Chinese Smart Phones in Africa
The first component of the PESTEL analysis for the Techno’s industry is economic condition. The video mentions about the poor economic condition of Africa as a continent. Africa is a developing continent and majority of its inhabitants are classified as low income earners. The cost of living is not high but still the income that most people get or generate is barely enough to cater for all the needs. The unemployment rate is also high across the continent which makes it even harder for some people to afford mobile phones that are expensive. Therefore, Transsion, the company that makes mobile phones called Tecno realized this fact and makes phones that are pocket friendly. Tecnos are cheap mobile phones when compared to other mobile phones like Samsung and IPhone. With a price tag of less than two hundred dollars, it becomes affordable. This is the kay factor that has enabled Tecnos to succeed in this industry (Dzimwasha, 2019).
Another component of the PESTEL analysis is the technological factors. In order to capture the Africa mobile phone industry, Tecnos are tailor made to fit the specific needs of Africans. They use technology that produces better selfies and this is a game changer especially with young adults. Having a mobile phone that takes better looking photos makes them more attractive and admired by many. Thus, the technology that Transsion is using in making Tecnos is well researched to fit the needs of people in Africa. Moreover, the company makes batteries that last longer. This is also a game changer since one does not need to charge the phone several times like what other brands require. In Africa where there is constant power outage, having a phone with a battery that lasts long is important (Schaltuper, 2019). Thus, most people would prefer Tecnos even when other options that cost the same are available in the market.Chinese Smart Phones in Africa
The force that is most important in Tecnos industry is competition from new entrants. In the mobile sector industry whether in Africa or elsewhere new entrants usually disrupt the market in a big way. For instance, Nokia used to be the majority shareholder of African mobile market. However, failure to respond properly to new entrants saw Nokia pushed out of the market. Today, that place is held by Tecno but this might change soon with other mobile phones such as Huawei and Itel also being liked by many (Maina, 2019). It will take only another better and more affordable phone to dislodge Tecno from that place. Today it is facing fierce competition from Itel and Huawei and sooner than latter another new entrant will want to share the same cake.
Three ways Tecnos benchmark their phones are
Pricing their phone lower than their rivals
Offering some custom made features in their phones
Researching to know the trend in Africa mobile phone market.Chinese Smart Phones in Africa
Dzimwasha, T. (2019). “Youth unemployment is Africa’s greatest challenge”, says Tony Elumelu – African Business Magazine. Retrieved from https://africanbusinessmagazine.com/interviews/youth-unemployment-africas-greatest-challenge-says-tony-elumelu/
Maina, S. (2019). TECNO and Infinix Losing Market Share to New Entrants – Jumia Kenya. Retrieved from https://techweez.com/2018/03/15/jumia-kenya-mobile-white-paper/
Schaltuper, A. (2019). ‘Two-thirds of Africa’s population still don’t have access to electricity – and it’s threatening the security of the continent’. Retrieved from https://www.independent.co.uk/voices/africa-energy-poverty-afdb-kenya-nigeria-lpg-gdp-electricity-europe-global-south-a8449626.html