An Investigation Into Operating Strategy of Panasonic and LG Electronic in Chinas Air Conditioning Market

Abstract The dissertation investigates into operating strategy of Panasonic and LG Electronic in Chinas air conditioning market. It focuses on studying their entry modes, competitive strategy, and marketing strategy. Due to the characteristics of the study, qualitative research was chosen as research method. Data was collected mainly from published literature, textbooks, company annual report, interviews, and selected cases. The results of the research indicate both Panasonic and LG Electronic chose joint venture as their entry mode in China. Culture had great influence on their marketing strategy. Panasonic adopted differentiation strategy while LG Electronic carried out blue ocean strategy to enhance their core competences in China. They adopted globally unified branding strategy while other elements of marketing mix were carried out localization strategy to meet local customer needs. Subjectivity, lack of reliability and validity are major limitations and weaknesses of the research. It is suggested that future study adopts quantitative method and develops a rigorous model to reduce subjectivity. A comparative study of Western MNCs versus Korean firms in operating practices should be carried out