Influence of Technology and Social Factors on Mobile in UK

The growth in UK mobile communication sector is affected by interest rates, exchange rate as well as foreign tax rates policies. The UK, like many other developed nations has attempted to reduce trade barriers and eliminate tariffs in order to encourage economic growth across the world. This has created greater opportunities for growth in the mobile device sector as more foreign firms such as RIM, Huawei, ZTE, Samsung, etc, have seized the opportunities provided by the UK mobile market. However, the fluctuation in interest rate and exchange rates following the 2008 global financial crisis and Euro Zone crisis will have a negative impact on the growth of the mobile phone sector. Generally, UK is currently experiencing slow economic growth which has reduced consumer purchasing power due to lack of disposable income and thus, reduced consumer demand for mobile devices.

Sociological factors have greatly become one of the major influences in the telecommunication industry today. Not only have mobile devices become primary means of communication in the UK, but are also regarded as a fashion statement. As a result, the consumer demand for mobile phone has not only gone higher but has also become unpredictable as the needs and expectations of mobile devices changes with advancement in technologies. In addition, the increasing level of health consciousness with regards to mobile phone usage has presented unprecedented threats to mobile phone demand and usage as well as new opportunities to be exploited by mobile device makers and distributors. Although there is no conclusive research on the health impacts of mobile devices, the debate about the potential side effects of mobile phone usage has raised awareness among consumers across societies. RIM’s business opportunities in the UK are also likely to be affected by slow population growth in the country which is generally characterized by an aging population and reduced population of the younger people. It has been noted that mobile devices are more popular among the youth than older population, and therefore RIM’s mobile phone products may face reduced market opportunities in the UK mobile market. However, the growing trend in the corporate world for greater interaction and integration of mobile devices in business activities will present RIM with great opportunity to market its Blackberry phones in the UK mobile market.

Technology is the key differentiating feature in the mobile device as every firm in the sector seeks to have the latest cutting edge technology in order to stay ahead of the competition. With the emergence of smartphones which incorporate the latest and trendiest phone features, RIM’s mobile phones devices such as BlackBerry have been facing stiff competition for the market segments that it had earlier dominated. In addition, the 3G platform has also had an impact on the industry competition as a whole and on RIM in particular. Generally, there is increased rate of technological change in the mobile device business, and as a result firms do not know when a latest and up-to-date technological features will be introduce into the market and when their technologies will be considered yesterday and obsolete.