BlackBerry Company PESTEL Analysis

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BlackBerry Company PESTEL Analysis

Table of Contents

Introduction
Political factors
Economic factors
Social factors
Technological factors
Environmental factors
Legal factors
Conclusion
References

Introduction

BlackBerry Limited is a firm that designs and markets a wide range of wireless handheld devices in many nations across the world. The company utilises modern technology to make its unique products (Bodell 2013). Some of its recent handheld devices are the Z30, Z10 and Passport (BlackBerry 2014). PESTEL analysis is a strategic management tool that is applied by business organisations to gain an insight into their business environments (Johnson et al. 2011, p. 24). If factors in the environment are recognised and analysed, then the management can focus on planning an effective approach to achieving objectives, and reduce the number of errors that could negatively impact a firm. This paper aims at conducting a PESTEL analysis for BlackBerry.

Political factors

The political environment in the US has been very supportive for the operations of the business establishment (Johnson et al. 2011, p. 76). However, BlackBerry has been experiencing challenges in some nations. For example, in the recent past, India and China have raised concerns over the features that are utilised by the firm to promote the security of users who purchase its handheld devices (Kleinmann et al. 2012). In addition, Saudi Arabia and Egypt have increased their scrutiny on the companys products for security reasons (Tjiptono, Arli & Bucic 2014).

Economic factors

The smart phone industry is typified by high levels of elastic demand (Bodell 2013). Thus, economic factors are important for the operations of organisations in this industry (Howell 2012). The recent economic recess has negatively impacted sales in the smart phone sector. As a result of reduced incomes and increasing inflation rates, consumers are only willing to purchase high quality goods at the right prices (Tjiptono et al. 2014). However, the firm is anticipated to grow steadily in some markets of the developing world, such as India and China (Tjiptono et al. 2014). Due to the global presence of the firm, it is expected that global currency exchange rates would also impact the firm.

Some factors, for example, education and lifestyles, have great effects on demand trends in relation to smart phone sales. Markets that are characterised by high education levels are expected to record relatively high sales (Tjiptono et al. 2014). Lifestyles that could be brought about by income levels and religious factors have also been shown to impact the performance of BlackBerry products.

Technological factors

Technological advances in the smart phone sector in the recent past have greatly increased the level of competition (Howell, D, 2012; Tjiptono et al. 2014). Fortunately, the management of the firm has always been keen on adopting up-to-date technological platforms for its products to meet customer requirements. Some of the software advances used by the firm are GSM/GPRS/EDGE and HSPA/UMTS.

Environmental factors

The global business environments in which BlackBerry operates have a huge impact on its financial outcomes (Tjiptono et al. 2014). It has to comply with environmental standards that are related to manufacturing of smart phones. Environmental regulations are aimed at minimising environmental damage that could be caused by firms in the sector. Any mishap could culminate in reduced sales due to a tarnished image of the organisation.

Legal factors

Legal factors could positively or negatively impact the performance of BlackBerry Limited (Tjiptono et al. 2014). The company is involved in legal battles with firms, such as Visto, which could have both short-term and long-term implications its performance. In addition, it is involved in a legal battle with Minerva Industries.

Conclusion

This paper has demonstrated that the global business environments could positively or negatively impact the performance of BlackBerry. The management of the company needs to identify and reassess the impacts of the macro factors, which would go a long way in ensuring that the firm achieves excellent results in the short-term and long-term.

References

BlackBerry, 2014, Devices, Web.

Bodell, L, 2013, Innovation Starts with a Kill Manifesto, Leader to Leader, vol. 23, no. 69, pp. 48-54.

Howell, D, 2012, The Small Business Guide to Apps: How your business can use apps to increase market share and retain more customers, Harriman House Limited, Hampshire, United Kingdom.

Johnson, G, Whittington, R, Scholes, K, & Pyle, S, 2011, Exploring strategy: text & cases, Prentice Hall, Harlow, England.

Kleinmann, T, Chen, X, Jaderstrom, B, Pinkerton, J, & ONeil, S, 2012, HTC Marketing Plan. GRIN Verlag, Munich, Germany.

Tjiptono, F, Arli, D, & Bucic, T, 2014, Consumer confusion proneness: insights from a developing economy, Marketing Intelligence & Planning, vol. 32, no. 6, pp. 722-734.