PESTLE analysis for a cell phone repair firm
The cell phone repair industry will remain an indispensable industry even though it is not experiencing the growth level it had in the previous years. The industry is expected to continue having market potential and also a massive scope of the target market. The paper discusses some of the external factors that can potentially influence its growth as summed up by the PESTLE analysis below.
Political factors
The political factors that can have a more significant impact on the business environment and trade markets include the hereditary factors as well as government regulations. They include factors like trade regulations, tax guidelines, political stability, safety regulations, as well as employment laws. The profitability of any industry can deeply be impacted by political stability or instability. Economic stability often links to the global political environment. Chaos and disruption of the supply chain can come as a result of political unrest in the country. The legislative changes can bring both short term and long term effects on the market environment. The mobile phone repair industry in the US continues to grow due to the country’s political stability as they continue to do their business without the fear of losing their sales and profits. Furthermore, good employment laws, safety regulations as well as tax guidelines provided by the nations continue to provide an opportunity for the industry to thrive as many people can access their services due to better services offered by the government.
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Economic factors
Economic factors can directly affect the market conditions of an industry. Given the stronger nature of the United States’ economy, more opportunities are likely to be created by the mobile phone repair industry as more people will likely be able to afford smartphones as well as being able to cater for damage expenses. For a more extended period, the industry would be able to grow as more people can seek their services, that is, phone repair due to a stable economy of the nation they are located, which in this case is the US. However, the industry is also at risk of being under threat as a result of the economic recession the US government is likely to experience soon.
Sociocultural factors
Trends in social and cultural practices have as well affected the cell phone repair industry. The taste of many people has moved towards products that provide better mobility as a result of social media rise during recent years. Mobile devices with large screens have been used and owned by many people as they can provide both connectivity and options to surf the internet. Consequently, that has provided an opportunity for the industry to thrive as many people are using these devices, which means they are also able to carter for their damages, making it likely to access their services. Culturally, individual groups that value higher education are also like to seek the industry’s services. They are more likely to use mobile devices to find information from the internet, hence creating an opportunity for the industry as well, as they will seek their services to solve their cell phones damages expenses.
Technological factors
Changes in technology are very critical when it comes to mobile phone and computer repair. Spare parts in cell phone repair like screen, buttons, and speaker replacement as they come as better equipment to the market for mobile repair due to improved technology are products of technology, which are significantly impacted by changes in technology. The increased demand in mobile use as a result of increased popularity in mobile technology is one of the most significant technological changes that have affected the mobile repair industry. With a large number of mobile phone users, there are also more cases of cell phone damages being experienced, which creates an opportunity for the cell phone repair industry. The United States alone experiences a large number of mobile phone damages globally, as statistics show that every two seconds, a smartphone is said to have damaged.
Environmental factors
The major environmental issue for the cell phone repair industry is the accessibility of the location of the sectors as well as waste management. The adverse weather conditions or storms may make it difficult for customers to reach industry locations. This factor, however, can neither be a threat nor an opportunity for the industry as it can no longer be an issue due to the availability of online options.
Legal factors
The cell phone repair industry also needs to be legal compliance, as it is a very vital concern in all sectors. The industry needs to comply with the local laws as they provide their services to the public, given at times the challenging nature of the legal issues in most countries. It should be in their best interest to know that some laws are industry-specific, while there are universal laws such as labor and tax laws, which often create pressure on every industry. OSHA in the US requires all mobile phone repair firms to provide the right working conditions like customer guarantee of safety of their devices and products. Cell phone repair firms that offer assurance of the safety of customer devices are likely to attract more customers to their corporations, which creates an opportunity for them to thrive. However, legal challenges like noncompliance to the law and regulations can lead to unnecessary costs for the industry to cope as it becomes a threat to them.
