2.0 EXTERNAL AUDIT2.1 Political Factors
– The government of UK intends to change its old televisionbroadcast signal from analogue to digital (digital switchover). It will have achieved this inevery region by the end of 2012. As a result, everybody is obliged to ensure that they eitherupgrade their television sets or buy a new one if they want to continue receiving televisionbroadcast after the switchover is completed.
2.2 Economic Factors –
There is presently an economic crisis in the country majorly dueto weakening property markets, a global credit crisis and high commodity costs (BBC, 2008).Unemployment rate is at 5.8% (Financial Times, 2008) and projected to rise significantly toover 8% by end of 2009 (OECD cited in BBC, 2008).Inflation is presently at 4.5% and Interest rate has been cut to 2% on 4
of December (Bank of England, 2008). Banks are currently withdrawing on the amounts they lend out eventhough the lending rate has been said to drop (BBC, 2008)Speculations of the severity of the economic crisis is making consumers spend less, withdrawfrom “premiumisation” and some delay purchases as the pattern has been in previousrecessions in the hope that product prices will still come down further. (Timesonline, 2008).This “delayed spending” coupled with declining inflation is a threat as they could furtherworsen the economic downturn (BBC, 2008).
2.3 Socio-cultural factors
– the most obvious lifestyle change is cocooning. Job loss,economic crisis, devaluation of the pound, expensive abroad vacation prices (which has beenreflected in an 8% drop in Air traffic (Financial Times, 2008)) are together pushing morepeople to stay indoors.
It has consequently had an effect on the demand for consumerelectronics such as flat-screen TVs and surround sound systems (GMID, 2008).
2.4 Technological Factors –
Government has decided to change to digital transmissionbecause it offers more services than analogue and allows households to pick digital stationswith ordinary aerials (DigitalTelevision, 2008). This is forcing flat screens out of marketbecause they are not HDTV compatible.