Vodafone Pestle Analysis

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The Cellular Telephone Business: Increasing Competition in a Growing Market Marita Jadlos MBA 635 June 22, 2009 Definition and Symptoms of the Problem This year – 2009 – will be the toughest for the cell phone industry. This is not surprising given that all industries are in trouble in this bad economy. In years past, consumers would replace their old phones with the newest and hottest phone on the market. Now that the economy is in a downturn, people are not spending as much resulting in a drop in sales. The economy is not the only thing contributing to the industry’s difficulties. It has hit a point where there aren’t any new features left. With camera, internet, apps, touchscreen, even watching TV from your phone, the options are looking very slim at this time. A phone’s new features entice consumers to buy. Finally, what is bad for the industry might be good for the consumer. With sales expected to slow down, prices may also drop. With a lack of new features, the only thing that can change is the price coming down (Bauer, 2009). Macro: PESTEL Analysis Political Environment • Vodafone mobile phone licenses are tightly controlled and access to the spectrum is limited. In addition, political pressure may be brought about • In Africa, mobile phones outnumber fixed lines at a higher ratio than on any other continent. Entrepreneurs selling the use of their cell phones now bring service to villagers who previously had to walk hours to place a call. • More Europeans now send and receive short text messages with their phones than use the Internet from personal computers. • The Philippines leads the world in text messaging via cell phone. “txting” by protesters to organize rallies against former President Joseph Estrada was a factor in his recent ouster. • In the United States, the world’s second largest market for cell phones after China,

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