Pestel Analysis of Mobile Phone Industry

Pestel Analysis of Mobile Ph mavin industriousness Political Mobile mobilizes remove now rick a tool with which political parties git forthwith target voters. People with smart predicts green goddess now fool movie advertisements and messages via the internet. According to the Economic Intelligence social unit (2012), 83% of Ameri bottomlands who ingest a smartphone or inking pad argon registered to vote. This new(a) gimmick is forebodeed m-campaigning and is presently nigh common in America. Barack Obama and Mitt Romney be two using this as a medium for their campaigns. campaign French President Nicolas Sarkozy set up a Twitter account to religious service him in his re-election bid.This come bys the maturation importance appreciation of fluid phones by politians. in that respect is potential here for some companies to use this military strength as a bargaining tool with g everyplacenments and potentially charge political parties to have built in apps on the phones. (Economic Intelligence Unit, 2012) Thanks to location-tracking, potential supporters w fixethorn prevail an automated message urging them to land in just as they be go a voter-registration office, or to turn up to a nearby rally (EIU, 2012) The brisk phone commercialise in Africa is one which is heavily affected by politics.The to a greater extent unstable a country is the much the economy is constrained. This has a negative establish on imports press release into these countries. Africa has a history of political mental unsoundness and coups. According to AfricaGoodNews. com the last hardly a(prenominal) tenners have hangn a huge decline in the number of state of war torn countries. The number of countries in Africa considered completely(11) and partially(34) free like a shot has risen tremendously since 1972(3 and 10 respectively). These figures suggest that, from a political point of view at the real least, Africa has turned a major corner. A new more s table standard of life looms over the horizon.This whitethorn signal a new duration of stability in the unpolluted. (AfricaGoodNews. com) According to Techwireasia. com mainland china is the biggest call market in the world. They boast over 1 jillion meandering(a) phone subscribers. However political factors have a huge influence on the market. The three biggest players in the market chinaware Mobile, China Unicom and China Telecom are majority-owned by the Government. This bear be a potential oportunity or threat. It can be an opportunity as long shape agreements with these providers can cement a companies place in the market and provide a platform for further development.On the other hand these companies in the next few years may begin to promote and desire to make deals with China based manufucturers and slowly foreshorten the market share of the market leaders. (Techwireasia. com, 2012) Economical The global smartphone market is quite an competitive market. Across the land batch are paying high prices for these harvests. In Ireland the prices for the top three phones on the market are the HTC One X (519. 99), the Samsung Galaxy SIII (569. 00) and the iPhone 5(579. 99) (Carphone Warehouse, 2012). These phones are in excess of 500 to buy which is expensive to the medium person.At such a high price, such goods are very sensitive to a customers stinting situation. We provide look now at such economic indicators which could influence sales in this pains. The process of an economy can be calculated by its Gross Domestic Product(gross domestic product). According to figures released by Trading Economics (2012) the GNP in the Euro surface area is -0. 4%. This figure represents the effect of the financial and economic crisis europium now finds itself in. European countries like Italy(-2. 6%), Greece(-6. 3%), Portugal(-3. 3%) and Spain(-1%) are all in recession.Other countries which have a positive gross domestic product are experiencing very slow ontogenesis like Ger some(prenominal) a(prenominal)(0. 5%), France(0. 25%) and Austria(0. 2%). The smartphone industry will prolong in Europe due to these figures and sales growth will be slowed solidly. These figures can be utilise to highlight countries and regions where economic growth is inviolable. It is shown in tables 2,3 and 4 (Appendices) that there is strong economic growth in Asia, easterly Europe and Africa. (Trading Economics, 2012) These are areas in which the industrious phone industry should concentrate marketing strategies.Countries which show huge market opportunities are China, India and Australia. These countries are booming. China has a tribe of 1. 3 billion and gross domestic product of 7. 4%. India has a population of 1. 2 billion and GDP of 5. 5%. The mobile phone industry should place huge emphasis on stressful to gain a share of these expanding markets. Africa is a continent known more for its poverty than prosperity. However it is a continent with great potential. From an economic perspective many countries are showing strong economic growth such as Rwanda and Nigeria for example which have a GDP of 9. % and 6. 3% respectively. Over the aside decade six of the worlds ten fastest- ontogeny countries were African. In eight of the past ten years, Africa has grown faster than East Asia, including lacquer (The economic expert, 2011) If we look at unemployment figures released by the IMF (2012) we can put one across a similiar trend that shows unemployment rising across europium with the notable exception of Germany. The rate for the euro area for the hour quarter of 2012 is 11. 2%, up from 7. 6% in 2007. Rates in North America beginnert look too good every with Canada at 7. 2% and US at 8%.Again we can see that the shining lights are in Asia with China, Korea and Japan showing the lowest unemployment rates (need figures ). pull down though many of the industrys products are made in Asia, but the markets over there see m to have the most potential to grow. Socio-Cultural The representation we use phones is constantly changing. A young OECD subject goes into great detail about how people are using the internet and mention a debate called the Global Internet Phenomena Report in Canada (OECD, 2012). put back 1 in the Appendices show that peoples demand for real time entertainment is growing rapidly over the last few years.In 2012 the television system streaming service Netflix accounted for 32. 9%, near one third, of all downstream traffic in the unite States. This suggests that consumer preferences are moving towards high quality video streaming and audio features. People want more entertainment from their phone. There is an opportunity the industry to notice this and focus resources on achieving these demands. (OECD, 2012) There is surely a fear amongst those companies in the market that somebody is going to come along with a new product which yet over again revolutionises what we define as a mobile phone.The good news for the market is that dismantle though engine room and demands are constantly amend and increasing we feel it is worth mentioning that a mobile phone is still an essential device for almost everybody. Nowadays people have a wide selection of devices with which to use the internet, blackberrys, iphones, pcs, macbooks, ipads and tablets. Everyone has their own favourite device. few people have switched from pc to mac. Some people prefer tablets. But everybody needs a phone and its capabilities seem to be consolidating all those of other devices.It can send e-mails, it can browse the web, it has Facebook and Twitter, it has live tv, it can be a music player and so on There is very little you can no longer do on a phone. From a social point of view there is zero point that could threaten the need for mobile phones Environment environmental issues are becoming more prominent in the mobile phone industry in recent times. The WEEE Directive was intro duced in the EU 2005 whereby any pine electrical or electronic equipment can be returned to the retailer free of charge provided that you purchase an percentage point similar to the returning item (Selin & VanDeveer, 2006).This means to help the environment, mobile phone companies are mandatory, by law, to wee-wee unwanted mobile phones. It is estimated that two million phones will be replaced this year causing 2,000 tons of swash (Kavanagh environmental), proving it is anthropogenic what has caused irradiation issues. For several years now, many people have speculated about the dangers of radiation from reservation calls. The main worry is that this could be a cause of cancer. It is reported that the risk of gliomas (brain cancer) has increased by 40% since the introduction of mobile phones (Kovach, 2011).Radiation from mobile phones may have serious consequences to humans as it is causing the population of bees to decline who are essential for crop growth preventing food sho rtages (Lean & Shawcross, 2007). Legal There is a push-down storage of statute associated with the mobile phone industry. Patents are currently a big advantage in the mobile phone industry. pic ancestor The Atlantic, 2012. One can see that the common denominator is orchard apple tree. They are the only company which own valuable patents with regards to design and hold a strong market share in the market in which these phones are sold.According to the Atlantic (2012), Apple are reservation the lions share of operating profits while Samsung and HTC are the chasing pack. Ownership of these patents is a competitive advantage. Issues arise again and again over patents, which is most notably seen in the Apple versus Samsung court case, which only came to a final decision in recent weeks. According to the US Daily Mail, Samsung had to pay $1. 05 Billion to Apple for write their iPhone in the manufacturing of the Samsung Galaxy range (Murphy, 2012).A law went into effect in San Franci sco early last year which required that all retailers must display how much radiation each phone emits (Kang, 2010). With just under three hundred million Americans using mobile phones, this is something which has the potential to hit the industry very hard if any significant study shows a link between phone use and cancer (Kang, 2010). The EU has introduced new legislation in the last few years aimed at significantly reducing the cost of making planetary calls and roaming. It is now 68% cheaper to make a call while abroad than it was in 2006 and it is 81% cheaper to receive a call.The price of text messages has been reduced by 60% (Europa, 2012). References Economic Intelligence Unit (2012), piece Politics Spreading the m-word, ABI/ inform Global. operable Online at http//search. proquest. com/abiglobal/docview/926036961/139DAC0C8916F0BFAF4/18? accountid=40346 Accessed 10th October 2012 Africa Good News (2012), riotous facts and quick stats about Africa AfricaGoodNews. com. functional Online at http//www. africagoodnews. com/africa/facts. hypertext mark-up language Accessed 16th October 2012 OECD (pg. 24, 2012) OECD Internet economy outlook easy at http//www. keepeek. om/Digital-Asset-Management/oecd/science-and-technology/oecd-internet-economy-outlook-2012/expanding-connectivity-and-measuring-the-internet-economy_9789264086463-3-en Accessed 4th October 2012 Techwireasia. com (2012) An in depth ananlysis of Chinas mobile phone market Techwireasia Online Available at http//www. techwireasia. com/2733/an-in-depth-analysis-of-chinas-mobile-phone-market/ Accessed 12th October Carphone Warehouse (2012), Pay as you go smartphones, Carphonewarehouse. ie Online Available at http//www. carphonewarehouse. ie/category/Pay-As-You-Go-Smartphones/1_3 Accessed 15th October 2012Europa (2012) Travelling in Europe 2012-2013 Europa. eu Online Available at http//europa. eu/ endure/comm/index_en. htmphone Accessed 3rd October 2012 IMF (2012) Principal Global Indicators I MF. org Online Available at http//www. principalglobalindicators. org/default. aspx Accessed 4th October 2012 Trading Economics (2012), GDP growth rates, Available at http//www. tradingeconomics. com/gdp-growth-rates-list-by-country Accessed 4th October 2012 The Economist (2012) After decades of slow growth, Africa has a real regain to follow in the footsteps of Asia The EconomistOnline Available at http//www. conomist. com/ invitee/21541015 Accessed 18th October 2012 Atlantic. com. (2012, August). The State of play in the mobile industry in one venn diagram. Retrieved October 1, 2012, from The Atlantic http//www. theatlantic. com/technology/archive/2012/08/the-state-of-play-in-the-mobile-phone-industry-in-one-venn-diagram/261712/ Europa. (2012). Travelling in Europe 2012-2013. Retrieved October 16, 2012, from Europa http//europa. eu/travel/comm/index_en. htmphone Kang, C. (2010). Cell Phone Indusrty attacks San Franciscos opinion on radiation. The Washington Post Kavanagh Environ mental. (n. d. ). Environmental Objectives.Retrieved October 2, 2102, from Kavanagh Environmental http//www. kavenv. ie/environment. html Kovach, S. (2011, May 31). Cell Phones may Cause Cancer. Retrieved OCTOBER 1, 2012, from Business Insider http//www. businessinsider. com/cell-phones-cause-cancer-2011-5 Lean, G. , & Shawcross, H. (2007, April 15). Are Mobile Phones wiping out our Bees? Retrieved October 4, 2012, from The Independent http//www. independent. co. uk/environment/nature/are-mobile-phones-wiping-out-our-bees-444768. html Murphy, D. (2012, October). Samsung losing Apple Court Case. Retrieved October 16, 2012, from Mobile Marketing http//www. obilemarketingmagazine. com/content/samsung-loses-apple-court-case Selin, H. , & VanDeveer, S. D. (2006, December). ABI/INFORM Global. Retrieved October 1, 2012, from ProQuest http//search. proquest. com. ezproxy. wit. ie2048/abiglobal/docview/224017129/13 99337313516FFA994/1? accountid=40346 Appendices Table 1 Aggregate Traffic Com pisition, North America pic address (OECD, 2012) Table 2 GDP in Asia 2012 Q2 pic Source (TradingEconomics. com) Table 3 GDP in Eastern Europe 2012 Q2 pic Source (TradingEconomics. com) Table 4 GDP in Africa 2012 Q2 pic Source (Tradingeconomics. com)