During the past decades most people have been adopting themselves with the use of mobile phones. This has rapidly grown in different parts of the world and now, exceptionally the use of a mobile phone is as common as wearing clothes.
External factors of an organisation are the ones that the business has no control of while the internal ones are under full control of the business. My manager approached me and wanted me to produce a short simple and clear report of the mobile industry. As an employee of the mobile industry it was an obligation for me to obey. This was a big challenge for me and also it was a chance for me to learn a great deal knowledge about the mobile industry. The report was supposed to cover on various external factors that have impacts on the activities of the organisation. It also included the effects on our customers and suppliers and how to improve them so as to ensure better services to the customers.
The report will be categorised into different part with each part having a specific importance to the industry. These parts include PEST, SWOT and the market research which talks more about primary and secondary methods of research.
Marketing is the process of anticipating, satisfying and analysing customer's requirements profitability. It is very important for a business especially in ensuring the success of the business. The purpose of communication is for the organisation to present and exchange information with its stake holder according to its defined objective and to deliver specific results (Lowe 2009)
Market research is the process used to describe a full range of business activities (Chisnall 1996) therefore a business carry out a research normally to identify people wants before product launching this is mainly done in order to avoid failure during product launching. Most large companies have their own market research department (Keller 2009)
Primary research (Qualitative) this is refereed to as field research. It's the research that is based on quality. It is based on getting the original data about the market and the product. During approaching customers different methods of primary research can be used such as interviews, observations and questionnaires. Questionnaire is conducted by making people answer questions about the product and their views of the product. While conducting a questionnaire you learn people's attitude, knowledge and preference of the product.
During analysing my questionnaires most people where widely interested by latest mobiles with latest inbuilt software programs as this tend to provide help and support to them in the world. Its is very useful as people are able to obtain different source of data just by using their mobile phones and also they use it in many different ways which are very help full to them especially at work. People with good paying jobs tend to use mobile as reminders as well as schedule planner therefore they are always cautious. This research has its advantages and disadvantages, these are very important for a mobile company to take notice of and they will be listed below
1) it produces quality data as it tend to approach the question directly
2) its very reliable
I personally went in few mobile stores to carry out a primary research
This was on the 4th of February 2010 at 10:50 Am. Orange mobile store was the place. Luckily i was able to interview about 13 people from the age of 20 to 28, about different mobile requirements, specifications and its purchasing trends.
The results where as follows
a) Most people prefer product with many features
b) People tend to buy products with affordable pricing as well good design and quality
1) the cost of spreading the information is spread between different users therefore it makes it very expensive
2) its very time consuming
Secondary research (Quantitavily) this research is based on facts the information is second hand it already exists there fore it's referred to as desk research. This data is normally obtained through sources such as newspapers, journals, internet, books and even magazines. This research is very easy and takes a short amount of time but past results can change within time there fore it can be very misleading.
My secondary research involved net surfing and basing on facts it clearly shows that peoples taste has changed. More people prefer phones that are technologically advanced as they tend to cope with fashion as well as advanced mobile devices provide a wide range of help and support to customers during completing their tasks. This has different advantages and disadvantages. They include
1) Its always available and can be acquired at any time.
2) Its very cheap
1) It does not tackle straight away there fore its unreliable
2) Its often out of date
PEST analysis this is the macro environment where by the firm has very little control. It mainly consists of factors that are external. Pest is political, economical, social and technological. According to various methods used while conducting this research it was quite a challenge. The research used where primary and secondary.
This mainly deals with the law of the country where a particular company is located. In UK each and every company must comply with the law. It must be able to comply with new changes in the country's legal system and companies must provide training this is mainly to provide the required knowledge to the unskilled also to insure safety at work. It also encourages the unemployed to work. High tax rates that the company has to pay are also a law that the company must be prepared to meet up with. Due to this being an external factor the business has no control of but to prepare it self and though even this affect the customers disposable income as it tends to increase the price of product the company has no option but just to advertise for the product so as to encourage customers to make a purchase even though the product price might be high. The company must also be aware that the law is made with action, if not followed it cause problems to the company. Politically stability is an important factor to all company as this makes the company operate in a peaceful manner as it also increase the company security and customers become more confident with the products and thus brand name improves its status.
Are those that affect spending patterns and international trade (Chaffey 2003) this consists of factors such as consumer's income and many others which affect consumer's purchasing power. This affects people spending patens even though it differs from place to place. People with high disposable income such as empty nesters tend to be little affected as they have no responsibilities and they have a high disposable income in contrast parent with young children are more affected because they are dependants. They have to look after their children as the same time they also have to save so as to pay for the children's education. The company can launch products which mainly target the old population mainly because they have a high income. This mainly deals with money there for a company must know its market before realigns a product.
The company must be prepared to respond to changes of people socials attitude and peoples buying attitudes as in different part of the world recession is one of the biggest problem there for the company must know on how to rate their prices. In the UK recession is also a major problem there for the company must understand that most people are out of jobs there for it must know how to deal with this type of situations in order to maintain its customers as most people tend not to buy luxury goods. Inflation is also another external problem that's affecting the company. The company must carefully consider this situation where by money losses its value. The company has no power over this situation because it cannot control the supply of money in a country's economy there fore it must try its best to provide suitable options for the customers so as to ensure the safety of the company.
This mainly shows the peoples living styles there fore it is the cultural aspects of the macro environment, the industry needs to ensure product safety as most people have become cautious with their health and also the company should insure proper production methods of the product as to ensure safety of its customers.
We can see at present most people are careful about their health where by the company must act in response with these various changes so as to ensure safety in the mobile industry. Social way of life changes from time to time and in the UK at present Scientists claim radiation from handsets are to blame for mysterious 'colony collapse' of bees (www.independent.co.uk) there fore this can end up damaging the environments eco system three fore the company should be aware of such problems and should find means of solving them as this tend to destroy the brand image.
This mainly deals with the latest electronic devices and is the most dramatic aspect at the company as technology tends to change from day to day. Technology tends to improve at a very high rate as the phones produced know are much simpler and delicate then in the past decades. The latest mobiles are very complex mobile devices as people tend to cope with fashion. As a company we need to keep up with the day to day improvement of technology as to provide best product quality to our customers. This will also improve the company brand name as customers won't consider us outdated. The launching of new products such as I phone by Apple Company is a major boost in the market there for the company needs to keep track of the fast changing technology in order to keep up with competitors this will improve the company's opportunities.
The company should be prepared to invest a sufficient amount of fund so as to cope with the fast improving technology as this will also make them release latest quality products in the market.
SWOT analysis refers to strength weaknesses opportunities and threats. They normally show the parts that the business is strong at weak at and also the opportunities that the business is having and that they need to take advantages of and also the threats from competitors as well as the big challenge in the market. Strength and weakness are the internal factors while opportunities and threats are external
These are the advantages that one company have over the other. They are normally the main reason that attracts customers to a particular type of product in the market. Recently most consumers tend to be interested in highly tech mobile devices there fore companies with high tech technology tend to produce a product that most customers desires. The company must make well use of its strength as they are the main reason way customers tend to buy our products. Latest products that were produce by the company include an eight mega pixel camera. The realise of this mobile phones means people no longer have to carry mobile phone together with digital cameras therefore people are able to take high quality pictures and share them at the same time with close group. The company also need to know that the latest touch screen phones are very popular as most people tend to copy with fashion. The phone also has latest software devices that provide high help for business people and also they can access their email address at any time.
The main strength include
1) High tech mobile devices with good digital camera
2) Latest mobile phones with provide easy internet access to business people
They are normally the Disadvantages that the business is experiencing. They normally discourage customers in making a purchase. They are internally and the company needs to ensure that all the weaknesses are overcome in order to provide an appealing product to the customers. As one of a big brand in the industry we need to overcome our weaknesses
The weaknesses include
1) Maintaining poor quality product by the business without launching a new one
2) Lack of uniqueness in the product in contrast to competitors
These are external chances that exist for the business and it is very important for the business to take advantage of them so as to ensure product success. Opportunities are strength that exists for the business. This include
1) Fast delivery and cheap product
2) Making the process of buying the product more efficient
They are risks that or challenges that the business have. The business might try to overcome their threats so as to ensure safety of the company. Threats include
1) High tax for the products
2) Many competitors with more advanced distribution channel and advanced products
The company needs to change the product it produces with change in fashion so as to ensure customer safety, this will make us adopt with fashion there fore produce product that suits consumers requirements, in doing so the company must also be able to invest a lot of money in new products without them being sure that the product will be a success in the market. The company needs to carry out market research before launching its new products in the market in order to minimise its risk of product failure.
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