Pestle analysis of UK mobile industry

The get together Kingdom plays a truly important role in the European nomadic grocery store as it accounts for a total of 12.9% market value (Datamonitor 2008). By the end of 2011 the United Kingdom supple peal market value is estimated to gain a raise of 29.1% since 2006 valuing about $4.4 one thousand million (Datamonitor 2008). The industry boundary could be around the manufacturing and giving the returns to the wandering recollect as these two musical accompaniment with individu entirelyy former(a).MOBILE PHONE SERVICE PROVIDINGMANUFACTURINGWith the increase in the applied science thither is always a better phone in the market with newer specifications, and because of the attractiveness of the deals the consumers argon going for a better wide awake whole the time heretofore if they dont use every the integrated applications. On the separate hand this market is nearing its maturity which is a superior threat for alone the service providers and smooth manufactu rers as they pauperisation to invest in to a gravider extent(prenominal) and more for research and development. The recent data shows that just in the U.K in that respect atomic number 18 69.7 gazillion active subscribers for the bustling phones in 2006 which atomic number 18 9.7 million more than the total U.K population (Mintel 2007). This states the popularity of the agile phones and the wont.Key Determinants of SuccessFor whatever industry to be successful there will be round key determinants of success which helps its growth, and when these determinants come together it could a successful one. And these determinants for the mobile phone manufacturing and service industry could be the Technological, Economical and Social factors. These could be the three main determinants of this industry mainly because all of these complement each other, as the better the technology in a mobile phone the high uper the monetary value will be. Even at a high price consumers would te nd to buy these phones as for they are getting the modish technology in their hands and thereby they basis show external their status.TechnologyIn this 21st century the technology is booming and all the companies in whatever kind of industry would like to use the in the raw edge technology for their products or services. As the more technology apply in any firm would determine its market capture, its consumers, mainly the price of their products or services. In the mobile phone manufacturing the technology is rapidly increasing. Its evenly important for the manufacturer to produce high quality for the consumer as in the past mobile phones are only used to talk to the other person, now with the growth in the technology consumers go off send and gather up textbook messages, they can check their e-mails, take pictures with integrated camera of up to 8 mega pixels, and most wonderfully consumers can video chat.All of these pardon the technological growth and consumers do pa y higher prices to enjoy and scram this kind of technology in their palms. The manufacturers on the other hand are not just providing mobile phones which can do only these things they are to a fault incorporating other things such as touch screen, Bluetooth and infrared connectivity, tuner local area network (WLAN) which the consumers can use for wireless connectivity (internet), observance live TV, mp3 player, and for all these the consumer thinks it is worth paying the price either commit by the manufacturer or the service provider.EconomyThe U.K mobile phone industry plays a quite a very important role in the economy of the country. The U.K mobile market has generated a total revenue of $3.4 billion in 2006 (Datamonitor 2008) As its been forecasted that the U.K economy to grow between 2.4% to 2.6% between 2007 and 2011 (Key origin 2007), but oer this very small percentage raise over 5 year period, the consumers are going to lose confidence in the economy but at the very(p renominal) time as the mobile phones are a very essential part of their twenty-four hour period to day lives it tends to survive. The mobile penetration rate is also so high that hardly a(prenominal) consumers fork up more than one phone, or more than one dilute or connections and thereby increasing their expenditure.At the same(p) time the mobile phone industry contributes to the economy by importing a standoff of raw materials to be used in the production or manufacturing and also exporting the end products. It also contributes to the economy by increasing the habit rate, the more outlets or offices it opens by creating a series of distributors and retailers the more the more the employment rate will be. If the mobile industry has to go into recession, it has been estimated in 2004 that the total revenue the government could lose could add up to a total of around 9,864 million (O2 2004). And if we take the rate of technology growth from then to now and the price factor into consideration it could have decidedly gone higher by now.SocialSocial factors have a very large impact on the industry. The demand levels of the products and the sales are continuously prompted by the attitudes and beliefs of the consumers. In addition people have mobile phones not just for communication it also adds peace of thought for the people who care, a lot of people have them as to raise their lives either in a complaisant context or a business context there by qualification 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 entranceway 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 surroun dingsal 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. By doing this kind of analysis there is every opportunity for the firm to get its resources ready for the kind of strategy they want to develop. Managers need to keep examining the external environment as it is very dynamic as market conditions change day to day, technology is growing, and there is a first moment for them to know who their competitors are.AppendixFor external environment analysis the tool which any kind of industry or firm to use is PESTEL analysis which we can be elaborated as followsPolitical and efficacious, Environmental, Ecological, Social and Technology.Political and Legal factors* Any kind of industry or firm need to spew to som e rules and regulations.* Trade restrictions and changes in the tax structure will happen upon the industry.* OFCOM- Office of Communications is an independent regulatory body for the Communications Industry. It checks that all the firms within the industry adhere to the regulations.* All firms need to stick to the road map levels of the radiation to which anyone can be exposed, which is set by The International committal on Non-Ionizing Radiation Protection (ICNIRP). Thereby they need to set up more base stations (which send and receive signals to connect to mobile phones).* From 2003 the Road Safety act does not permit any device driver to handle the hands free set to either call, send or receive text, or access internet. If anyone opposes the law there is a ticket of up to 30. In February 2007, they increased the penalty from 30 to 60 as they need to be tougher and to make driving safer. This decreases the usage of the mobile phones.* The consumer defense act* European Regula tors Group (ERG) is the body appointed to investigate into the prices the service providers are charging for mobile phone usage while abroad. It tends to bring these prices tear down in favour to the consumers.Economical factors* The growth or fall of the economy can impact on the industry, as if the economy falls there wont be any new consumers willing to take contracts.* At the same time the growth of the industry contributes a lot to the economyo It provides a lot of employmento It generates revenue for the economy thereby contributing to the GDP.o It contributes to the export and import of raw materials and end products respectively.* The other important factors which affect the industry are exchange rates, rise or fall in the inflation, and minimum wages.Environmental factors* There is no decisive proof that the usage of mobile phones affects the wellness of the consumers.* The use of mobile phones in cars can cause accidents.* At the same time there are issues still concerni ng that even if using mobile phones does not affect the health in a short term, it might in a colossal term.* There are claims that it affects the brain cells, human DNA, immune system, and might even develop cancer due to the radiations.* National Radiological Protection panel (NRPB) suggested that there is no evidence of the health problems concerning the usage of mobile phones. only when 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(prenominal) 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 its 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. Its good they have the technolog y but at the same time it should not lead them in a wrongly path.Technological factors* Technology has rapidly increased in context to mobile phone industry.* At the beginning the phones are only used for conference 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 take a hop for mobile phone industry, as its 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.