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Pestel Analysis of Mobile Phones

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Pestel Analysis of Mobile Phones

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  • Feb. 2011
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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...

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