STRATEGIC MANAGEMENT

Strategic Management

Table of Contents

Introduction3

Environmental Analysis of Mobile Phone Industry3

Mobile Phone Industry in Brazil3

SWOT Analysis4

Strengths4

Weaknesses4

Opportunities4

Threats5

PEST Analysis5

Political Analysis5

Economic Analysis5

Social Analysis6

Technological Analysis6

Apple Inc. as Selected Company6

Recommendation for Apple7

Conclusion7

References8

Strategic Management

Introduction

During the last decade, the development of mobile telephony has been changing as today the number of mobile subscribers throughout the world has reached from hundreds to billions. This represents almost a third of the 6.5 billion people on the planet. No one can deny the reality that mobile phones today are seen as a necessity of everyone all over the world. However, it is also a fact that today's rapidly changing business and technological environment gave many benefits to the consumers at one hand, while it also posed some challenges for the mobile manufacturing companies on the other hand (Crawford, 2012). In fact, it can be seen that today many mobile companies are now fighting for their survival in mobile phone markets. The current market situation shows that companies like Nokia, Motorola and Sony Ericsson are now facing tough competition from new comers of mobile phone market like Apple, Samsung and HTC (Bremmen, 2012). It is important to know that these emerging mobile companies adopted various innovation strategies in order to meet the market challenges and offer unique products to meet the needs of customers in the fast changing environment.

No doubt, Nokia appeared on the screen as a leader in this market and is still a number one company in the global mobile phone industry despite the fact that company is having a significant loss in many markets (Bremmen, 2012). As far as the decline in previous market performance of Nokia, Motorola and Sony Ericson is concerned, it can be seen that the new comers are filling the space that these companies ignored. In other words, it would be fair to say that it is these companies who did not pay enough attention to the nature of volatile business environment as well as changing needs of customers. However, the Apple has introduced some innovative products such as 'iPhone' that can be seen as a big hope for the Apple to gain its market dominancy (Sande, 2012). Another important thing to know is that Apple should also consider the potential of growth in emerging markets like Latin America, India or Africa rather than keeping focus on the developed markets of Europe and North America. This paper aims to discuss and analyse the environment of the mobile phone industry in Brazil and provide a strategic direction for the company in Brazilian mobile phone market.

Environmental Analysis of Mobile Phone Industry

It would not be wrong to say that mobile has reached saturation levels or maturity in most developed countries. In fact, Western Europe and North America have a matured mobile phone market, while a significant growth has been seen in the number of subscribers in developing countries like China, India, Eastern Europe, Latin America and Africa (Crawford, 2012). For countries that have already achieved high levels of mobile penetration, ...