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Indian Smart Phone Market Overview and Size Key Drivers Challenges Trends PESTEL analysis Porter's Five forces analysis 4. Thus significantly impacting the ability of Byju's App to build … It is shown in tables 2,3 and 4 (Appendices) that there is strong economic growth … Political changes like higher tariffs can affect their supply chains and manufacturing network and drive operational costs higher. Smart Phones (Handset) Market in India Mona Swarnakar Date: 28/05/2013 2. However, the growing use of smartphones has also taken a form of addiction among teens and young people. The political situation in any country can affect the business of IT industry. The economic situation has a direct impact on several important factors like employment, poverty and overall purchasing power of consumers. Several more tech businesses like Facebook. The macro environment of Samsung is mainly understood through PEST analysis as will be evident in this report. Smartphones have ushered in a new generation of modern communication. Their focus on sustainability, sustainable sourcing, and manufacturing, as well as sustainable processes, has grown. The chosen market for this market analysis example is the smartphone industry. 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. Moreover, the environmental impact of businesses also has a direct effect on their image in the society. It is not just Huawei but Big tech in the. PESTLE analysis is a … Google has also primarily relied on technological innovation to differentiate its Pixel smartphone from the other leading brands in the market. According to, $12.1 billion during the first three quarters, Higher publisher revenue and improved user experience with Ezoic. 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. The supply chains of companies like Apple and Samsung are spread over several countries throughout the globe. People with smartphones can now receive video advertisements and messages via the internet. Apple is a technology company engaged in the design, manufacture and marketing of smartphones, tablets and personal computers. Research has associated excessive smartphone use with an increase in negative attitude as well as anxiety and depression. The condition of the global economy also has a direct impact on the sales of smartphones and revenue of brands like Huawei, Samsung, and Apple. Despite that, the smartphone industry has faced one of the worst declines in its history caused mainly by a declining economic activity. The company is also making big strides in AI technology, with its AI assistant being shortlisted for the SAIL award. 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. Google has entered the smartphone industry with its Pixel smartphone. Sociocultural factors are now a key consideration in the area of business. The Chinese economy, on the other hand, has seen a decline in performance in 2019. A high focus on research and development is essential for smartphone makers so that they can strengthen their competitive advantage and retain their market share. According to. By 2018, the company had achieved 100% use of renewable energy in its facilities globally. After the slowdown in 2019, when the … PESTEL analysis provides great detail about operating challenges Myer Holdings Limited will face in prevalent macro environment other than competitive forces. Companies are investing a lot more than ever in research and development to release new models that are more attractive and loaded with features. Investing in sustainability offers several benefits, including reduced operational costs as well as a better social image. A Pestel analysis of the smartphone industry. Strong economic conditions in key markets mean stronger demand and higher sales. 2%). 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. Political environment- It consists of laws, government urgencies, … In 2018, the company spent 18.7 Trillion KRW on R&D  compared to 16.8 Trillion KRW. The smartphone industry is experiencing intense competition, and maintaining market share requires more focus on technology than ever. Technological factors play a central role in the growth of the smartphone industry. Its line of Galaxy smartphones is one of the main competitors of the iPhone. This report will critically analyse the external environment of the mobile phone operators industry with the application of appropriate strategy tools including PESTEL and Michael Porter’s five forces models. In many cases, young people do not even know when to put their cellphones away. Consumers are at the center of the picture, and knowing their needs and habits allows firms to create the models that have a stronger appeal for customers. China, India, and the United States remain the largest markets for smartphones with the highest number of users. PESTEL analysis of Apple. The tool I am going to use to analyse the business environment in Nigeria is PESTEL Analysis. Samsung has also kept increasing its investment in R&D over the past several years. In a tax-related case in the EU, Apple paid around $15 billion. The global smartphone industry generated around $522 billion in revenues in 2018, despite a slight decline in overall demand. In the smartphone industry, as well, the level of regulation and political control are growing higher. China, India, and the United States remain the largest markets for smartphones with the highest number of users. The smartphone industry will suffer in Europe due to these figures and sales growth will be slowed significantly. One of the key reasons was changing customer lifestyles throughout the globe. Smartphone businesses study these trends to know people’s preferences and bring models to the market which cater more efficiently to people’s needs. 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. Xiaomi is the 5th largest smartphone manufacturer in the world with a market share of 7.3%. However, its share in the, industry is currently very small. Apple, Amazon, Google, and Facebook are also facing antitrust probes. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers. 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 … 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. However, demand could slow down or become static since economic performance in China is slowing. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Smartphone Analysis 1. Improved user experience leads to higher sales and faster growth for a smartphone brand. Take a look at this Pestel analysis for a detailed picture. PESTLE analysis is also referred to as PESTEL analysis. Abhijeet has been blogging on educational topics and business research since 2016. In the second quarter of 2019, Apple, Samsung, and LG held the largest market shares in the US. and Google have also faced significant problems in overseas markets caused mainly by regulatory issues. Several more tech businesses like Facebook and Google have also faced significant problems in overseas markets caused mainly by regulatory issues. According to the Economic Intelligence Unit (2012), 83% of Americans who own a smartphone … 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. Government control and oversight of technology firms, including smartphone brands, grew due to several factors. The role of political factors in the context of international business has become increasingly significant in the 21st century. Order now. PESTEL analysis provides great detail about operating challenges T-Mobile US, Inc. will face in prevalent macro environment other than competitive forces. 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). US is also facing similar troubles. Apple being a high-end market player faces competition primarily from Samsung. He graduated with a Hons. It aims to examine the factors that have impacted on the operations of the company over the years. During 2018, despite a slight decline in demand for smartphones, it remained strong worldwide. About Us; How It Works; Pricing; Samples; Contact Us; WhatsApp: +1 917-985-7521. 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). But it’s subservient to many factors, particularly to the government and the economy. Moreover, the role of digital technology and smartphones in the lives of people has kept growing. There are, several factors in the international market that affect the demand and growth of the smartphone. There are millions of apps on Google Playstore. This article performs Samsung’s Internal and External Stakeholders analysis within the smartphone industry. WhatsApp: +1 917-985-7521. The trade war between the US, and China is affecting nearly all the large technology firms in the US and China. These factors play important roles in determining whether a business will succeed or not. For people that are not familiar with PESTEL, it is an acronym for Political, Economic, Social, Technological, Environmental and Legal factors. Teens remain stuck to social media and TikTok, which can lead to very high cellphone use and lead to neglect of the remaining aspects of life. Smartphone Industry Analysis: Samsung Galaxy S Series Presented by : Pritom Gogoi 2. A Pestel analysis of the smartphone industry. Apple, among other leading technology firms in the US, faced an antitrust probe. Table of Content 1. 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. Want to read all 2 pages? In the smartphone industry as well, the level of regulation and political control are growing higher. Pest Analysis On Smartphone Industry  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 – … 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. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Myer Holdings Limited if it is situated in unstable political … Executive Summary 2. However, not just in its own operations, but the company is also supporting its suppliers to go carbon emissions-free in its operations. After the slowdown in 2019, when the demand for new handsets declined, due to several factors, demand is again expected to grow in 2020. Pestel Analysis of Mobile Phone Industry Political Mobile phones have now become a tool with which political parties can directly target voters. According to the Economic Intelligence Unit (2012), 83% of Americans who own a smartphone or tablet are registered to vote. Higher government and regulatory oversight of technology firms have made it evident. This PESTLE analysis highlights key factors affecting the banking industry… For smartphone companies, such political, and regulatory issues mean reduced sales and loss of revenue. Apart from manufacturing and sales, the role of digital technology in other areas including marketing and promotions has grown a lot. 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. The global smartphone industry generated around $522 billion in revenues in 2018, despite a slight decline in overall demand. Strengthening demand in the rising economies is expected to drive the smartphone industry towards faster growth in 2020. The situation of the world economy or significant local economies affects both demand and sales. In the case of Huawei, the imposition of the ban resulted in a swift decline in smartphone sales. A large number of large-screen smartphones are now available in the market, which people use to visit social media sites as well as for gaming and other forms of entertainment like streaming videos. In several cases, high smartphone use has been associated with psychological harm. Apple recently released iPhone 11 and iPhone 11 Pro which come loaded with the A13 Bionic chip. The main source of competitive advantage for market-leading brands like Apple, Huawei, Samsung, and LG. 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. In 2018, while the demand for smartphones … For the smartphone brands, it is necessary to comply with these laws to avoid incurring hefty fines inflicted by the government or regulatory agencies. However, the pandemic has also grown people’s dependence on digital technology and their smartphones. China is a leading market for smartphones. PESTLE Analysis for the Banking Industry. The different income tax structures in various regions, as well as the evolving legal framework in the Asian markets and the US, also give rise to troubles for the leading tech firms whose size makes them a frequent target of government action. Higher government and regulatory oversight of technology firms have made it evident. It is why companies are now growing conscious of their environmental impact. The result was that the iPhone 11 attracted very high sales. Course Hero is not sponsored or endorsed by any college or university. The report investigates the computing capabilities of smartphones, and their ability to support several multimedia applications. The banking industry affects all countries. The trade war between the US and China is affecting nearly all the large technology firms in the US and China. Use our swot analysis example to gain an overall understanding of Xiaomi's strengths and weaknesses and strategic options … This detailed PESTEL analysis of Apple examines how Apple Inc. has been dealing with different macro-environmental factors. In the future, political factors might have a larger role in shaping the, smartphone industry. However, its share in the industry is currently minimal. A large number of emerging concerns in the last decade have made governments around the world acquire an aggressive position concerning tech regulation. Nevertheless, in 2018, Apples share of the global smartphone … This preview shows page 1 - 2 out of 4 pages. The report discusses that fact the smartphone industry has rapidly grown over the last two decades. Competition in the smartphone industry has kept growing intense which has led to higher focus upon quality and user experience. 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. They are also about to change the way we use computers. This report examines the global smartphone market, which has become highly fragmented into high-end and low-end players. 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. People with smartphones can now receive video advertisements and messages via the internet. The result was that it gained market share in the United States market. How To Market Your Small Business Successfully, What You Need To Know About Marketing for Your New Business. Competition Analysis … In China, the number of smartphone users in 2019 was around 882 million. 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 … Samsung, Huawei, and Apple remain the leading players in the smartphone industry. Our Services. However, the US ban affected the demand for Huawei phones negatively. Likewise, it also aims to identify the factors that are more … 5%), France(0. In the smartphone industry, social trends are also playing a pivotal role in driving demand. Global Smartphone Market 4. It can also help to grow the IT industry in the private sector. 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. In India, it is the largest manufacturer, with 27.3% market share. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. It is a good sign for the economy since it boosts consumer confidence. External environment – Smartphone industry Smartphones are not only revolutionizing the mobile phone industry. Pestle analysis of UK mobile industry. 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. With time, competition among the leading players has grown a lot. The unemployment rate in the US had been shallow in 2019. On the basis of PESTLE analysis, Apple should be able to thrive in electronic device industry in the next five years in spite of the challenges because it demonstrates an impressive ability to adopt to a challenging environment. Samsung PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. PEST Framework They launched a couple of flagship smartphones … It is not just Huawei but Big tech in the US is also facing similar troubles. The global smartphone industry generated around $522 billion in revenues in 2018, despite a slight decline in overall demand. For smartphone companies, such political and regulatory issues mean reduced sales and loss of revenue. However, there are chances of the ban being relaxed in the near future. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis … Smartphone manufacturers 2 Economic environment involves factors that affect the purchasing power of the consumers. In the case of Huawei, the imposition of ban resulted in a swift decline in smartphone sales. 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 – … The smartphone industry relies mainly on technology for growth. After the slowdown in 2019, when the demand for new handsets declined due to several factors, demand is again expected to grow in 2020. How Subway uses social media for attracting and engaging customers. Economic factors also have a definite impact on international businesses and the economic conditions in key markets affect sales and revenue directly. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. 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… Take a look at this Pestel analysis for a detailed picture. Leading smartphone brands like Apple and Samsung place a heavy focus on CSR and sustainability to make their products free from risks for the users. Consumer privacy, as, well as data security, are some of the leading concerns attracting the highest attention from government, agencies. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Competition is also a significant factor affecting the demand and sales of smartphones. The GDP growth rate of China during the third quarter of 2019 was the slowest since the first quarter of 1992. Government agencies have also tightened the regulations related to the environment. According to the Economic Intelligence Unit (2012), 83% of Americans who own a smartphone … Not just Huawei but, Apple and other technology firms were also affected by the higher tariffs which led to higher operational. Sign in. 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. Smartphone analysis 1. the 21st century. So, technology has become a core focus for smartphone makers since innovation is essential for growth in sales and market share. Patent laws and some other laws also affect smartphone firms. Introduction 3. Banks are unable to behave independently and must provide services based on specific laws that affect their growth and offerings. We will further discuss the purpose of this market analysis in the next section. It makes the new iPhone highly attractive for gamers and professionals. This chip provides higher performance and better processing speed. However, the number of smartphone users continues to grow around the world, and companies are investing more in researching people’s habits and preferences. 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 … 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. 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. Focusing on compliance is vital for operating successfully in various regions around the globe. The role of political factors in the context of international business has become increasingly significant in. Apple, Amazon, Google, and Facebook are also facing antitrust probes. 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 uniqueness in its design gives the company a competitive advantage which … 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. industry including economic and political factors. 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. Sommaire Technologique : -similarité entre les produits -démarquation distincte -valeur : caractéritique techniques et design The supply chains of companies like Apple and Samsung are spread over several countries, throughout the globe. By the end of 2011 the United Kingdom mobile phone market value is estimated to gain a raise of 29.1% since 2006 valuing … 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. Analysis of European Smartphone Market.docx, Institute of Management Studies, Devi Ahilya University, Hazardous Waste Management Market report.docx, 2013, Innovation and Upgrading in GPNs.pdf, Institute of Management Studies, Devi Ahilya University • FINANCE 1234, Institute of Management Studies, Devi Ahilya University • COSTING AN 1, Devi Ahilya Vishwavidyalaya • MANAGEMENT CM1, Janki Devi Memorial College • MANA OPERATIONS. Google has entered the smartphone industry with its Pixel smartphone. While the relationship between cellphone addiction and psychological problems may not be apparent, still overuse can be problematic in other ways. Pestel Analysis of Mobile Phone Industry… The number of smartphone users globally has grown a lot during recent years. In the future, political factors might have a larger role in shaping the smartphone industry. There are several factors in the international market that affect the demand and growth of the smartphone industry including economic and political factors. Pestel Analysis of Mobile Phone Industry Political Mobile phones have now become a tool with which political parties can directly target voters. contact: support@notesmatic.com, admin@notesmatic.com, Moreover, smartphone makers are loading them with features so that they can seamlessly integrate into people’s lifestyles. Covid-19 has caused economic activity to decline in several leading markets of the world, including the western and the Asian markets. 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. 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. You've reached the end of your free preview. Moreover, the company has restricted the use of harmful substances in the production of Apple products including Mac, iPhone, and iPad. Smartphones are now a part of consumers’ lifestyles. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. The forces that are taken into consideration normally are: the technology available technology & its … Currently, rapid transformation is taking place and competition to control the lucrative market has in… Other countries which have a positive GDP are experiencing very slow growth like Germany(0. 25%) and Austria(0. Apple’s sales, on the other hand, grew stronger following the release of the iPhone 11. Samsung also focuses heavily on technological innovation to grow sales and market share. The number of smartphone users in 2019 in the US was above 260 million, according to Statista. These figures can be used to highlight countries and regions where economic growth is strong. 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 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… 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. Therefore, … Nokia has launched the new brand of Nokia Lumia 1020 to the US but not in India as it required areas where the purchasing power is high. 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. Currently, the main competitors of Samsung are the players in the smartphone industry as shown in the diagram below (Ferrell & Hartline, 2010). 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. The overall sales of items like smartphones still depend to a large extent on the economic situation in a region. The company went public in 2018 with a … 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 2020, the situation has only grown worse due to the spread of the pandemic. 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. China, India, and the United States remain the largest markets for smartphones with the highest number of users. This new gimmick is called “m-campaigning” […] Order now. 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. Industrywide the impact of businesses on the environment and community has become a significant concern. Law and legal factors are now of paramount importance in the entire technology industry for successful global operations. Political changes like higher tariffs can affect their supply chains and, Rukmini Devi Institute Of Advanced Studies, Lists of countries by international rankings. And Size key Drivers Challenges Trends PESTEL analysis of the key reasons was changing customer throughout... Of Americans who own a smartphone … smartphone analysis 1 manufacturer, with 27.3 % market share grown people s! Business environment in Nigeria is PESTEL analysis computing capabilities of smartphones in several cases, young people important like! Development to release new models that are more attractive and loaded with features including and... Throughout the globe, smartphone industry is currently very Small US was above 260 million, to... Of political factors might have a larger role in the US ; WhatsApp: +1 917-985-7521 a core for. 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