Pestal Analysis for Samsung Electronics Essay

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Over the past several old ages. at that place has seen a overplus of patent cases within the smartphone industry. In the extremely competitory environment. makers of French telephones have been aggressive in protecting their rational belongingss by actioning rivals by claiming violations on patents. For illustration. in March 2010. Apple sued HTC for allegedly conflicting on 20 Apple patents ( Weil. 2010 ) . Apple besides sued Nokia in 2010 for similar patent violations ( “Patent wars” . 2011 ) . However. in April 2011 the International Trade Commission recommended that neither HTC or Nokia should be found apt for any violations.

Further Microsoft reached a licensing understanding in April 2010 with HTC to pay royalties on Android based French telephones ( “Patent wars” . 2011 ) . More late. Apple launched a case against Samsung in April 2011 claiming Samsung copied design characteristics of the iPhone in its Galaxy line of Android phones ( Quigley. 2011 ) .

These are merely a few illustrations of legal challenges faced by smartphone makers. Mentioning all cases in the past several old ages is beyond the range of this analysis. but it is of import to acknowledge that makers are utilizing their patent portfolio’s to do it more hard for their rivals to derive larger market portions. Even if the bulk of instances are found to be ‘dubious’ . the costs associated with legal conflicts can halter or decelerate down the release of new French telephones and therefore doing it more hard for the maker to remain competitory.

Economic Environment

The North American economic system is still retrieving from the fiscal crisis of 2008. Major factors to see are the unemployment rates. consumer disbursement. In September 2011 the unemployment rate in the US was 9. 1 % which is good above the national norm of 5. 7 % between 1948 and 2010 ( “United States Unemployment” ) . The current high unemployment rate in the US is likely holding an impact on cut downing smartphone gross revenues.

A 9. 1 % unemployment rate represents about 28 million Americans out of work. In Canada. the unemployment rate in September 2011 was 7. 1 % which represents its lowest point since December 2008 ( “Canada Unemployment” ) . Since January 2010. Canada has been sing a downward tendency in unemployment ( “Canada Unemployment” ) .

The high unemployment rate in the US has been negatively impacting consumer assurance and has resulted in a lessening in consumer disbursement. Bloomberg studies consumer disbursement dropped 0. 2 % in June 2011 which provides grounds the lessening in hiring and pay additions below the rising prices rate are impacting consumer disbursement ( Chandra. 2011 ) . Consumer disbursement histories for 70 % of the US economic system ( Chandra. 2011 ) ; any fluctuation in this country will hold a important impact on the overall economic system. In Canada. the opposite is true.

Consumer disbursement increased by 3. 8 % from 1st one-fourth 2010 to the terminal of 1st one-fourth 2011 ( “Canadian Consumer Spending” ) . Consumer assurance is Canada seems to be higher than the US likely ensuing from lower unemployment rates and Canada’s faster paced recovery from the planetary fiscal crisis.

Ref 1: hypertext transfer protocol: //www. tradingeconomics. com/united-states/unemployment-rate Ref 2: hypertext transfer protocol: //www. tradingeconomics. com/canada/unemployment-rate Ref 3: hypertext transfer protocol: //www. bloomberg. com/news/2011-08-02/consumer-spending-in-u-s-unexpectedly-falls-for-first-time-in-two-years. hypertext markup language Ref 4: hypertext transfer protocol: //www. moneris. com/AboutUs/MediaCentre/NewsAndEvents/2011/Month/Jul % 2014. aspx

Social-cultural Environment

The rise of the information age has made telecommunication more of import for both concern and pleasance. It is of import to find how receptive a society is to new promotions in engineering. peculiarly smartphone acceptance in this instance. By mensurating smartphone acceptance by age demographics. a better apprehension of who the primary mark groups can be gained. Penetrations into how different groups of smartphone users use their devices can supply penetrations into new characteristics or betterments in established characteristics.

At the terminal of 2010. there were 63. 2 million smartphone endorsers in the US ( comScore Inc. 2011 ) . The acceptance rate has been increasing yearly ; in December 2009. 16. 8 % of Americans owned a smartphone. while in December 2010 the acceptance rate increased to 27 % ( comScore Inc. 2011 ) . By March 2011. 32. 2 % of Americans adopted a smartphone ( ref 2 ) . The addition of merely over 10 % over a one twelvemonth period along with over a 5 % addition from Dec. 2010 and March 2011 shows that the US population is really receptive to new smartphone engineerings ensuing in rapid market enlargement.

Interrupting acceptance down into demographic groups. 12. 6 % over the age of 55. 16. 7 % aged 18 to 24. and 27. 2 % aged 25-34 owned a smartphone in December 2010 ( comScore Inc. 2011 ) . Harmonizing to comScore. the fastest turning age sections in smartphone acceptance are 13 to 17 twelvemonth old and those aged 55 and up ( comScore Inc. 2011 ) .

ref1: The comScore 2010 Mobile Year in Review -http: //www. comscore. com/Press_Events/Presentations_Whitepapers/2011/2010_Mobile_Year_in_Review ref2: hypertext transfer protocol: //www. comscore. com/Press_Events/Press_Releases/2011/6/comScore_Launches_Mobile_Measurement_in_Canada

Technological Environment
The most of import facet of the technological environment in this instance is the cellular web substructure. Both the US and Canada have substructure in topographic point which supports both voice and information transportations. However. rural parts may hold poorer quality of service. and do non ever back up informations transportation. However. most of the population is concentrated in urban and sub-urban parts of both states ; these parts have the radio substructure in topographic point to back up all utilizations of smartphones.

The substructure in both Canada and the US is privatized. which means the web bearers maintain and upgrade it since it is in their best involvement to retain and maintain cellular endorsers happy.

Natural Environment
Since Samsung does non fabricate its French telephones in North America. the natural environment is undistinguished in footings of scheme preparation. Typically. a maker needs to be cognizant of extreme conditions forms and handiness of local natural resources within the part they have fabricating installations. However certain parts. peculiarly along the Gulf Coast are prone to hurricanes. These monolithic storms can damage the cellular web substructure which would render smartphones into paper weights.

Political/Legal Environment
• Just random thoughts right now for this subdivision
o radio communicating ordinances
o electronic device safety ordinances?
o deregulating of the telephone industry
• Trademark and Patent Laws
o Currently there is a big figure of patent and rational belongings litigations/lawsuits in the US. peculiarly in the smartphone industry. including a difference between Apple and Samsung. Apple claims Samsung copied iPhones design characteristics. packaging. and user interface constituents. o Patent ‘trolling’ has become a large issue in the US. • FCC Regulations

o Part B of the FCC regulations sets regulations for wireless frequence strengths for 850. 900. 1800. and 1900mhz sets in order to forestall intervention with other communicating devices and substructure

Economic Environment
• US Census Bureau – 2010 Census – hypertext transfer protocol: //www. nose count. gov/prod/2011pubs/p60-239. pdf o Median household income $ 49. 445 in 2010
O Median for household household $ 61. 544
O Median for individual female homeowner $ 25. 456
O Median for individual male householder $ 35. 627
• US International Trade Commission – Harmonized Tariff Schedule – hypertext transfer protocol: //hts. usitc. gov/ o There is no import responsibility or duties for telephones. including telephones for cellular or radio webs