Macro environment of the mobile industry

1. MACRO ENVIRONMENT Any company operates in a larger macro environment of forces that shape opportunities and pose threat to the company.

2. There are six major forces in the company’s macro environment: • Demographic • Economic • Natural • Technological • Political • Cultural

3. Demographic Environment Demography is the study of human populations in terms of size, density, location, age, gender, occupation, etc. Demography environment is of major interest to marketers because it involves people and people make up markets. • Mobile industries launches handsets based on occupation. • They also launches its product according to location. • Sometimes industries launches its product keeping gender factor in mind.

4. Economic Environment The economic environment consists of factors that affect consumer purchasing power and spending patterns. Marketers must pay close attention to major trends and consumer spending patterns. • As far as mobile industries are concerned, the economic system is critical as it can control what the organization is to produce, how it should produce and the category of recipient who should use their end products. • Nokia has launched new handset Lumia 1020 in US not in India as company is focusing more on low budget handsets for India.

5. Political Environment This environment is also very important from company’s point of view because marketing decisions are strongly affected by developments in the political environment. It consists of laws, government agencies and individuals in a given society. Any political decision can affect market. For example: • In Egypt and Libya there are ongoing a political riot and in this situation Nokia company decreased their market. • Samsung violated a host of Apple patents and engaged in "willful infringement”.

6. Cultural Environment Cultural factors strongly affect how people think and how they consume. This environment is made up of institutions and other forces that affect society’s basic values, perceptions, preferences and behaviors. • Mobile industries operates in a diverse number of culture. • Mobile industry puts one local language in their handsets. • Marketing strategy depends sometimes on the culture.

7. Natural Environment The natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Mobile industries are continuously improving the environmental credentials of all their product like: • Improving energy efficiency. • Using renewable materials and smart packaging. • Making eco friendly products.

8. Mobile industries being eco-friendly Energy efficiency: automatic screen brightness adjustment, battery saver feature, energy efficient charger. Materials: free of PVC, Contains bio plastics & recycled metals, Free of nickel on the product surface. Recycling: 100% recoverable as materials and energy. Packaging: 100 % recyclable, minimized package made of renewable materials containing up to 60% recycled materials, Virgin wood fibers up to 100% certified.

9. Technological Environment Today technological advances are perhaps the most dramatic forces affecting today’s marketing strategies. Forces that are creating new technologies are also creating new products and market opportunities. The mobile phone in our hand is now packed with advanced tools that let you do so much more. • Nokia launched wireless charging phone. • Samsung launched phones with HD sensitive touchscreen. • Recently Nokia launched phone with 41 megapixel camera. • Sony launched a phone which is dust and water resistance.