an important sourceof FDI for India. For greater economic co-operation,both countries agreed in 2005 to establish a Joint StudyGroup (JSG) to comprehensively


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Trade policy of two country

It reform has formed a major part of Indias economic reforms agendaThe average tariff rates have beenbrought down substantially in recent years from 32.3 per cent in 2001-02 to 15.8 per cent in 2006-07.valuatetheir economic relationsIndia has joined various other regional trading arrangements including the India-Korea CEPA concluded in August 2009.Korea has continuously liberalised its trade and investmentpolicies andbusiness related regulations to enhance and sustain her economic development.Other important countriesand blocs with whom Korea has agreements are Singapore, Peru, EFTA, the US and ASEA Nations to enhanceand sustain her economic development.

Korea also has a higher share in total world merchandise trade as compared to

India. and also a major importer of services while India has emerged since 2001 as a significant exporter ofservices. In 2007, India ranked 26th and 18th and SouthKorea ranked 11th and 13th among merchandiseexporters and importers respectively in theworld. Indias share in total Korean exports and

imports rose from 0.67 and 0.41 per cent in 1990 to 1.70 and 1.15 per cent respectively in 2007. The increasein merchandise trade between the two countries has been attributed to thechanging demand structures. TheIndian export basket has traditionally consisted of a few lowvalue-added products. However, the compositionof Indias export to Korea has undergone significant changes post-2000. Mineral fuels, oils and products oftheir distillation group has now become an important exporting group, having a35 per cent share in totalexports in 2006, followed by ores, slag and ash; cotton and other product groups of 40% of Indias export to

Koreaproduct groups. However, some conventional export commodity groups such as cotton have lost theirdominant position from a 17.4 per cent share in total Indian exports in 1990 to 8.7 percent in 2006.


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PRINCIPAL FINDINGS

The growth of Korea's electronics industry has been characterized by two major takeoffs that haveturned this nation into a major global producer in less than two decades. These export-driventakeoffs involved rapid technological shifts that emphasized production in different electronicssectors and utilized Korea's most significant international advantage, low-cost labor. In this process,Korea's territorial division of labor has played a major role, promoting substantial concentration inthe primate metropolitan region during each takeoff, while a process of dispersion occurs duringintertakeoff periods. Statistical tests with a representative sample of electronics plants show thatterritorial location is a far more important determinant of interregional and local integration than

the temporal parameter. A narrow focus on takeoff dynamics that does not incorporate theterritorial dimension would therefore provide an inadequate explanation of Korea's emergence inelectronics production and of the domestic integration of this industry.

Korea's electronics capabilities in the past 25 years have undergone remarkably consistent andrapid expansion in terms of (1) size and capacity of facilities, (2) technological expertise andsophistication, and (3) income earned and impact on the world market. Korea has built and iscontinuing to build a stand-alone capability in a broad range of electronics technologies, includingDRAM, SRAM, and ASIC design approaches; electronics materials and packaging; and developmentof key new information technology products (e.g., displays). The nation's strategic focus is on

achieving dominance not only in production and manufacture of electronics products andcomponents, but also in creation and innovation of new technologies in the field. Korea isdetermined to remain internationally competitive in electronics in the long run and is prepared tocommit the required long-term financial and logistical resources to achieve its goals.

Electronic and Telecommunication

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