Strategic Analysis: PESTEL Factors Impacting Mobile Industry in UK

This report presents a PESTEL analysis of the mobile industry, focusing on the UK market. It examines the political, economic, social, technological, environmental, and legal factors influencing the sector. The political analysis covers government policies, regulations, and trade controls, highlighting their impact on businesses. Economic factors, including interest rates, inflation, and exchange rates, are assessed for their effects on consumer spending and industry growth. Technological advancements, such as 5G and digitalization, are explored for their role in product innovation and customer service. The report emphasizes the importance of adapting to technological changes and leveraging them for competitive advantage. The analysis also touches upon environmental considerations and legal frameworks, including employment laws and trade policies. The report concludes by underscoring the need for mobile companies to strategically navigate these external factors to ensure sustainable business practices and success within the telecommunications industry. This analysis aims to provide valuable insights for strategic planning and decision-making within the mobile sector.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
Political Factor -..........................................................................................................................1
Economical Factor –...................................................................................................................2
Social factor – ............................................................................................................................2
Technological Factor -................................................................................................................3
Environmental Factor – ..............................................................................................................4
Legal factor – .............................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business strategy is art and science which is used to provide effectiveness in business
organisation. This process is established when a firm set their vision, mission, objectives and
future goals. In this process strategic management take place to established effective planning
and business opportunity for a organisation. This project report is based on mobile industry
which has vast structure in new era (Akter, 2016). It includes external environmental analysis of
mobile industry that determine impact of these factors on working environment. External factors
are find out through PESTEL analysis to gain competitive advantages easily.
PESTEL analysis of Telecommunication industry are given below -
Political Factor -
These factor are related to government policy, norms, legal terms and other procedures.
For mobile industry it is very important to understand all these terms and build effective
cooperation with government to create their own image in market easily. In new generation Wi-
Fi and internet play a most important role in individual's life so for government authorities it is
very important to understand its value as a basic human right. At some places companies also
need to make their policy and up date them according to various changes as political law,
government regulatory and other basic terms that can affect their business procedures. Mobile
telecom industry build various career path for people to understand its values and build their
career with new technology and innovative ideas. Through these kind of ideas and plan
government and economy of a country also get appropriate growth. Sometimes political
environment is negatively interrupt in mobile sector (Alsudiri, Al and Eldabi, 2013). Generally
these risk factor are relate to regulation policies, network licensing and other trade barriers as
well. Political risk is situated in national security and other human issues that are determines as
political force for mobile industry. At that time government needs to understand its value and
importance for people and provides appropriate freedom like other services factors.
After a long time some government initiative and telecom conferences build relation with
government bodies to emerged their services in a country. It is very obvious that government
regulate policies for a business industry to reduce its negative effects on their people but for them
it is necessary to understand its worth also that can be need or demand of individual for surviving
their life. For uses of telecommunication industry are related to internet resources, business
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deals, calling, networking and in other terms that impacts personal ans professional life of a
individual easily. It also includes government norms, policy, legislation and new terms that needs
to be accepted by each and every industry to build their own values.
Furthermore, the political environment of a nation put a huge impact on its business
organisations and sometimes it introduced as a risk factor that could cause them to suffer a loss.
The political environment could change as a result of the actions and policies of governments at
all levels, from the local level to the federal level. Businesses must plan for the variability of
government policy and regulations. Below describe several examples of political environment,
such as-
Tax policy – UK Government has established many regulations and policies that guide
businesses. Some rules, like minimum wage, are mandatory, while other policies may influence
your business indirectly. Businesses need to be flexible enough to respond to changing rules and
policies. This is true not only at the national level but more locally as well, as states and
municipalities have their own sets of rules. Indeed, there are also international treaties that can
influence the way companies do business.
Employment law - While analysing political environment of the nation, it is essential
business organisation to must known about hiring and firing costs. They should also provide job
stability in country in order generate higher per capita income in an effective manner. Along
with this, employment law is a broad area encompassing all areas of the employer/employee
relationship except the negotiation process covered by labour law and collective bargaining.
Trade control policies – British government’s trade policy can affect business by
making it easier or more difficult to trade across international borders. Trade policy can include
the imposition of import tariffs, quotas on imports and exports of certain goods, and subsidies for
local producers to support them against international competition. It will supports to certain
businesses as well as lead to increased competition from abroad.
Economical Factor –
These factors are related to proper impact of a business industry on economy of a
country. Some important element of these factors are known as interest rate, inflation, taxes and
economy growth that directly affected through mobile industry services. In new era number of
mobile phone users are increased as a necessary or demand of each and every person. This term
can directly introduce consumers purchasing power and spending their money in this industry. It
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is a only resource that used to build positive relation and provide effective services at appropriate
timing (Barberá and et. al., 2012). UK is a most respond country in which people want to buy
exact product that has power to fulfil their needs. Thee kind of attitude of people affect working
process of mobile industry that their production and management staff needs to understand exact
cost of their product that helps to attract more customers toward their services.
In new era mobile phone industry landscape their structure to build new feature in their
single product. So through this purchasing power of customers are directly increase and provide
effective growth to economy and specific industry as well. Economical factors are also affected
through inflation that affecting mobile industry directly. It includes a term in which expenses of a
industry are consider on higher level and their income or growth has not increased easily. These
type of terms are known as negative factors that affect market values of a organisation and
reduce economical growth directly. For this mobile industry needs to make exact strategy that
build protraction for those firms and reduce external negative factors easily. Mobile industry and
telecommunication industry build their dependency on each other to get effective income ans
marketing growth as well. Through these kind of things economical growth and effectivenesses
builds in positive manner.
Inflation rates – Inflation has a wide ranging impact including not only on individuals
but also businesses and even countries. Consumers and businesses alike have to deal with the
impact of inflation, both good and bad. Inflation occurs because of a self-reinforcing cycle of
rising prices. Workers in a company assume all prices are going to rise because of inflation, so
they demand an increase in their salaries.
Interest rate – The economic policy of the country can affected by interest rates; it
means a rise which increases the cost of borrowing in the business community. Higher rates also
lead to decreased consumer spending whereas over interest rates attract investment as businesses
increase production. Businesses do not thrive when there is a high level of inflation.
Exchange rate – It plays an imperative role for firms who exports goods and imports raw
materials. If the business buys any products from another country. The cost of those products
will change if the exchange rate changes; it hinders manufacturing costs of companies.
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Technological Factor -
This factor has direct impact on each and every industry that established in economy.
Through this a firm can easily get higher business advantages easily. Technological factors are
rapidly improve services and products quality to builds own image in market easily. Mobile
industry adopt lots of technology to build quality products in market and attract more customers
easily. Customers in new market want attractive products and effective services that satisfy their
needs and want in easily. In this mobile industry grab innovative ideas and advance technology
to build quality feature in one device. Through this they easily attract more customers toward
their services and advance technological features. Entire mobile industry is based on
technological support and new ideas so this feature and factors are directly affecting on products
quality and manufacturing services as well (Cascio, 2018). Mobile industry world is covered
through information technological services that affect their marketing image and other business
activities. Mobile phone industry first develop telephonic equipments and after some years they
add more features to provide effective services to their customers. After some time mobile
industry is develop new elements as Camera, music, image viewer, android features, email
services, Bluetooth, wireless technology, head phones, word documentation etc.. All these
features helps to build various services for customers to provide them effective services and
appropriate resources easily. Technological equipments and innovative services are majorly
affecting on mobile industry services. Digitalisation is make changes according to 2G, 3G, 4G
and now 5G that is arrives and now want further features in these equipments. These things build
a track between customers and new generation to use ultimate features and supportive things that
make appropriate changes in mental level of individual's. Innovative technology and new ideas
build various opportunity for a specific devices to survive in target market easily. Through this a
specific organisation also create new world for new customers as well. Besides this, every
company whether its a small or large scale company, adoption of latest technology is mandatory
as this will enable company to avail various kind of benefits and will help to attract large n
umber of customers. This will in turn help the company to attain its aims and objectives and that
too in effective and efficient manner. There are various kind of services which can be installed
after the technological advancement like for example, company can install fibre wire in place of
cooper wires. In modern scenario, smartphone are getting most essential part of an individual as
it has ease up various kinds of activities so moving on to the wireless functions has become
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necessary or mandatory for the company. All this has become necessary for the business and in
order to know its actual importance, one step back should be taken and thus seek out for the all
the technology which is being utilised on regular basis (Chang and Graham, 2012). Almost in
every activity, technology plays crucial role and thus helps out in completing the regular
activities. Being a mobile company, this kind of factor is highly needed to be adopted as trend
are changing and people's desires are getting advanced and they mainly look out for everything
at their hand. So company needs to be adopt latest technology on regular basis so that they can
adopt and provide the benefits to the consumers on the products and services which are being
provided. In addition, this also gives platform of opportunities to the company along with
employees for lifting their career and living standards. But there are some of the norms and
protocol which needs to be followed by the mobile company so that they can attain growth and
success. Technology should not be only adopted for the products and services but also within the
workplace so that high performance within employees can be seen and entire tasks and activities
can be conducted in smooth manner. This will enable employees to have better resources which
can be optimum utilised and thus expected outcomes can be obtained (Elhamma and Zhang,
2013). There are several technological sources which can be used by business organisations in
order to gain high competitive edge, such as-
 Business management applications
 Email and office applications or integrated applications
 Customer feedback.
Applications such as User Voice and Get Satisfaction have allowed software developers
to enhance the end user experience based not only on what they think customers need, but also
on what customers say they want. Technology has revolutionized the way companies conduct
business by enabling small businesses to level the playing field with larger organizations. Small
businesses use an array of tech: everything from servers to mobile devices so as to develop
competitive advantages in the economic marketplace. On the other hand, by using effective
database tools, management can take imperative business decisions and grab better future
opportunities,
As per above statement it is very clear that the PEST provides various kind of advantages
to the company and thus helps them to make position within market. This in turn allows
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company to gain competitive advantage and gain the areas in which business can be expanded
along with its area of operations.
CONCLUSION
As per this report it has been summarised that business strategy is a specific activity of
firm that build values of their business activities and its approaches as well. All strategy are build
when a organisation set their vision, mission, objectives ans goals to identify what kind of things
are need to get effective and desired outcomes easily. All these things are helps to build
positivity in working approaches and effectiveness for all activities as well. This project is based
on Mobile industry which has vast structure in a country. This report represent external
environmental factor that affect decision making approach of a organisation. These external
factors are determine through PESTEL analysis that introduce each factor in effective manner.
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