Add on to previous 2 assignments
budsimpson
tasley_2_1.docxINTERNAL AND EXTERNAL ENVIRONMENTAL ANALYSIS 5
Internal and External Environmental Analysis
Name:
Course:
Tutor:
Date:
External factors
|
|
strength |
weakness |
opportunity |
Threat |
trend |
|
Legal and regulatory |
Mob Unit can build a brand meeting all the legal requirements |
Penetrating companies with high taxation rates on imported cellphones aimed to promote local brands |
Setting up assembling industries in countries with low foreign company taxation rates |
Federal Communication Commission and the government change in broadband rates |
The regulations change such as the taxation rates and the amount of products acceptable as imports to some countries is limited |
|
global |
Ease of transporting Mobi Unit phones all over the world by planes or ships |
Resistance of phones from the West especially in China |
Concentrating on countries or continents with larger markets |
Accessing faithful native staff in different countries to transact the business |
Partnering with resident companies to sell products under their name to ease penetration in the market |
|
Economical |
Unique brand |
inflation |
Wider market |
Presence of cheaper phones |
Increase in sales after building trust on a brand |
|
Technological |
Decline in fiber optic |
Copyrights from rival companies |
Unique fashion design |
Phone software and hardware compatibility |
Constant change in the cellphone operating system and type of network |
|
environmental |
Wireless communication does not require many communication lines |
Poor network reception in case of bad weather |
Many residential areas are accessible transporting cellphones is easy |
Areas with bad terrain transporting of cellphones or setting up network boosters is hard |
One network booster are set up to improve internet reception for many phones over a large area |
|
Competitive analysis |
Product differentiation |
Customer loyalty |
Consistency in producing quality and pocket friendly phones |
Capital to fund the project successively |
Cooperation between two cellphone companies to share their intellectual property |
Internal factors
|
|
strength |
weakness |
opportunity |
threat |
trend |
|
strategy |
Product differentiation |
The group coming up with the strategy and the implementing group being different |
Developing a cellphone with nice physical appeal, low cost and high quality |
Duplicating already existing system hence failure to produce expected outcomes |
Conducting a research on existing strategies and modifying them |
|
Processes and systems |
Interconnection of PCs to access phone applications |
Phone and PC compatibility |
Creating a linking software to link phone with all types of computer operating systems |
Compatibility of the phone systems in all countries |
Development of iTunes in case of IOS |
|
Resources |
Donors and hiring competent staff |
Failure of technicians to adequately troubleshoot all problems |
Hiring experts on part time basis |
Higher cost than the budgeted |
Seeking assistance from banks |
|
culture |
Social responsibility |
Adherence to the vision and mission |
Instilling a sense of trust to the society |
Time taken to gain acceptance by the society |
People develop positive mindset after the success of a pilot project |
|
technologies |
New systems not prone to failure |
Ability to select the best idea |
Using different technology from other mobile phone companies |
Obsolescence of the proposed technology |
Setting incubation labs to nurture different technologies |
|
Intellectual property |
Can patent their work before release of the pilot phones |
Already existing ideas which is already patented |
Negotiating with already existing patent owner |
Decline of the patent owner to sell the idea |
Sharing of the profits in case of existing patent |
|
Leadership |
Pre-set guidelines to follow |
All leaders getting on board in actualizing the business plan |
Reluctant and inactive leaders can be set aside |
The leading tech experts bailing out when the process is midway |
Signing of a contract with the leaders |
Forces and Trends
Economic
As much as Tasley may produce quality phones, their business model success depends on the buyers’ purchasing power. Issues such as inflation reduce the ability to buy phones. On the other hand since phones unlike food stuffs are not basic needs, it may take time for a potential customer to buy a new phone. The company has the responsibility of global advertisement and persuade customers why to purchase their product over other phones. One of the advantage of Mobi unit business model is that people are currently using smartphones. The Mobi Unit smartphones are prone to have high demand due to their design, features and reasonable price in comparison with other phones.
Legal
In order for a company to produce a new phone brand in the market, it has to adhere to certain legal procedures. The company has to ensure they do not duplicate already existing systems. Each existing mobile phone company has their own patents. Apple and Nokia companies have lawsuits on infringement on each other copyrights on their hardware and software. It expected that each company should develop their own phone software and hardware and in case they have to use another company’s intellectual property, they have to consult in advance. (Mary, 2010)
Economic
To improve the potential buyers’ purchasing power, Tasley produces quality phones and sell at cheaper prices. IPhone phones are very expensive phones. Producing a gadget similar to iPhone at a cheaper price creates a competitive advantage to Mobi Unit. The appealing physical appearance of the Mobi Unit will attract customers. Product differentiation is a mode of advertising Tasley embraces. Another way of dominating the market is increasing the contents of the application store. Increasing of applications accessible through the phone will make the phone, the preferably phone over the others. (Frue, 2016)
Legal
Since Mobi Unit phones aim is to improve the existing systems, it is not possible to use the intellectual property of the existing iPhones. Mobi Unit intends to identify the already existing iPhone hardware and software parts and develop their own systems from the scratch. One of the objectives of Mobi Unit is product differentiation. For a product to be differentiated it has to be unique. Developing a new product and avoiding infringement of other companies’ intellectual property is the path Mobi Unit intends to follow to avoid lawsuits.
Supply chain of the new division
The Mobi division, being part of the Tasley Inc. has various departments within it for successful production of the brand. Some of the expected departments are production department, sales and marketing department, financial department and the executive leaders of the branch. The production department is responsible for development of the software and the hardware, and assembling of the phones. The production department are the pillars of the new division. After successful production of the mobile gadget, the sales department takes over to do advertising and selling the new product. The sales department should identify their target market and conduct their advertising in the most persuasive way possible. The sales and marketing offices should be situated globally to enable the company increase its sales volume. The financial department is responsible for the financial management of the new business unit. At the end of the financial year, the financial department is expected to submit all the financial documents which help in decision making depending on the profit margin.
Major issues and opportunities facing the company
Competition
Mobi Unit faces stiff competition from Apple, Samsung and Nokia among other smaller mobile phone companies. The three dominant phone companies have already ventured into product differentiation. They produce phones of various specifications with different price ranges. Some people have developed loyalty and trust in these brands. Mobi Unit has to strategies on ways to attain such a goodwill. Some of the questions to help them promote their brand are; what product promotion methods can we use to attract more customers? What limitations do the phone users encounter in using their phones?
Some of the challenges customers experience are cracking of the cellphone glass screens. Mobi Unit can manufacture cellphone screens with different materials other than glass which easily cracks when the phone falls. Global active participation in social responsibility is a special way of marketing themselves. People develop trust in the brand on noticing the company has the burden of its customer’s wellbeing other than making huge profits.
Smartphone era
There is huge demand for smart phones since the cellphones are currently used as portable personal computers. Many countries are in the analogue to digital migration. Introduction of the internet of things and cloud of computing are some of the milestones in technology. People use smartphones to access their bank accounts, access situation situations of their homes while at home and configuring their cars with their phones. The demand for smart phones is on the rise an opportunity Mobi Unit can use. People prefer carrying their documents in their phones other than their computers since they are portable. Some of the research questions Mobi Unit can use are; what applications can they develop to differentiate their brand from other smart phones? And Are Mobi Unit designed for which economic class level?
Resources
In order to produce a cellphone a lot of physical, human and physical resources are necessary. Many companies such as Siemens and Motorola used to produce cellphones but withdrew on the way. There is constant change in technology in the mobile industry. When the cellphones were introduced, many cellphones had edge network. There is progressive change in the network upgrade to 5G and 6G network. Mobi Unit has the responsibility of setting up an I-lab to consistently nurture new technology since other companies patent their work. The human resource to consistently develop new systems is not readily available for a startup company. Above all, the financial aspect is very important. Some of the research questions are; where is the source of the company’s funding? Does the company have competent human resource with the appropriate skills to develop new technology?
References
Mary, B. (2010). Political & Legal Factors Surround the Cell Phone. Denisevig's Blog.
Retrieved 2 April 2017, from https://denisevig.wordpress.com/2010/04/20/political-legal-factors-surround-the-cell-phone/
Frue, K. (2016). PESTLE Analysis of the Telecommunication Industry. PESTLE Analysis.
Retrieved 2 April 2017, from http://pestleanalysis.com/pestle-analysis-of-the- telecommunication-industry/
