Question

Create a PESTEL Analysis for Samsung and identify the most important in the smartphone market

Answer 1

PESTEL analysis tells about the external macro environment factors in which the company operates.

Let us discuss the all factors one by one-:

Political Environment-This political factors influence very much on the Samsung is good company but everyone has own view due to its tough competition with the Apple in mobile phones and it over with involving govt for other countries.as American govt was giving its best to stop the company to have market share in Europe and Samsung in German have to stop Galaxy tablets due to political factors.

Economic Environment-If we talk about today's time the brand has expanded its operations in almost more than 60 countries and Samsung is taking best measures to invest high amounts in its infrastructure in almost every country.Samsung is building very huge infrastructure in South Africa  and making employment opportunities for more than 3000 people there.

Social Environment-we can understood by Social trend in South Africa for new technology and innovations to meet the new needs of people thre and Samsung is trying its best to fulfil the needs of people there by selling its products specially smartphones.

Technological Environment-Technology is growing everyday worldwide and specially in South Africa and Samsung make the needs by preparing budget phones by Launching Galaxy note 2 which is like tablet and also make work for phone,so it can be use anywhere.

Ecological Environment-Samsung in Korea have its own full support system there and have established more than 130 service centres and there old phones are collected with customers while giving some reward and the collected phones are used to get recycled to have minimum impact on the environment and making many measures in whole process such as production,transportation to take care about the environmental health.

Legal Factors-In 2011,The South African government enacted Consumer protection act 68 for the Samsung and it makes negative impact to Samsung as there are full chances of throw away their third quality product in third world country to get maximum profit just as company did the same strategy in India.