Pestle analysis of UK mobile industry.The United Kingdom plays a very important role in the European mobile market as it accounts for a total of 12.9% market value
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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). By the end of 2011 the United Kingdom mobile phone market value is estimated to gain a raise of 29.1% since 2006 valuing around $4.4 billion (Datamonitor 2008). The industry boundary could be around the manufacturing and giving the service to the mobile phone as these two complement with each other. MOBILE PHONE SERVICE PROVIDING MANUFACTURING With the increase in the technology there is always a better phone in the market with newer specifications, and because of the attractiveness of the deals the consumers are going for a better mobile all the time even if they don't use all the integrated applications. On the other hand this market is nearing its maturity which is a superior threat for all the service providers and mobile manufacturers as they need to invest in more and more for research and development. The recent data shows that just in the U.K there are 69.7 million active subscribers for the mobile phones in 2006 which are 9.7 million more than the total U.K population (Mintel 2007). This states the popularity of the mobile phones and the usage. Key Determinants of Success: For any industry to be successful there will be some key determinants of success which helps its growth, and when these determinants come together it could a successful one. ...read more.
And if we take the rate of technology growth from then to now and the price factor into consideration it could have definitely gone higher by now. Social: Social factors have a very large impact on the industry. The demand levels of the products and the sales are continuously affected by the attitudes and beliefs of the consumers. In addition people have mobile phones not just for communication it also adds peace of mind for the people who care, a lot of people have them as to organise their lives either in a social context or a business context there by making most of their time, and a majority of consumers carry for personal safety. People would like to have mobile phones as they carry them any where they want. It also provides more convenient access to other services like banking, working etc. It also improves social networking as we tend to communicate more by talking rather than just sending e-mails. Usefulness of External Environment Analysis: Any firm within the industry can increase its chances of competitiveness by doing an external environmental analysis. The managers need to use the information gained by the external environmental analysis for future planning, strategy formulation by making the environment ready for any positive changes and thereby keeping away from the negative ones and better decision making as the external environment is changing continuously. ...read more.
* National Radiological Protection Board (NRPB) suggested that there is no evidence of the health problems concerning the usage of mobile phones. But it did warn that we need some precautionary measures due to the high usage of the mobile phones in the near future. Social factors: * The society is very much concerned with the mobile usage by under 18s. * It feels that they can be contacted by unknown persons who can be threat to them. * At the same time it's like an advantage as the kids can or can be contacted by their elders. * Career attitudes, social behaviour, and life style of consumers affect the industry. * Society is also concerned about the adult content on the mobile phones and violent games. It's good they have the technology but at the same time it should not lead them in a wrong path. Technological factors: * Technology has rapidly increased in context to mobile phone industry. * At the beginning the phones are only used for conversation now they are being used for send and receive text messages, multi media messages, voice mails, and even video calling. * The raise of 3g connectivity has been a great leap for mobile phone industry, as it's the very new and latest of it. * 3g mobile phones will increase the sales revenue of the firm. * Bluetooth technology is another great achievement in regards to the exchange of the information as it can be done wireless anytime anywhere. ...read more.
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