PESTEL Analysis

PESTEL analysis stands for "Political, Economic, Social, Technological, Environmental, and Legal analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

Political

The mobile phone industry used to be a monopoly held by BT; however this was de-regulated in 1984 due to the telecommunications act. The current industry regulator is the telecomm regulator Ofcom. This was created to allow there to be fair competition. The mobile phone industry in the UK is one of the most competitive ones in Europe. It has introduced a voluntary code of practise for marketing and selling mobile phone contracts. However due to the large number of customer
The popularity of mobile phones can be determined by the announcement of a government funded drama series, targeted at teenagers, to be aired exclusively on mobile phones. This new technology is modern and deals have been done with the big mobile providers so that the service is free. In addition there shouldn’t be any issues or problems with phones not playing the footage.

Another social factor is that users are increasingly becoming addicted to their mobile phones, which is increasing their levels of stress (BBC News, 2006, A). These health issues were accessed by Dr David Sheffield (University of Staffordshire), and he discovered that problem behaviour linked to using a mobile in 16% of 106 users. In a separate study by Dr. Sheffield he found blood pressure was lower in those who had given up using mobile phones. There are also concerns that increased use of mobile phones cause cancer. The International Agency for Research on Cancer conducted research and scientists discovered that the chances of developing a malignant tumour are significantly increased for people who use a mobile for ten years. Further studies conducted with 500 Israelis had developed the condition and related it to their mobile phone usage with 1,300 healthy controls. Those who had used the phone against one side of the head for several hours a day were 50% more likely to have developed a salivary gland tumour. However some studies differ,