Pestel Analysis of Orange

Topics: Technology, Internet, Innovation Pages: 2 (328 words) Published: November 30, 2008
External Analysis : PESTEL

a) Technological
To explain the technological aspect, we have to point out the fact that consumers face now more and more technologies and frequent innovations. As a matter o fact, after launching the 3G innovation, groups as Orange launched the EDGE revolution. Indeed, the 3G is characterized by a technology’s standard of mobile phone that is accessible to consumers since 2002. Thus, the EDGE revolution permits to complete the 3G innovation in 2005. The debit can reach 384 Kbit/s: this innovation has a real impact on the strategy of Orange and other companies who want to use new technologies to obtain new market shares.

b) Social
Concerning the social aspect, we know that now more and more people consume new technology products. Internet has become a real working tool; people use Internet at home, at work…We can’t help using Internet! We have also to underline the frequent use of telecommunication in the professional and private sphere. Moreover, the firms are searching for secure and reliable information systems. This increasing need can be explained by the fact that these companies want to be more profitable to face fierce competition. Finally, not only do the professionals but also private individuals need to communicate quickly.

c) Economical
For the economical aspect, the shares owned by the State in France Telecom (Orange’s subsidiary) represent 27.4%. So the state can be really considered as a great economic support. We have also to point out the presence in Europe of new telecommunication thanks to the freedom of circulation. In other words, it is the emergence of new countries: Eastern countries start to develop on this market.

d) Political
Concerning the political context, we have to underline that France telecom was a public firm. Then, this group was clearly opened to fierce competition on January, 1rst 1998. It develops now the services under the brand Orange. In fact, France Telecom has repurchased...
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