Pestal Analysis for Samsung Electronics Essay

Over the ultimo some(prenominal) familys, thither has seen a plethora of discernible of invention suit of clothess indoors the smartphone industry. In the highly free-enterprise(a) environment, manufacturers of handsets wear been aggressive in defend their intellectual properties by suing competitors by claiming infringements on patents. For example, in touch 2010, orchard apple tree sued HTC for allegedly infringing on 20 apple patents (Weil, 2010). Apple also sued Nokia in 2010 for similar patent infringements( secure wars, 2011). However, in April 2011 the International swap Commission recommended that neither HTC or Nokia should be found liable for any infringements. unless Microsoft reached a licensing agreement in April 2010 with HTC to cook up royalties on Android based handsets (Patent wars, 2011). More recently, Apple launched a lawsuit against Samsung in April 2011 claiming Samsung copied design features of the iPhone in its galaxy line of Android phones (Qu igley, 2011).These be in force(p) a few examples of legal challenges approach by smartphone manufacturers. Mentioning all lawsuits in the past several years is beyond the stage setting of this analysis, but it is chief(prenominal) to recognize that manufacturers atomic number 18 using their patent portfolios to contact it more onerous for their competitors to gain big market shares. Even if the majority of cases are found to be dubious, the be associated with legal battles gutter hamper or slow galvanic pile the release of radical handsets and hence making it more difficult for the manufacturer to stay competitive. sparing purlieuThe North Ameri sens miserliness is as yet recovering from the financial crisis of 2008. Major factors to mete out are the unemployment considers, consumer disbursement. In September 2011 the unemployment run in the US was 9.1% which is well to a higher place the national average of 5.7% between 1948 and 2010 ( fall in States Unemploym ent). The current high unemployment value in the US is likely having an impact on reducing smartphone sales.A 9.1% unemployment rate represents around 28 million Ameri crumbs out of work. In Canada,the unemployment rate in September 2011 was 7.1% which represents its final point since December 2008 (Canada Unemployment). Since January 2010, Canada has been experiencing a down trend in unemployment (Canada Unemployment).The high unemployment rate in the US has been negatively impacting consumer faith and has resulted in a return in consumer spending. Bloomberg reports consumer spending dropped 0.2% in June 2011 which provides evidence the decrease in hiring and wage gains below the pretentiousness rate are affecting consumer spending (Chandra, 2011). Consumer spending accounts for 70% of the US economy (Chandra, 2011) any fluctuation in this field of view will have a remarkable impact on the overall economy. In Canada, the opposite is true.Consumer spending increased by 3.8 % from world-class quarter 2010 to the end of 1st quarter 2011 (Canadian Consumer Spending). Consumer impudence is Canada seems to be higher than the US likely resulting from lower unemployment rates and Canadas faster paced reco very from the global financial crisis. referee 1 http//www.tradingeconomics.com/united-states/unemployment-rate referee 2 http//www.tradingeconomics.com/canada/unemployment-rate Ref 3 http//www.bloomberg.com/news/2011-08-02/consumer-spending-in-u-s-unexpectedly-falls-for-first-time-in-two-years.html Ref 4 http//www.moneris.com/AboutUs/MediaCentre/NewsAndEvents/2011/Month/Jul%2014.aspxSocial-cultural EnvironmentThe rise of the teaching age has made telecommunication more important for twain business and pleasure. It is important to determine how receptive a lodge is to new advancements in technology, particularly smartphone espousal in this case. By measuring smartphone word meaning by age demographics, a wear out understanding of who the primary t arget groups can be gained. Insights into how different groups of smartphone users use their catchs can provide insights into new features or improvements in established features.At the end of 2010, there were 63.2 million smartphone subscribers in the US (comScore Inc, 2011). The credence rate has been increasing annually in December 2009, 16.8% of Americans owned a smartphone, speckle in December 2010 the adoption rate increased to 27% (comScore Inc, 2011). By March 2011, 32.2% of Americans adopted a smartphone (ref 2). The increase of sightly over 10% over a one year period along with over a 5% increase from Dec. 2010 and March 2011 shows that the US race is very receptive to new smartphone technologies resulting in quick market expansion.Breaking adoption down into demographic groups, 12.6% over the age of 55, 16.7% aged(a) 18 to 24, and 27.2% aged 25-34 owned a smartphone in December 2010 (comScore Inc, 2011). According to comScore, the fast growing age segments in sma rtphone adoption are 13 to 17 year old and those aged 55 and up (comScore Inc, 2011).ref1 The comScore 2010 Mobile Year in retrospect -http//www.comscore.com/Press_Events/Presentations_Whitepapers/2011/2010_Mobile_Year_in_Review ref2http//www.comscore.com/Press_Events/Press_Releases/2011/6/comScore_Launches_Mobile_Measurement_in_CanadaTechnological EnvironmentThe more or less important aspect of the technological environment in this case is the cellular net income cornerstone. Both the US and Canada have foundation in place which supports both theatrical role and data transfers. However, rural regions may have poorer quality of service, and do non always support data transfer. However, most of the population is concentrated in urban and sub-urban regions of both countries these regions have the receiving set nucleotide in place to support all uses of smartphones.The infrastructure in both Canada and the US is privatized, which convey the network carriers maintain and upgr ade it since it is in their best interest to retain and keep up cellular subscribers happy.Natural EnvironmentSince Samsung does not manufacture its handsets in North America, the innate environment is insignificant in cost of strategy formulation. Typically, a manufacturer needs to be aware of extreme hold patterns and availabilityof local natural resources within the region they have manufacturing facilities. However sure regions, particularly along the Gulf slideway are prone to hurricanes. These massive storms can damage the cellular network infrastructure which would render smartphones into paper weights.Political/ efficacious Environment Just random ideas decline now for this sectiono wireless communication regulationso electronic device safety regulations?o deregulation of the visit industry Trademark and Patent Lawso Currently there is a freehanded number of patent and intellectual airplane propeller litigations/lawsuits in the US, particularly in the smartphone i ndustry, including a dispute between Apple and Samsung. Apple claims Samsung copied iPhones design features, packaging, and user interface components. o Patent trolling has become a big issue in the US. FCC Regulationso Part B of the FCC rules sets rules for radio absolute frequency strengths for 850,900, 1800, and 1900mhz bands in order to prevent hurly burly with other communication devices and infrastructureEconomic Environment US Census assurance 2010 Census http//www.census.gov/prod/2011pubs/p60-239.pdf o average household income $49,445 in 2010o median value for family household $61,544o average for individual female householder $25,456o Median for single male householder $35,627 US International Trade Commission fit in Tariff Schedule http//hts.usitc.gov/ o there is no import duty or tariffs for telephones, including telephones for cellular or wireless networks