Singtel Case Study
Introduction
The ever-changing telecommunication industry is shaped by many factors in which if any players of the market is slow to react to consumer wants and needs, it will find itself soon out of business. Being a monopoly of Singapore telecommunication market, Singtel was previously able to earn large profits even if they were slow and inflexible to consumer demands. However such a regulatory advantage was removed in 1997 and in fact, they have lost a substantial market share to their new competitor within three weeks of entry. Furthermore, as Singapore telecommunication market is reaching saturation, Singtel would find it less profitable to invest heavily in state-of- the art technology in its home country since the demand may be too small.
Moreover the revolution of companies doing business globally shows that there are ample opportunities for Singtel to move from a single domestic market producer to doing business in multiple countries. This will be an opportunity to secure corporate clients who will require an integrated telecommunication service across several geographical regions in the world. In addition, telecommunications provider could bundle a package of services that includes corporate lines as well as consumer lines as their marketing tactic, therefore Singtel faces the possibility of losing consumer business if they fail to capture the market for corporate lines.
Looking at the telecommunications growth in other foreign countries (Exhibit 4), we see that many countries have increased their number of lines from year 1990 to 2000.For countries that have low growth rates, it could well indicate a high demand for basic telecommunication services in the coming years. Thus if Singtel were to bring along its technological competencies and efficient production capabilities into such market, they could possibly capture the foreign market shares. As for the relatively affluent countries which already have the basic telecommunications services,
The ever-changing telecommunication industry is shaped by many factors in which if any players of the market is slow to react to consumer wants and needs, it will find itself soon out of business. Being a monopoly of Singapore telecommunication market, Singtel was previously able to earn large profits even if they were slow and inflexible to consumer demands. However such a regulatory advantage was removed in 1997 and in fact, they have lost a substantial market share to their new competitor within three weeks of entry. Furthermore, as Singapore telecommunication market is reaching saturation, Singtel would find it less profitable to invest heavily in state-of- the art technology in its home country since the demand may be too small.
Moreover the revolution of companies doing business globally shows that there are ample opportunities for Singtel to move from a single domestic market producer to doing business in multiple countries. This will be an opportunity to secure corporate clients who will require an integrated telecommunication service across several geographical regions in the world. In addition, telecommunications provider could bundle a package of services that includes corporate lines as well as consumer lines as their marketing tactic, therefore Singtel faces the possibility of losing consumer business if they fail to capture the market for corporate lines.
Looking at the telecommunications growth in other foreign countries (Exhibit 4), we see that many countries have increased their number of lines from year 1990 to 2000.For countries that have low growth rates, it could well indicate a high demand for basic telecommunication services in the coming years. Thus if Singtel were to bring along its technological competencies and efficient production capabilities into such market, they could possibly capture the foreign market shares. As for the relatively affluent countries which already have the basic telecommunications services,