1.External Environment Analysis & Implications
a.Political - Legal
While SingTel once enjoyed monopoly in Singapore’s telecom industry, the government (IDA) introduced and encouraged competition in year 1992, believing to prepare Singapore in general for expected increased in competition and expansion both domestically and internationally. SingTel then has been greatly affected with strong competitions such as Starhub and M1 (which respectively acquire 29% and 26% market share dated 2011 Q2). Initiatives from the Singapore’s iN2015 strategy has also been outlined to grow the info-communication sector so as to build a well connected society in Singapore with the global communication; that can potentially encourage growth in the mobile broadband services (IDA, 2005).
Singapore had managed to overcome financial crisis in 1997 and 2008 while many neighbouring economies withered during the period. As one of the world’s fastest growing economies in 2010, Singapore is still focusing on the trades and businesses greatly in financial services, tourism, exportation of electronics manufacturing & machinery and cargo seaport activities while developed economies of US and Europe were suffering aftermath of their crisis. Globalisation is the main plus point for any industry, especially in telecommunication, to further develop and expand the trade and business in a bigger spectrum. The use of such infrastructure and facilities has been well increased globally and the trend is definitely expected to bloom; thus this provides SingTel an opportunity to enhance their well-planned investment and acquisition in the overseas markets to increase the field for profitability growth.
Singapore as a developed country is almost unworkable without telecommunication facilities; the current trends are visible with the frequent and apparently great use of internet services and mobile devices everywhere, in the offices, homes and on the mobile. From a local Singapore perspective, customers in the market have been well evolved to acquire higher standards of services and quality in products purchasing; more expectations for value, personalisation and selection of products. The greater demands are manifested by the customers who are spoiled for choices; this suggests that competitions growths are expected to be more violent in pricings, products and services. In the long run, this has fortunately allowed SingTel continuously to be innovative and productive in their products and services to remain competitive as they are nevertheless the bigger brother in the Singapore which is able to provide with better infrastructures and facilities.
The growing changes and rapid development in the technologies explains the current trend and demand in the upgrading of such activities; such examples are derived from changing of traditional phone calls over fixed lines evolving into data calls via internet services. Technology has developed not only to upgrade the facilities themselves, and also to be able to connect to the world for better communication. Purchases are common to be online and such practices allow comparisons between competitors but unfortunately demands parity in information. SingTel is able to recognise development and investment of such technologies as the critical factor in the long-run in order to overcome the innovations which are continuously demanding from the customers.
a.Internal Strengths & Weaknesses
•Geographically diverse in operations less dependent on local market •Strong cash flow from investors & overseas revenue generator •Strong recognition in Branding from consumers survey
•Most advanced information technology hardware infrastructure in Singapore Weakness •Limited selections for local Pay TV product
•Continuous competitions with overwhelming new innovations and services...