LG is a major electronics company that offers a wide range of products along with an integrated bundle of services. It provides services throughout the product lifecycle including installation and repair, access to replacement parts, product manuals and support, financing options, and a product return policy. LG aims to create value for customers not just through innovative products but also high quality services that enhance the customer experience.

2. Competitive Advantage
of Manufacturing
Firms Through
Servitization

3. GROUP MEMBERS
SAMIA AHMED MB2M-13-06
FATIMA ARSHAD MB2M-13-10

4. By Manufacturing
Companies
Competitive Advantage Through
SERVITIZATION

5. “Servitization is viewed as the
way in which firms provide an
integrated bundle of both
goods and services or add
extra service components to
their core offering.“
SERVITIZATION

6. SERVITIZATION

7.  Products today have a higher service
component than in previous decades.
 the Servitization of products.
 Virtually every product today has a
service component in it.

8. A Servitized firm
Siemens is committed to
providing outstanding customer
service for the lifetime of your
appliance.
BUT HOW??
SIEMEN
S

9.  Arrange an engineer visit
 Product advice
SIEMENS
•Replacement
spare parts &
accessories

10.  Instruction manuals
 Dishwasher repair action
SIEMENS

11. “Servitization is the innovation of an
organizations capabilities and
processes to better create mutual
value through a shift from selling
products to selling product service
systems..“
SERVITIZATION

12. “Selling product-----------selling
product-service system”

13. More and more manufacturers are
competing though a portfolio of
integrated products and services. This is
a SERVICE-LED COMPETITVE
SRTATEGY and the process through
which it is achieved is called
SERVITIZATION.
SERVITIZATION

14. It goes in a way…

15.  focused on “Product”.
 put their efforts on
 back - end- units
 cost reduction
 product innovation
Traditional Concept

16.  Manufacturers need to consider if they are to
sustain future business and differentiate themselves
from the competition.
 They must integrate client and capability
requirements to provide tailored solutions.
BUT…

17.  Product is the entry ticket into the future
business/profit stream.
 But all future sales depends on services, this is
where
reputation
brand image
 profitability are determined.
customer satisfaction & retention
In Case Of Manufacturing

18. •Significant transformation from
“back end” to “front end” activities.
•Customer-facing front end units are
established to engage directly with
customers
Transformation to
SERVITIZATION

19.  Companies are pushing themselves towards servitization
due to following factors:
 technology
 globalization
 fierce competitive pressure
 profitability
 differentiation in market
 “Why do your customers choose to buy from you
rather than from your competition?”
Main Drivers

20.  Offering great products, technologies or services is
merely an entry stake.
 The need that exists is to maintain an edge in the
way their companies interact with customers. They
recognized that customers often value how they
interact with their suppliers as much as or more
than what they actually buy.
Now Manufacturers are of the
view…

21. •Servitization becomes a customer -
centric approach.
How Companies are
servitizing?
•The trick for companies is to redefine
their offerings in ways that make it easy
for customers to get the benefits they
Shifting the
Traditional Mind-Set

22. •The boundaries between manufacturing
and service are becoming increasingly
blurred.
•More and more manufacturers are
competing though a portfolio of
integrated products and services and the
process through which it is achieved is
called servitization.
Concluding …

23. LG As An Servitized
Firm

24. Introduction of LG
• LG Electronics Inc. is a South Korean multinational
electronics company
• It is the world's second-largest television manufacturer
• The world's fourth-largest mobile phone maker by unit
sales in the third quarter of 2013.

25. • The company was originally established in 1958 as Gold
Star.
• The LG Group was a merger of two Korean companies,
Lucky and Gold Star, from which the abbreviation of LG
was derived
• In past, household products were sold under
the brand name of Lucky, while electronic products were
sold under the brand name of GoldStar
• In 1995, GoldStar was renamed LG Electronics, and
acquired the US electronics company Zenith

26. LG Electronics Pakistan
• In December 03, 2011, LG Electronics and Ruba
Electronics signed a distributor-ship agreement.
• The agreement was signed by Mr. H.S. Paik, President
LG Electronics Gulf region and Mr. Manzoor Khan,
Director Ruba Electronics in a ceremony.

27. LOGO

28. SLOGAN
"Life’s Good” conveys a message that LGE
enriches customers’ lives with its products,
services and technology, and creates a unique
brand identity of the company.

29. Customer Value Creation
LG Electronics is committed to delivering on its promise
to customers of enriching lives through technology
innovation. LG Electronics strives to provide its
customers worldwide with the best value creating
products while listening to their feedback, and
assisting with fast, accurate, and unique service.

30. COMMUNICATION FOR PRODUCT
DEVELOPMENT
LGE is conducting a thorough market and customer
analysis to introduce products that satisfy customer
needs.
A close study of local customers’ lifestyles and
collaboration with local research organizations are
also part of our effort to identify customer needs.
For example ,they develop customized TV for senior
citizens with care facilities

31. PROSUMER MARKETING
COMMUNICATION
LGE has been involve prosumer marketing activity
that allows consumers to be directly involve in the
development stage of products. One main example
of this is the TROMMIZ program, in which 15
housewife bloggers participated in the development
phase of the TROMM washing machine

32. PRODUCT PROTFOLIO
• The company operates its business through
Six divisions:
• Mobile Communications
• Home Entertainment
• Home Appliances
• Air Conditioning
• IT Products
• Energy Solutions.

33. Product Range of LG

34. Bundle Of Services LG
is Offering To Their
Customer

35. PRODUCT QUALITY AND SAFETY
LG Electronics places the highest value on providing
customers with reliable products which they can use
in a safe way. Product safety must be ensured under
any circumstance, and product safety has the highest
priority over sales objective, product design,
marketability and expense issues.

36. PARTS & ACCESSORIES
Order product Part & Accessories direct from
Shop LG or from an LG Authorized Parts
Distributor.

37. De-installation & Reinstallation
Services
They provide the scheduling, management and logistics
concerns off your plate by dispatching our LG-
certified service technicians to de-install the
defective unit and reinstall the operation unit

38. LG’s DIRECT SERVICE
LG have teams of expert technicians in all major
cities service centre. They provide:
• Repairing Services
• They use genuine LG replacement parts, never imitation
• They Provide Home Service And Pick & Drop Free of Cost
• They do In-Warranty and Out-of-Warranty service
• We Provide Technical Solutions And Support For All
Products
• All work backed by LG's promise of excellent service

39. LG Financing Advantage Program
To address business challenge, the LG Financing Advantage
Program offers lease financing solutions tailored to your
specific needs. LG makes it simple to acquire powerful and
engaging display solutions for your present needs while
providing the opportunity to upgrade as your business
requirements change

40. DOWNLOAD & MANUALS
• Download tutorial, manuals, documents,
updates, software, etc for your product TV,
Refrigerators, mobile, microwave oven ,etc

41. HELP AND SUPPORT
LG provides following five options in its online help and
support system in order to resolve any problem or for
guideline regarding usage of product:
• LIVE CHAT :Chat Online with a Support Representative
• EMAIL: Send an Inquiry to LG Customer Service and Support
• PHONE :Call an LG Support Representative

42. • REGISTERATION OF PRODUCT: A few of the benefits that you
can look forward to:
o Handy tips from LG's product pros
o Firmware updates to keep your LG product up-to-date
o News about warranty plans that are best for you
o Exclusive previews of new LG products and innovations
o Special LG offers and promotions
• RETURN :In case of any damage during delivery of product or
malfunctioning of any part within warrantee period then
customer have return facility.

43. CONCLUSION
The brand of LG is delightfully smart. LG strives
to enhance the customer’s life and lifestyle with
not just a product but the combination of
product and services. So, LG wants to create
customer value through their technological
innovative product but also with best
quality customer services