PESTLE analysis
2.1. Political Factors Initially, companies have to be aware of the current and potential politic trends within the country they operate. Governments may set restrictions, high tax-tariffs and prohibitions on certain products. The State affairs, its attitude towards relations with neighboring countries, trade regulations, consumer protection laws, health and safety requirements, trade union activities and stable political climate should also be of concern.
2.2. Economic Factors Blackberry is an international company operating in a number of different countries. Therefore, it needs to understand the basics of the economic conditions of each country they collaborate with. These conditions include economic growth patterns, competitor’s and supplier’s behavior, raw material prices, tax regime and wage rates. Yet another significant economic factor is the currency exchange rates that can have a great impact on the smart phone industry as it can make the costs of gadgets tremendously expensive or competitive by the fluctuation in exchange rate that might take place at any time. Similarly, a fierce competition in the market (External factor) directly influenced the context factors (internal factor) bringing collapse in sales of Blackberry. These factors require changes in Organization …show more content…
However in China, India and UAE, the company runs into strict government monitoring system and it created major difficulties for the company. Their Governments found it difficult to control the Blackberry users because of the phones’ highly security features making Blackberry phones strictly scrutinized. Subsequent political issue was obligation of new restrictions related to hygiene and safety standards in Germany and UK. Because it may impact function of RIM as Blackberry had run into problem with the utilization of energy, toxics and recycling. Unfortunately, Blackberry could not response these policies by adjusting the Organization