Due to the rapid rise of the Smartphone industry in order to analyze the current issues in and out of the industry. In order to critically analyze, this report will begin with focusing on the external factors using PESTE analysis, followed by the analysis of the internal factors using Porters five forces analysis. Finally, this report will conclude by offering recommendations for the Smartphone industry in general for guidance on future decision-making in regarding how to make it more competitive and resistant to other influences.
Political factors from external influence may include policy from government, tax, foreign trade and political stability or instability. All these factors may have repercussion on the smartphone industry. These repercussions may be seen in terms of current government policy on the Smartphone. For instance, by acknowledging the prevalence of the Smartphone in UK's society today, the current UK Prime Minister David Cameron claimed that the Coalition government should work to maximize the mobile internet coverage in the UK, since many parts of the rural regions of UK still do not have coverage. (Financial Times, 2014) To deal with the issue regarding mobile coverage, the Cabinet has already initiated a 150 million project called Mobile Infrastructure Project to improve the mobile coverage by contracting with the private media service company (GOV.UK, 2013). Therefore, by expanding mobile coverage in the UK, more people in the rural region become the possible consumer of Smartphones. As this political initiative shows, the UK government is helping the growth of Smartphone industry indirectly.
Furthermore, political stability also has impact on the growth of market. Shepherds (2010) claims that the political stability is an essential feature required for the growth of market. Political stability provides a stable market condition in which the businesses can make transactions without worrying about the volatility of political system.