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Mentioning all lawsuits in the past several ears is beyond the scope of this analysis, but it is important to recognize that manufacturers are using their patent portfolio’s to make it more difficult for their competitors to gain larger market shares. Even if the majority of cases are found to be ‘dubious’, the costs associated with legal battles can hamper or slow down the release of new handsets and hence making It more difficult for the manufacturer to stay competitive. Economic Environment The North American economy Is still recovering from the financial crisis of 2008.
Major factors to consider are the unemployment rates, consumer spending. In September 201 1 the unemployment rate in the US was 9. 1% which is well above the national average of 5. 7% between 1948 and 2010 (“United States unemployment”). The current high unemployment rate in the US is likely having an impact on reducing smartened sales. A 9. 1% unemployment rate represents approximately 28 million Americans out of work. In Canada, the unemployment rate in September 2011 was 7. 1% which represents Its lowest point since December 2008 (“Canada unemployment”).
Since January 2010, Canada has been experiencing a downward trend in unemployment (“Canada unemployment”). The high unemployment rate in the US has been negatively impacting consumer confidence and has resulted in a decrease in consumer spending. Bloomberg reports consumer spending dropped 0. 2% in June 2011 which provides evidence the consumer spending (Chancre, 2011).
Both the US and Canada have infrastructure in place which supports both voice and data transfers. However, rural regions may have poorer quality of service, and do not always support data transfer. However, most of the population is concentrated in urban and sub-urban regions of both countries; these regions have the wireless infrastructure in place to support all uses of smartness. The infrastructure in both Canada and the US is privatized, which means the network carriers maintain and upgrade it since it is in their best interest o retain and keep cellular subscribers happy.
Natural Environment Since Samsung does not manufacture its handsets in North America, the natural environment is insignificant in terms of strategy formulation. Typically, a manufacturer needs to be aware of extreme weather patterns and availability of local natural resources within the region they have manufacturing facilities. However certain regions, particularly along the Gulf Coast are prone to hurricanes. These massive storms can damage the cellular network infrastructure which would render smartness into paper weights. Just random ideas right now for this section o wireless communication regulations o electronic device safety regulations? O deregulation of the telephone industry.