Consumer Electronic Goods



External industry analysis on "Consumer Electronic Goods" industry



Overview2

Discussion3

Industry External Analysis3

Political4

Economical4

Social5

Technological5

Legal Analysis6

Environmental6

5-Forces Analysis6

Extent of Competitive Rivalry7

Threats of New Entrants (Low)7

Customer Power (High)7

Threats of Substitute (Low)8

Supplier power (Low)8

Type of Industry8

Phase in the Industry Cycle9

Strategic Groups in the Industry10

Critical Success Factors in the Industry11

Marketing Strategy12

Customer Orientation12

Consumer perception12

Conclusion12

References14

External industry analysis on "Consumer Electronic Goods" industry

Overview

In Europe, the United Kingdom is one of the leading markets for consumer electronic goods as it holds more than 23% share of the European market with its sales reaching up to £ 11 billion (Sodhi & Lee, 2007). The market offers unique opportunities for cutting edge consumer electronic products by serving a platform for technology research and development. It also provides an infrastructure of business to capitalize and stimulate on the innovation concept. The UK citizens have spent more on electronic products as compared to any other European countries. These products include HD- ready TV, mobile handsets and Blu-Ray players. Due to promotions in the consumer electronics, the United Kingdom is well renowned for its engineering, optoelectronics and electronic design innovations as it severely serves as the hub for the technological excellence in the consumer electronics (Christensen et.al, 2005). The subject of this report is focused on the Consumer Electronic Goods industry of the UK since the last decade. The focal point will analyze the industry using PESTEL analysis, five forces model, and type of industry, phase of industry, industry strategic group and critical factors to success of this industry. However, the item period require to complete this analysis is around 6 months.

Discussion

Industry External Analysis

The need of this particular analysis is very significant, since it is the tool is aimed to give the analysis of the external environment in terms of the circumstances in which business is being operated. However, it is important prior the formal commencement of the research in order to give better grounds for future considerations.

The framework of PESTEL analysis lies on external environmental examination that were influenced by several categories such as Political, Economical, Social, Technological, Environmental and Legal factors. It also helps managers to understand the key drivers of change that create differential impact of these external influences over the industry markets as well as individual organizations.

Political

According to CIPD, the coalition government spending cuts are going to result in 1 million jobless people in the private sector due to the financial crunch. Proclamation of redundancies will constantly have a negative effect on spirit, cause and benefit of remaining workers (Van Ommering et.al, 2000). The adverse impacts could be decreased by delicately taking care of redundant workers and those remaining and to be as faithful as could be expected under the circumstances in order to win back their trust and confidence.

Economical

According to RNCOS, a leading business research and consultancy firm, consumer electronic market is expected to grow by 7% between 2013 to 2016. The 3D television makers will be adding a 3D feature on their products on a high-definition flat screen that will make it more ...