Pestel Analysis of Mobile Phone Industry Political Mobile phones have now become a tool with which political parties can directly target voters. The result was that it gained market share in the United States market. By 2018, the company had achieved 100% use of renewable energy in its facilities globally. and Google have also faced significant problems in overseas markets caused mainly by regulatory issues. The result was that the iPhone 11 attracted very high sales. Samsung PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. People with smartphones can now receive video advertisements and messages via the internet. Competition is also a significant factor affecting the demand and sales of smartphones. Consumer privacy, as, well as data security, are some of the leading concerns attracting the highest attention from government, agencies. Smartphone Industry Pestel  Smartphone Industry Analysis Team 5 University of North Alabama MG 498-I01 Dr. Dennis Balch Team 5: Bradi Reader – Document Manager/Formatting and Editing Bailey Claunch – Industry Overview Kylie Corum – PESTEL Factors Kyle Stephenson – Porter’s Five Forces Matthew Vest – … Strong economic conditions in key markets mean stronger demand and higher sales. By the end of 2011 the United Kingdom mobile phone market value is estimated to gain a raise of 29.1% since 2006 valuing … This preview shows page 1 - 2 out of 4 pages. Apple’s sales, on the other hand, grew stronger following the release of the iPhone 11. PESTLE analysis is a … A Pestel analysis of the smartphone industry. Sociocultural factors are now a key consideration in the area of business. The uniqueness in its design gives the company a competitive advantage which … There are several factors driving demand in the smartphone industry including changing consumer lifestyles, technological innovation, and the proliferation of internet-based services that can be accessed easily through smart devices. Pestel Analysis of Mobile Phone Industry Political Mobile phones have now become a tool with which political parties can directly target voters. For smartphone companies, such political and regulatory issues mean reduced sales and loss of revenue. It is not just Huawei but Big tech in the US is also facing similar troubles. The chosen market for this market analysis example is the smartphone industry. Pest Analysis On Smartphone Industry  Smartphone Industry Analysis Team 5 University of North Alabama MG 498-I01 Dr. Dennis Balch Team 5: Bradi Reader – Document Manager/Formatting and Editing Bailey Claunch – Industry Overview Kylie Corum – PESTEL Factors Kyle Stephenson – Porter’s Five Forces Matthew Vest – … Pestle analysis of UK mobile industry. Smartphone analysis 1. It is also necessary for the government to adopt policies for the use of software and social media and keep it on the right tr… Want to read all 2 pages? In the smartphone industry, social trends are also playing a pivotal role in driving demand. 2%). Political environment- It consists of laws, government urgencies, … External environment – Smartphone industry Smartphones are not only revolutionizing the mobile phone industry. China, India, and the United States remain the largest markets for smartphones with the highest number of users. The tool I am going to use to analyse the business environment in Nigeria is PESTEL Analysis. However, the number of smartphone users continues to grow around the world, and companies are investing more in researching people’s habits and preferences. PESTEL analysis of Apple. The supply chains of companies like Apple and Samsung are spread over several countries throughout the globe. Higher government and regulatory oversight of technology firms have made it evident. Smartphones have ushered in a new generation of modern communication. After the slowdown in 2019, when the demand for new handsets declined, due to several factors, demand is again expected to grow in 2020. Pestel Analysis of Mobile Phone Industry… With time, competition among the leading players has grown a lot. The situation of the world economy or significant local economies affects both demand and sales. According to the Economic Intelligence Unit (2012), 83% of Americans who own a smartphone or tablet are registered to vote. Covid-19 has caused economic activity to decline in several leading markets of the world, including the western and the Asian markets. This new gimmick is called “m-campaigning” […] Order now. Sign in. The number of smartphone users in 2019 in the US was above 260 million, according to Statista. However, the pandemic has also grown people’s dependence on digital technology and their smartphones. Smartphones are now a part of consumers’ lifestyles. It was also evident in the Huawei ban that governments are now highly aggressive in terms of their control of technology firms whether domestic or foreign. A large number of large-screen smartphones are now available in the market, which people use to visit social media sites as well as for gaming and other forms of entertainment like streaming videos. In several cases, high smartphone use has been associated with psychological harm. Therefore, … Abhijeet has been blogging on educational topics and business research since 2016. Leading brands like Apple, Samsung, and Huawei invest a lot each year in research and development to grow the popularity of their existing models and bring new ones with improved features. Apple being a high-end market player faces competition primarily from Samsung. Smartphone Analysis 1. According to the Economic Intelligence Unit (2012), 83% of Americans who own a smartphone … Overall, while focusing on sustainability helps build a stronger reputation, it also helps strengthen a firm’s competitive advantage by reducing operational costs and improving its social image. Not just Huawei but, Apple and other technology firms were also affected by the higher tariffs which led to higher operational. In the second quarter of 2019, Apple, Samsung, and LG held the largest market shares in the US. These factors play important roles in determining whether a business will succeed or not. According to, $12.1 billion during the first three quarters, Higher publisher revenue and improved user experience with Ezoic. PEST Framework The banking industry affects all countries. Introduction 3. PESTEL ANALYSIS OF SMARTPHONE INDUSTRY There are several factors driving demand in the smartphone industry including changing consumer lifestyles, technological innovation and the proliferation of internet-based services that can be accessed easily through smart devices. Smartphone Industry Analysis: Samsung Galaxy S Series Presented by : Pritom Gogoi 2. The report discusses that fact the smartphone industry has rapidly grown over the last two decades. They are also about to change the way we use computers. Focusing on compliance is vital for operating successfully in various regions around the globe. It is not just Huawei but Big tech in the. A Pestel analysis of the smartphone industry. Consumers are at the center of the picture, and knowing their needs and habits allows firms to create the models that have a stronger appeal for customers. It can also help to grow the IT industry in the private sector. They launched a couple of flagship smartphones … However, demand could slow down or become static since economic performance in China is slowing. PESTLE analysis is also referred to as PESTEL analysis. Take a look at this Pestel analysis for a detailed picture. This PESTLE analysis highlights key factors affecting the banking industry… Take a look at this Pestel analysis for a detailed picture. This detailed PESTEL analysis of Apple examines how Apple Inc. has been dealing with different macro-environmental factors. The smartphone industry relies mainly on technology for growth. Order now. Research has associated excessive smartphone use with an increase in negative attitude as well as anxiety and depression. 5%), France(0. Higher government and regulatory oversight of technology firms have made it evident. During 2018, despite a slight decline in demand for smartphones, it remained strong worldwide. Samsung, Huawei, and Apple remain the leading players in the smartphone industry. Some of the standard rules that affect large and global enterprises include labor laws, product quality laws, environmental laws, and data security and privacy laws. A high focus on research and development is essential for smartphone makers so that they can strengthen their competitive advantage and retain their market share. The United Kingdom plays a very important role in the European mobile market as it accounts for a total of 12.9% market value (Datamonitor 2008). The company went public in 2018 with a … According to counterpoint research, the launch of 5G devices and services as well as strengthening demand in emerging economies like India, Indonesia, and Russia could again drive faster growth in the smartphone industry in 2020. Teens remain stuck to social media and TikTok, which can lead to very high cellphone use and lead to neglect of the remaining aspects of life. Despite that, the smartphone industry has faced one of the worst declines in its history caused mainly by a declining economic activity. According to the Economic Intelligence Unit (2012), 83% of Americans who own a smartphone … Apple has spent around $12.1 billion during the first three quarters of 2019 on research and development, which is more than $1.6 billion compared to its R&D expenses during the same period last year. the 21st century. Improved user experience leads to higher sales and faster growth for a smartphone brand. Smart Phones (Handset) Market in India Mona Swarnakar Date: 28/05/2013 2. However, its share in the, industry is currently very small. Nevertheless, in 2018, Apples share of the global smartphone … The Huawei ban and the China-US trade wars are also a sign that governments and regulatory agencies, are going to play a more significant role in the area of international business. Samsung also focuses heavily on technological innovation to grow sales and market share. It aims to examine the factors that have impacted on the operations of the company over the years. After the slowdown in 2019, when the demand for new handsets declined due to several factors, demand is again expected to grow in 2020. If the economic situation in a market is strong, it will result in higher employment and therefore higher consumer confidence which in turn results in higher sales of products and services. The number of smartphone users globally has grown a lot during recent years. In China, the number of smartphone users in 2019 was around 882 million. The forces that are taken into consideration normally are: the technology available technology & its … Currently, the main competitors of Samsung are the players in the smartphone industry as shown in the diagram below (Ferrell & Hartline, 2010). On the one hand, while the growing influence of tech businesses worldwide is an essential concern for governments, on the other, emerging concerns like consumer privacy and data security have also given rise to the need for higher scrutiny. These figures can be used to highlight countries and regions where economic growth is strong. PESTEL analysis provides great detail about operating challenges Myer Holdings Limited will face in prevalent macro environment other than competitive forces. Apple, Amazon, Google, and Facebook are also facing antitrust probes. Table of Content 1. WhatsApp: +1 917-985-7521. It is why the smartphone companies have dedicated compliance teams that focus upon complying with local laws in the areas where the business operates as well as international laws that influence the firm’s business. Smartphone businesses study these trends to know people’s preferences and bring models to the market which cater more efficiently to people’s needs. This article performs Samsung’s Internal and External Stakeholders analysis within the smartphone industry. However, the growing use of smartphones has also taken a form of addiction among teens and young people. In this industry, technology is not just a major differentiator but also the primary factor driving growth and an important source of competitive advantage for brands. But it’s subservient to many factors, particularly to the government and the economy. In this way, social factors are of core importance in the smartphone industry, and studying them helps businesses produce more appealing models and grow sales. Apple is a technology company engaged in the design, manufacture and marketing of smartphones, tablets and personal computers. Technological factors play a central role in the growth of the smartphone industry. Their focus on sustainability, sustainable sourcing, and manufacturing, as well as sustainable processes, has grown. The number of people travelling to other countries is decreased due to fear of their safety and security, (iata.org, 2011) Furthermore the Strict visa policy and border control as an effort to combat terrorisms has caused in… Course Hero is not sponsored or endorsed by any college or university. Its line of Galaxy smartphones is one of the main competitors of the iPhone. Nokia has launched the new brand of Nokia Lumia 1020 to the US but not in India as it required areas where the purchasing power is high. The condition of the global economy also has a direct impact on the sales of smartphones and revenue of brands like Huawei, Samsung, and Apple. In India, it is the largest manufacturer, with 27.3% market share. For the smartphone brands, it is necessary to comply with these laws to avoid incurring hefty fines inflicted by the government or regulatory agencies. China is a leading market for smartphones. The role of political factors in the context of international business has become increasingly significant in. Apple, Amazon, Google, and Facebook are also facing antitrust probes. For people that are not familiar with PESTEL, it is an acronym for Political, Economic, Social, Technological, Environmental and Legal factors. The role of political factors in the context of international business has become increasingly significant in the 21st century. Apple recently released iPhone 11 and iPhone 11 Pro which come loaded with the A13 Bionic chip. The report investigates the computing capabilities of smartphones, and their ability to support several multimedia applications. 25%) and Austria(0. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. According to the industry research website Gartner, the sales of smartphones to end users declined by more than 20% during the first quarter of 2020. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. The main source of competitive advantage for market-leading brands like Apple, Huawei, Samsung, and LG. Google has entered the smartphone industry with its Pixel smartphone. Our Services. In the smartphone industry as well, the level of regulation and political control are growing higher. Investing in sustainability offers several benefits, including reduced operational costs as well as a better social image. An immediate result of this would be the identification of opportunities and threats that may arise from change in environmental factors and assessment of the attractiveness of the industry … There are several factors in the international market that affect the demand and growth of the smartphone industry including economic and political factors. Leading smartphone brands like Apple and Samsung place a heavy focus on CSR and sustainability to make their products free from risks for the users. The Chinese economy, on the other hand, has seen a decline in performance in 2019. However, not just in its own operations, but the company is also supporting its suppliers to go carbon emissions-free in its operations. The overall sales of items like smartphones still depend to a large extent on the economic situation in a region. How To Market Your Small Business Successfully, What You Need To Know About Marketing for Your New Business. According to. Strengthening demand in the rising economies is expected to drive the smartphone industry towards faster growth in 2020. Companies are investing a lot more than ever in research and development to release new models that are more attractive and loaded with features. Law and legal factors are now of paramount importance in the entire technology industry for successful global operations. There are number of different political factors that are currently affecting the airline industry like: Airline industry has adversely affected by increased security measures especially after 9/11 incidence. Competition Analysis … However, its share in the industry is currently minimal. Smartphone industry pestel analysis  September 3, 2020 November 18, 2019 by Abhijeet Pratap A Pestel analysis of the smartphone industry The global smartphone industry generated around $522 billion in revenues in 2018, despite … How Subway uses social media for attracting and engaging customers. Moreover, the company has restricted the use of harmful substances in the production of Apple products including Mac, iPhone, and iPad. Socio-Cultural Influences Economic Influences Technology Influences Smartphone Industry PEST Analysis Political Influences Apple has been first to introduce new camera flash Fingerprint scanning technology Improved battery life Mobile devices make it easier for bullies to carry Understand the broad macro-environment of Xiaomi and the Chinese smartphone industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE). Smartphone manufacturers 2 Economic environment involves factors that affect the purchasing power of the consumers. Political changes like higher tariffs can affect their supply chains and, Rukmini Devi Institute Of Advanced Studies, Lists of countries by international rankings. One of the key reasons was changing customer lifestyles throughout the globe. Other countries which have a positive GDP are experiencing very slow growth like Germany(0. Governments around the world have made stricter laws related to the environment, and businesses need to focus on sustainability to remain compliant with these laws. Smartphones have become a part of everyday life for many, and their relevance is only growing as prices drop and access to new technology spreads. The trade war between the US, and China is affecting nearly all the large technology firms in the US and China. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Government control and oversight of technology firms, including smartphone brands, grew due to several factors. There are millions of apps on Google Playstore. PESTEL analysis provides great detail about operating challenges T-Mobile US, Inc. will face in prevalent macro environment other than competitive forces. For smartphone companies, such political, and regulatory issues mean reduced sales and loss of revenue. The Huawei ban and the China-US trade wars are also a sign that governments and regulatory agencies are going to play a more significant role in the area of international business. contact: support@notesmatic.com, admin@notesmatic.com, Moreover, smartphone makers are loading them with features so that they can seamlessly integrate into people’s lifestyles. In the smartphone industry, as well, the level of regulation and political control are growing higher. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Myer Holdings Limited if it is situated in unstable political … It is a good sign for the economy since it boosts consumer confidence. He graduated with a Hons. Xiaomi is the 5th largest smartphone manufacturer in the world with a market share of 7.3%. The global smartphone industry generated around $522 billion in revenues in 2018, despite a slight decline in overall demand. Likewise, it also aims to identify the factors that are more … The macro environment of Samsung is mainly understood through PEST analysis as will be evident in this report. Several more tech businesses like Facebook. Economic factors also have a definite impact on international businesses and the economic conditions in key markets affect sales and revenue directly. In this rapidly emerging industry, more and more companies are trying to get a piece of the smartphone pie by capturing a larger market share … China, India, and the United States remain the largest markets for smartphones with the highest number of users. US is also facing similar troubles. the launch of 5G devices and services as well as strengthening demand in emerging economies like India, Indonesia and Russia could again drive faster growth in the smartphone industry in 2020. Consumer privacy, as well as data security, are some of the leading concerns attracting the greatest attention from government agencies. The unemployment rate in the US had been shallow in 2019. The different income tax structures in various regions, as well as the evolving legal framework in the Asian markets and the US, also give rise to troubles for the leading tech firms whose size makes them a frequent target of government action. 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