• Below is Xiaomi’s external environment assessment using the following two analysis methodologies i.e. the PESTLE (Political, Economic, Social, Technology, Legal and Environment (PESTLE) Analysis; and Porter’s Five Forces Analysis. 2.1 PESTLE Analysis Using PESTLE, Xiaomi is cognizant of the following macroeconomic situations that will affect its business and appropriate measures have to be addressed accordingly in its business and marketing plans and strategies. • Political • Generally, Malaysia enjoys a stable political climate. Lately however, there are some negative political ramifications arising from high profile controversies regarding the RM2.8 billion political donation from the Saudi royals into the personal accounts of the Prime …show more content…
• Focused environmental issues include deforestation, wildlife protection, waste disposal, clean water, climate change, pollution etc. 2.2 Porter’s Five Forces Analysis • Upon analyzing and assessing its immediate surrounding mobile phone industry environment using Porter’s Five Forces Model, Xiaomi recognizes the following important factors to its business. • Rival Firms • There are quite a substantial number of mobile phone vendors in Malaysia and Xiaomi has been quite succesful with largest market share with about 18% of total, based on the top 10 most popular brands, followed closely by Samsung, the lesser known Oneplus, Asus and Lenovo (see Figure 1 below). • Competition amongst the vendors is very intense as the Malaysian market is rather small and fans of the make are usually young teenage people who are largely first time users of smartphones, who would move on to more expensive brands once they are . • Buyers (Customers) • With the pervasiveness of the Internet, bank customers are well informed about market information such as comparative offerings of other competing brands (including pricing, product features, free software, discounted accessories
- The Threat of Substitutes is high, since mobile product-life cycles are short. For example, Motorola is currently
In PESTEL framework, the external environment is classified into six broad categories: Political, Economic, Social,
Motorola has strong brand name in telecommunication market. It has well known in developed countries and being established in developing countries as well.
Porter’s five forces will be used to evaluate company’s competitive environment Porter, 2008) comprising of threat of new entry, supplier power, buyer power and threat of substitute.
The core competencies of any firm is to satisfy the customer needs and preferences so that it can gain more returns. This is achieved through change of business strategies to those which enable the firm become competitive through exploitation of core competencies in the individual products and services. Such strategies place a firm in a leader position in the industry it operates in relation to competitors as well as the five competition forces. To maximize profitability and boost competitiveness in the mobile phone and Smartphone industry, Apple and Samsung should employ strategies that ensure that they reach more consumers in the emerging markets.
Strategic Management of TESCO supermarket: PESTEL analysis, Porter 's 5 Forces analysis, Critical success factors, SWOT Analysis, VALUE CHAIN analysis, TESCO 'S strategic options, Core Competences & Cultural Web.
A company which wants to enter into a new market must first understand the target market’s business environment and how to create and retain customers by providing better value than the competition. As the environment changes, businesses must adapt in order to maintain strategic fit between their capabilities and the marketplace. When we are analyzing the macro environment of a company we usually use the PESTE analysis to help us to clear our goal, identify all the factors which are affecting our company directly or indirectly. Such us political factors, economic factors, social factors, technological factors, environmental factors and legal factors.
There are many important issues in the world regarding the environment and it's affects on the
In the second quarter of 2007, Motorola had shipped 35.5 million mobile handsets whereby Nokia shipped 100.8 million handsets. Nokia emerged as a leader in the global mobile phone industry, holding a market share of 38.0 percent, by the 2nd quarter of 2007.
The use, acceptance, adoption and application of internet technology to businesses to boast their performances are not something new. Saffu et al., (2008), states that there has been a significant increase in the use and application of e-commerce in businesses in the past decade. E-commerce has benefits such as reduction in costs, increased business opportunities, reduced lead time and providing more personalized service to the customers (Turban et al., 2008). Internet banking or e-banking is one of the many tools of e-commerce adopted by the banking industry. Tools of information technology such as internet banking have significantly improved the quality of services offered by the banking
This tool is used to measure and evaluate the macro-environment elements that may pose a threat to a firm. These elements affect firm’s business strategies. The PESTLE framework therefore judges 6 elements that influence the operating environment of the firm. These are political, economic, social, technology, environment and legal. These factors are all inter-reliant. For example, changes in the legal structure of an economy may affect the way a firm operates in that economy. There are other frameworks such as PEST, STEEP, STEEPLE, STEPJE, STEP AND LEPEST which firms can choose from depending on their nature of operations and the factors which are of interest to them (Morrison, 2013, Pg. 44-46; Johnson et
Figure 2. Internet Users in the World, by geographic regions, millions of users in 2011 [4]
on a high level of alert since the war in Iraq. Some of the UK 's export
Inorganic Growth - Xiaomi should look to grow inorganically as much as possible. With a wide range of startups happening in technology & mobile content, Xiaomi can look to ideally invest in these companies and look to add innovative features and services from these companies to their products. With recent acquisitions of Segway by Ninebot (Xiaomi Backed), it shows Xiaomi’s serious intentions of expansion by means of acquisitions in terms of inorganic growth. FI would be critical in Xiaomi’s plans for further acqusitions as it looks to acquire them in India.
The intensity of rivalry is also a great threat for iPhone. Protection of the Korean mobile phone manufacturers helped the local companies like Samsung and LG to sell together about 90% of mobile phones in the country. With the opening up of the industry, competition will