pestel analysis of smartphone industry

Not just Huawei but Apple and other technology firms were also affected by the higher tariffs which led to higher operational costs for businesses operating in China. These figures can be used to highlight countries and regions where economic growth is strong. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. However, demand could slow down or become static since economic performance in China is slowing. China, India, and the United States remain the largest markets for smartphones with the highest number of users. Investing in sustainability offers several benefits, including reduced operational costs as well as a better social image. Apple being a high-end market player faces competition primarily from Samsung. One of the key reasons was changing customer lifestyles throughout the globe. How Subway uses social media for attracting and engaging customers. Pestel Analysis of Mobile Phone Industry Political Mobile phones have now become a tool with which political parties can directly target voters. Nevertheless, in 2018, Apples share of the global smartphone … This chip provides higher performance and better processing speed. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Moreover, the environmental impact of businesses also has a direct effect on their image in the society. China, India, and the United States remain the largest markets for smartphones with the highest number of users. However, the pandemic has also grown people’s dependence on digital technology and their smartphones. Industrywide the impact of businesses on the environment and community has become a significant concern. Google has also primarily relied on technological innovation to differentiate its Pixel smartphone from the other leading brands in the market. Likewise, it also aims to identify the factors that are more … PESTLE analysis is also referred to as PESTEL analysis. 5%), France(0. 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. 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. 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. WhatsApp: +1 917-985-7521. 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 … The situation of the world economy or significant local economies affects both demand and sales. For the smartphone brands, it is necessary to comply with these laws to avoid incurring hefty fines inflicted by the government or regulatory agencies. 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 PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Course Hero is not sponsored or endorsed by any college or university. 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 … The Chinese economy, on the other hand, has seen a decline in performance in 2019. While there was a sharp increase in the number of people sticking to their smartphones watching Netflix or engaging on social media, the smartphone industry also experienced less decline in demand as compared to several others like the automobile industry and the aviation industry. In the future, political factors might have a larger role in shaping the, smartphone industry. According to the Economic Intelligence Unit (2012), 83% of Americans who own a smartphone … Apple, Amazon, Google, and Facebook are also facing antitrust probes. 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. Use our swot analysis example to gain an overall understanding of Xiaomi's strengths and weaknesses and strategic options … Competition in the smartphone industry has kept growing intense which has led to higher focus upon quality and user experience. 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. China is a leading market for smartphones. 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. The macro environment of Samsung is mainly understood through PEST analysis as will be evident in this report. Strong economic conditions in key markets mean stronger demand and higher sales. 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. It is a good sign for the economy since it boosts consumer confidence. It can also help to grow the IT industry in the private sector. Abhijeet has been blogging on educational topics and business research since 2016. Its line of Galaxy smartphones is one of the main competitors of the iPhone. We will further discuss the purpose of this market analysis in the next section. Order now. 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. However, its share in the, industry is currently very small. About Us; How It Works; Pricing; Samples; Contact Us; WhatsApp: +1 917-985-7521. Apple is a technology company engaged in the design, manufacture and marketing of smartphones, tablets and personal computers. You've reached the end of your free preview. Therefore, … Focusing on compliance is vital for operating successfully in various regions around the globe. 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 – … Smartphone Industry Analysis: Samsung Galaxy S Series Presented by : Pritom Gogoi 2. Currently, the main competitors of Samsung are the players in the smartphone industry as shown in the diagram below (Ferrell & Hartline, 2010). Political environment- It consists of laws, government urgencies, … The overall sales of items like smartphones still depend to a large extent on the economic situation in a region. Sommaire Technologique : -similarité entre les produits -démarquation distincte -valeur : caractéritique techniques et design For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for T-Mobile US, Inc. if it is situated in unstable political environment. China, India, and the United States remain the largest markets for smartphones with the highest number of users. Apple’s sales, on the other hand, grew stronger following the release of the iPhone 11. Patent laws and some other laws also affect smartphone firms. There are several factors in the international market that affect the demand and growth of the smartphone industry including economic and political factors. Take a look at this Pestel analysis for a detailed picture. For example, some of the main focus areas for Apple, a leading smartphone maker in the area of sustainability include 100% reliance on renewable energy sources as well as water conservation, recycling, and the use of environmentally safer raw material for the production of smartphones. Moreover, the company has restricted the use of harmful substances in the production of Apple products including Mac, iPhone, and iPad. The smartphone industry will suffer in Europe due to these figures and sales growth will be slowed significantly. Global Smartphone Market 4. 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. It is why companies are now growing conscious of their environmental impact. According to the Economic Intelligence Unit (2012), 83% of Americans who own a smartphone … In 2018, while the demand for smartphones declined by almost 3% compared to the previous year, sales were still strong at 1.44 billion units. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers. Several more tech businesses like Facebook. With time, competition among the leading players has grown a lot. 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. Consumer privacy, as, well as data security, are some of the leading concerns attracting the highest attention from government, agencies. However, the growing use of smartphones has also taken a form of addiction among teens and young people. 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. The company is also making big strides in AI technology, with its AI assistant being shortlisted for the SAIL award. Not just Huawei but, Apple and other technology firms were also affected by the higher tariffs which led to higher operational. This new gimmick is called “m-campaigning” […] Order now. Executive Summary 2. The smartphone industry is experiencing intense competition, and maintaining market share requires more focus on technology than ever. PESTLE Analysis for the Banking Industry. PESTEL analysis provides great detail about operating challenges Myer Holdings Limited will face in prevalent macro environment other than competitive forces. 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. Moreover, the role of digital technology and smartphones in the lives of people has kept growing. Apple, among other leading technology firms in the US, faced an antitrust probe. Let us start the Xiaomi PESTLE Analysis: Political Factors: The political factors in the Xiaomi PESTLE Analysis can be explained as follows: Xiaomi tried to gain back its strong position in their mainland that is China. In many cases, young people do not even know when to put their cellphones away. A large number of emerging concerns in the last decade have made governments, around the world acquire an aggressive position with regard to tech regulation. Covid-19 has caused economic activity to decline in several leading markets of the world, including the western and the Asian markets. 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). 2%). Google has entered the smartphone industry with its Pixel smartphone. In the smartphone industry, social trends are also playing a pivotal role in driving demand. Introduction 3. In the second quarter of 2019, Apple, Samsung, and LG held the largest market shares in the US. This preview shows page 1 - 2 out of 4 pages. In the smartphone industry, as well, the level of regulation and political control are growing higher. Economic factors also have a definite impact on international businesses and the economic conditions in key markets affect sales and revenue directly. Smartphones have ushered in a new generation of modern communication. 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. SWOT L’analyse SWOT : méthode ou outil d’analyse stratégique de l’entreprise pouvant être utilisé dans le marketing pour une entreprise ou un produit. The political situation in any country can affect the business of IT industry. PESTEL analysis provides great detail about operating challenges T-Mobile US, Inc. will face in prevalent macro environment other than competitive forces. Smartphone analysis 1. industry including economic and political factors. People with smartphones can now receive video advertisements and messages via the internet. There are, several factors in the international market that affect the demand and growth of the smartphone. 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 Higher government and regulatory oversight of technology firms have made it evident. While the relationship between cellphone addiction and psychological problems may not be apparent, still overuse can be problematic in other ways. The report investigates the computing capabilities of smartphones, and their ability to support several multimedia applications. Samsung has also kept increasing its investment in R&D over the past several years. He graduated with a Hons. The role of political factors in the context of international business has become increasingly significant in the 21st century. Smart Phones (Handset) Market in India Mona Swarnakar Date: 28/05/2013 2. Table of Content 1. After the slowdown in 2019, when the demand for new handsets declined, due to several factors, demand is again expected to grow in 2020. They are also about to change the way we use computers. Higher government and regulatory oversight of technology firms have made it evident. The uniqueness in its design gives the company a competitive advantage which … How To Market Your Small Business Successfully, What You Need To Know About Marketing for Your New Business. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis … 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. The forces that are taken into consideration normally are: the technology available technology & its … In India, it is the largest manufacturer, with 27.3% market share. PEST Framework A Pestel analysis of the smartphone industry. Take a look at this Pestel analysis for a detailed picture. But it’s subservient to many factors, particularly to the government and the economy. The global smartphone industry generated around $522 billion in revenues in 2018, despite a slight decline in overall demand. SMARTPHONE MARKET • The worldwide smartphone market grew 25.3% year over year in the second quarter of 2014 (2014Q2).1 • Total mobile phone shipments in 2013 reached 1.83 billion units globally, a year-on-year increase of 6 percent from 1.73 billion units in 2012.2 • Smartphone … The result was that the iPhone 11 attracted very high sales. Consumer privacy, as well as data security, are some of the leading concerns attracting the greatest attention from government agencies. Pestel Analysis of Mobile Phone Industry Political Mobile phones have now become a tool with which political parties can directly target voters. The banking industry affects all countries. Smartphones are now a part of consumers’ lifestyles. So, technology has become a core focus for smartphone makers since innovation is essential for growth in sales and market share. 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. After the slowdown in 2019, when the demand for new handsets declined due to several factors, demand is again expected to grow in 2020. Samsung, Huawei, and Apple remain the leading players in the smartphone industry. However, its share in the industry is currently minimal. In 2018, while the demand for smartphones … Smartphone manufacturers 2 Economic environment involves factors that affect the purchasing power of the consumers. 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. A Pestel analysis of the smartphone industry. Banks are unable to behave independently and must provide services based on specific laws that affect their growth and offerings. The government forms rules and regulations for the IT industry and make the policies to introduce the IT industry in different departments of the government. 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. By the end of 2011 the United Kingdom mobile phone market value is estimated to gain a raise of 29.1% since 2006 valuing … However, the number of smartphone users continues to grow around the world, and companies are investing more in researching people’s habits and preferences. The supply chains of companies like Apple and Samsung are spread over several countries throughout the globe. 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. Thus significantly impacting the ability of Byju's App to build … Our Services. PESTEL analysis of Apple. In a tax-related case in the EU, Apple paid around $15 billion. Competition Analysis … In order to make a complete analysis of the environment of how the smartphone industry operates we need to evaluate those forces that work in it as well as seeing how the forces share its competitive environment. 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. The chosen market for this market analysis example is the smartphone industry. 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). Several more tech businesses like Facebook and Google have also faced significant problems in overseas markets caused mainly by regulatory issues. 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. It makes the new iPhone highly attractive for gamers and professionals. Government agencies have also tightened the regulations related to the environment. 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… In the future, political factors might have a larger role in shaping the smartphone industry. This report examines the global smartphone market, which has become highly fragmented into high-end and low-end players. Sign in. The GDP growth rate of China during the third quarter of 2019 was the slowest since the first quarter of 1992. 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 … In China, the number of smartphone users in 2019 was around 882 million. 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… By 2018, the company had achieved 100% use of renewable energy in its facilities globally. It is not just Huawei but Big tech in the US is also facing similar troubles. Political changes like higher tariffs can affect their supply chains and manufacturing network and drive operational costs higher. During 2018, despite a slight decline in demand for smartphones, it remained strong worldwide. The result was that it gained market share in the United States market. The tool I am going to use to analyse the business environment in Nigeria is PESTEL Analysis. These factors play important roles in determining whether a business will succeed or not. Companies are investing a lot more than ever in research and development to release new models that are more attractive and loaded with features. Other countries which have a positive GDP are experiencing very slow growth like Germany(0. The role of political factors in the context of international business has become increasingly significant in. Research has associated excessive smartphone use with an increase in negative attitude as well as anxiety and depression. Google has entered the smartphone industry with its Pixel smartphone. It aims to examine the factors that have impacted on the operations of the company over the years. However, not just in its own operations, but the company is also supporting its suppliers to go carbon emissions-free in its operations. and Google have also faced significant problems in overseas markets caused mainly by regulatory issues. The number of smartphone users in 2019 in the US was above 260 million, according to Statista. In 2018, the company spent 18.7 Trillion KRW on R&D  compared to 16.8 Trillion KRW. Pestle analysis of UK mobile industry. The global smartphone industry generated around $522 billion in revenues in 2018, despite a slight decline in overall demand. ’ lifestyles business of the leading players has grown a lot more than ever players grown... 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