Mobile Industry Analysis

This assignment delves into an analysis of the UK's mobile industry. It employs two key analytical frameworks: PESTLE and Porter's Five Forces. The PESTLE analysis evaluates external environmental factors influencing the industry, such as political, economic, social, technological, legal, and environmental aspects. Porter's Five Forces model examines competition within the industry by considering threats from new entrants, substitutes, bargaining power of buyers and suppliers, and the overall competitive rivalry. The assignment explores these forces to understand the challenges and opportunities facing businesses in the UK mobile market.

Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1 (CESIM GLOBAL CHALLENGE)..................................................................................1
1.1 The mobile phone market (Internal and external environmental factors' analysis)..............1
1.2 Sources of Competitive advantages......................................................................................8
1.3 Critical analysis of outsourcing and manufacturing............................................................11
1.4 Recommendations...............................................................................................................13
PART 2 (STAKEHOLDER SUMMARY)....................................................................................13
2.1 Stakeholder Analysis (Report)............................................................................................13
2.2 Critical Evaluation on performance of IKEA to identify interest of stakeholders..............16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Strategy consists of planning and scheduling to be followed on for organisation's
effectiveness and creating improvement in its services. Therefore, a systematic plan is made
through analysing all factors and making decisions regarding business operations. The present
report is based on understanding cesim global challenges for mobile industry of UK using
analytical factors including internal and external. However, competitive advantages and
outsourcing manufacturing is to be described. In addition to this, recommendations for
improving services provided by mobile industry can be expressed. Apart from this, stakeholder
summary is to be presented for IKEA company works in furniture industry. Thus, students are
able to understand different aspects of strategy as well its significance for effectiveness and
development through this report.
PART 1 (CESIM GLOBAL CHALLENGE)
Cesim global challenge is international business strategy game in which different
countries' market position as well competitive strategies are evaluated. However, comparison
between two or more companies belong to a specific industry is gained that lead to prepare
strategies for improvements effectively. In this regard, performance of competitive entities of
mobile industry is to be presented that affects further operations and profitability. In this reagrd,
differences of production, market share of 4 different entities can be understood as below:
1.1 The mobile phone market (Internal and external environmental factors' analysis)
Internal environmental factors' analysis:
In current era, telecommunication industry and its services are getting developed at high
level. In order to this, demand for mobile phones and computer equipment is increasing on large
scale. It influences its productivity and profitability that generates competitive strategies of entity
as well their environmental factors impact on business operations. In this regard, comparison of
for five organisations as red, green, blue, orange and grey can be interpreted as below in mobile
industry in accordance to their market shares as:
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Interpretation: It is analysed that market share of red is the high in comparison to other
companies as 28.3%. Similarly, global market share by team's structure shows that market share
of other entities as blue, orange, grey and green are 23.97%, 10.45%, 20.16% and 17.12%
respectively. However, for mobile industry of UK, these companies has contributed these shares
that affects nation's effectiveness and other factors. However, as per this interpretation, it can be
forecast that in sales revenue and profitability of red firm would be increased effectively.
External environmental factors
These are those environmental factors which remains uncontrollable but affects business
operations and profitability of organisation. It involves determinants like; political, economic,
socio-economic, technological and so on. For analysing impact of external environmental factors
on mobile industry in terms of five coloured firms as red, orange, grey, green and blue can be
understood as follows:
PESTLE analysis:
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It consists of political, economic, social, technological, legal and environmental which
remains beyond control. However, all of these factors impact on different coloured firms can be
understood as follows:
Political environmental factor: It involves income tax rate, foreign exchange and other
rates that affects political environment of any country. It presents country's effectiveness and
competitive strategy to sustain in international market. However, for analysing political
environment in mobile industry efficiencies of countries like USA, Asia, Europe can be
presented in global market. It can be recognised and interpreted as below:
Economic environmental factor: In this environmental factor, economy as sales
revenue and profitability of entity is analysed in mobile industry of UK. It shows market position
and customers' satisfaction towards services provided by entities. In this regard, five coloured
entities as red, green, blue, grey and orange are to be identified in context to mobile industry.
Besides this, sales revenues of these entities can be identified as that affects profitability and
market sustainability:
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Interpretation: It is recognised that red coloured entity's sale revenue is above RM 3.2
million which is good in comparison to other coloured organisations. It is also determined that
demand of services from this entity is quite effective it provides proper satisfaction to service
users. Apart this, by identifying other entities sales revenue, it is gained as grey, green, blue and
orange are in order after red coloured firm. Therefore, for effective marketing and sustainability
in global market, it is required for entities to increase their productivity and competitiveness
effectively.
Social factor: This environmental factor shows social trend and interest of country's
people towards purchasing mobile. It depends on their earning level and attitude for buying
mobile and taking its services. As per analysis, it is identified that due to less economic level and
earning capacity, country's people has not purchased mobile. Therefore, social environmental
factor in mobile industry is quite less than other countries. Therefore, it is required to setting
price of mobile according to their earning level and improving other sectors therefore effective
demand for telecommunication services would be increased on large scale.
Technological environmental factor: Changes in technology for producing services
varies time to time. Therefore, it is recognised that in telecommunication sector also adoption of
new technologies affect profitability and market sustainability. It impacts on satisfaction level of
customers and demand for its services. In this regard, technological environmental factors'
impact on five coloured entities can understand as below:
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Interpretation: As red coloured firm has strong financial position also able to sustain its
good position in global market, it is able to adopt high quality machinery items for providing
better services to customers at high level. In order to this, in technological shares, it has shared
1,39.41% of shares as well share of green coloured firm is 4,14.61%. Therefore, it is recognised
that because of creating innovations and accepting new technological changes, red coloured firm
got succeed to satisfy customers from different countries at maximum level. Thus, mobile
industry of country get influenced positively that impacts on profitability and competitiveness to
sustain market position as well customers' attraction towards services of entity.
Legal environmental factors: It includes rules and regulations for providing services of
telecommunication to a million customers of the globe. For this purpose, government of the
country prepares policy consists of different provisions regarding business operations and
protection for collaborative. In order to this, for internation trade and exchanging services,
various rules are made for organisations to be followed on in context of customer grievances as
well. Therefore, it is observed that legal environmental factors are effective for
telecommunication industry of UK. Therefore, market structure is quite well protection towards
services are also impressive. Thus, legal environmental factors are in favour of
telecommunication industry of the country that impacts business operations with global market
efficiently.
Environmental factors: These are uncontrollable factors which cannot handle over. It
occurs due to sudden changes that affects atmosphere such as natural calamities and so on.
However, due to changes in these determinants, business operations get influenced entirely as
well organisation has to face many losses related for competitiveness and market sustainability.
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Thus, by analysing environmental factors, it is recognised that there are fewer obstacles occurred
in country regarding mobile industry. However, that changes could not able to influence on
mobile industry of nation. Thus, in terms of analysing environmental factors, it is obtained that
mobile industry of nation is quite good that affects other sectors of the nation.
Porters' five forces analysis: It is analysis of competition level of any entity to sustain its
position in market as well its competitive strength is also analysed through this tool. In
accordance to this, five forces are involved like threat of entrants, threat of substitution,
bargaining power of buyers and so on. However, it is external environmental factor which
remains beyond control but generates idea for facing competition and maintaining its position in
market. In mobile and telecommunication industry of UK, five coloured entities' competences
are to be analysed by understanding following aspects as:
Threat of entrants: In current time, there is number of innovations and new entreats of
mobile as well services are increasing at high level specifically in telecommunication sector of
the country. However, there is always threat of new products and services that attract customers
at higher level. It increases competitiveness also in global market. Therefore, it remains risky for
sustaining position in market in terms of mobile industry.
Threat of substitutes: It is considered that mobile industry and telecommunication
services of different countries is getting enhanced at higher level. For example; innovation form
Asia, Europe, USA in better quality services impact on substitution as well competences in
mobile industry. Therefore, it remains risky for substitution of product services in mobile
industry globally.
Bargaining power of buyers:It is presented by analysing product price per technology.
In this regard, comparison of country's performance with other nations is created by which
different ideas are generated for improving telecommunication industry. It can be analysed
through following presentations regarding competitiveness and other countries' performances as:
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It is recognised that bargaining power of buyers is quite high in mobile industry and
international trade with other countries. In this regard, business operations with other countries
are analysed such as grey coloured entity is less influenced in comparison to others. Similarly,
orange firm is highly influenced regarding product price per technology terms in business
operations for Asia and Europe. Therefore, it is required for orange coloured firm to improve its
services and providing services according to international market and customer interests.
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