PESTEL Analysis of Telecommunication Industry Sample Essay

PESTEL Analysis of Telecommunication Industry

The telecommunication industry has gone through a lot of changes to stand out in the competitive business world. The telecommunication industry has experienced a steady GDP growth during the last five years. The subcontinent’s economy is expected to grow momentarily over the next five years. A great PESTEL analysis of the telecommunication industry is one of the great strategies that have helped understand the industry for many interested investors. The main categories that define the PESTEL analysis are political, economic, social and technological factors. Other factors are categorized on legal and environmental basis.

Telecommunication sector is recognized as an important tool for socio-economic development for any nation. The global telecommunication sector has undergone a great process of transformation through substantial reforms and many other developments. The sector is growing at a rapid speed of 46 to 50% during the recent years. Telecommunication is all about the transmission of messages over imperative distances for the purpose of communication. Today, telecommunication industry involves the use of electric means like telephone and telegraph and use of fiber optics.

Approximately 20% world population has access to internet today. The industry is vast and offer widespread career opportunities and this has helped develop world economy. Development in the industry include functional jobs in the mobile telephony, wireless communication, GPRS, GSM, CDMA technology, VoIP AND optical network amongst others. Besides all these developments in the telecommunication industry, many investors have problems figuring how to succeed in this industry.

Conducting a PESTEL analysis of telecommunication industry is a proven strategy that has helped greatly. It is a process that investigates the important factors that impact the industry. A PESTEL analysis is a part of external analysis that is carried out when conducting market research and offers great ideas on the macro-environmental factors that include;

  1. Political factors

Political factors that impact the telecommunication industry are ways through which the government intervenes on the telecom industry. Government laws have always put restrictions on phones and the tariffs that the telecommunication industry can easily produce. Every new technology has to adhere to these governmental rules. Goods and services made available by the telecommunication industry should also fit the privacy and safety government regulations.

  1. Economic factors

Inflation, economic growth and interest rates are known to have great impacts on the telecommunication industry. Competing businesses need to stay afloat into the industry especially during global recession. Different companies will try hard to remain relevant regardless of the efforts and investments they have to go through.

  1. Social factors

The common social factors that are associated with telecommunication industry are all about career attitude and safety. Many companies rely on telecom industry to carry out conference calls, instant messaging, emailing and for daily phone calls.

  1. Technological factors

There has been matchless advancement in the technological sector. New phone models and communication are being produced on daily basis and this clarifies that all companies are focused on new technologies in the market.

  1. Legal factors

Legislation issues have always impacted the telecommunication industry. There market has also opened doors for imports and exports a move that has increased the number of new technological devices in the market. Employment laws have also impact the industry and this has increased productivity in the market.

  1. Environmental factors

These are the environment related factors that surround the telecommunication sector. Companies need to consider public opinions in order to have a great way to excel in the market. Global warming and climate change are a few things that many companies have to look at and work their way out.

Majority of the telecommunication companies operate under competitive and rapidly changing environments. For any company or investor to excel in the field, it is wise to keep with the changing environment. Any telecommunication company should also be able to facilitate its customers with exceptional and quality material at lower prices than its competitors. The products and services should also keep up with customer wants and the society in general.

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