Pestel Analysis of Mobile Phones

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PESTEL Analysis

PESTEL analysis stands for "Political, Economic, Social, Technological, Environmental, and Legal analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

Political

The mobile phone industry used to be a monopoly held by BT; however this was de-regulated in 1984 due to the telecommunications act. The current industry regulator is the telecomm regulator Ofcom. This was created to allow there to be fair competition. The mobile phone industry in the UK is one of the most competitive ones in Europe. It has introduced a voluntary code of practise for marketing and selling mobile phone contracts. However due to the large number of customer complaints regarding contracts, the regulator threatened to introduce mandatory rules. This has had the effect of mobile phone providers ensuring that any third party operators or dealers that they deal with do not offer immoral deals to customers.

Another political factor is the introduction of a new technology called Fuel cells. Fuel cells are a source of battery power that refill like a lighter and contain methanol. The advantage of fuel cells is that they allow longer talk and standby times and increased power for power-hungry applications such as video. However there are some limitations of fuel cells. One of which is the flight restrictions. If one wanted to travel via airplane they would have to conduct to the aircraft regulations and laws that restrict the on-board carry of methanol, which is flammable, without special packaging. This could present people with an inconvenience, especially with the new technology of flight mode with mobile phones, not to mention the time consumption after the flight in collecting your mobile phone. On the other hand there are not many airlines that allow mobile phones to be switched on even with the flight mode feature, which to an extent could eliminate the inconvenience. In addition fuel cells could be key technology in the future as the world strives to become greener as we look for cleaner energy technologies.

No mobile phone company have actually used this source of battery power in their phones, however Nokia research in depth but decided to not follow through due to some limitations. Mr Naskali, research manager at Nokia Japan, said several issues with the technology had dented the firm's enthusiasm and the firm had not abandoned the technology, saying: "Fuel-cell technology is promising and Nokia continues to follow it closely." (BBC news 2005 Nokia halts mobile fuel cell plan).

Hitachi and Toshiba have produced prototypes for fuel cells - “As well as showing its prototype fuel cell for PDAs that it announced last December, Hitachi also unveiled a prototype laptop PC fuel cell and a fuel cell-based battery recharger for mobile phones, both of which will be available in 2006, according to the company.” (PC World, Mobile Phone Fuel Cells Coming in 2007, Mobile Phone Fuel Cells Coming in 2007) In the future if our organisation keeps a very close eye on this technology and research in depth to analysis its productivity, we could then implement fuel cells, giving us another unique-selling-point which could result in a competitive advantage.

Recently there had been increased pressure to reduce the cost of making calls from the consumers and agencies, such as the European Commission. This is a factor we must take into consideration, especially on deciding which network to launch our phone on. We may decide to launch our product on Vodafone or 3 since they have recently removed roaming charges, therefore will be more appealing to the consumer making our product more attractive as a whole.

Economic

The UK has been in recession for some time now which is not the most suitable environment to conduct business. Economic downturn directly affects consumer spending and the common fall in telecommunications affects mobile phone providers...
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