This report aims to serve as
an assessment of SingTel’s operations in Singapore through a brief introduction
of the company, by conducting a PESTEL analysis and using the Porter’s 5 forces
on the industry to provide further analysis. In addition, this report will also
offer tactical counsel on SingTel’s operations.
SingTel boasts an impressive
130 years of operation and was also a major factor in Singapore’s growth as a
communication hub. In addition to being Singapore’s leading communications
group, SingTel also has shares all over Asia having invested in companies such
as Bharti Airtel which is primarily in India.
SingTel has also added to the title of best Satellite operator of the
year for the year of 2017 in their long list of accolades. (SingTel Company
PESTEL Analysis is a
structure or apparatus utilized by advertisers to dissect and screen the large
scale natural factors that affect an association, which was established by
Harvard Professor Francis J. Aguilar in 1967. PESTEL consists of six different
factors which are Political, Environmental, Social, Technological, Economical
and Legal, hence the acronym PESTEL. (Mind tools Content Team. (2017).)
Singapore is seventh place
on the global least corruption index as of the year 2016 and are the only
country in the continent to have made the top 10 that year. Singapore has been
consistently in the top 10 since 1996 displaying a very strong commitment to
fight against corruption and bribery. (The Straits Times. (January 26, 2017).)
With such low corruption levels, SingTel can relish in the fact that they can
set up operations island wide without worrying about briberies or corruption
that they would face if their operations were to be deployed in other countries
with high rate of corruptions that threaten organizations. Thus, it is a clear
indication that SingTel will prosper steadily in its operations in Singapore.
The world is suffering from
constant climate change and global warming and one of the major factors that
add on to this suffering is carbon emissions. SingTel adopted a climate change
adaptation analysis in 2016 and in return have alleviated its carbon emissions
by enhancing their efforts on their energy usage and efficiency. They have also
concentrate on diminishing power and fuel use in their operations which makes
up almost ninety-five percent of their carbon emissions. They have also started
an initiative to modify their current operating stations into new and improved
ones which not only reduces energy consumption by half but while enhancing
traffic capacities. (SingTel Environmental Profile. (2017.) Hence, showing
SingTel’s effectiveness when dealing with concerns pertaining to the
experiences an upward trend in the amount elderly residents per year. The
numbers have risen by 4.5% in the last decade from 8.5% to 13.5% in the last
decade. SingTel has invested considerable amount of time and effort to help
deal with elders whom may not have an easy time adjusting to changes in
technology or are suffering from loneliness by introducing the Project
Silverline. Project Silverline aims to aid the lonely elderly by enhancing
their way of life through technological enhancements. They have also pledged to
give free data and talk time for seniors for every iPhone donated. (SingTel
Community Profile. (2017.) Additionally, SingTel has also made it a point to
help Children and Youths with Special needs by organising a philanthropic
program, aptly naming it “Touching Lives Fund” and have gathered approximately
thirty-six million dollars since the year 2002. (SingTel Community Profile.
(2017.) By doing so, SingTel have displayed their corporate social
responsibility and the impact they have on Singapore’s Society.
In 2015, SingTel became the
first organisation to launch Virtual Reality and Augmented Reality technology
in Singapore and by doing so created a way to breakaway from the common market
and allow its consumers to experience something they have never done before.
(Zafirah, (February 27,2015).).In addition to that, SingTel is the first
telecommunication network based in Singapore to establish a 4G technology to
the public, which is approximately ten times faster than any other 3G data.
(The Straits Times. (May 10, 2013).) This shows that even though technology is
constantly improving at a rapid pace, SingTel has not only managed to keep up
with the advancements but also be the benchmark for innovation.
In 2008, following a
globalised economic meltdown a lot of Singaporeans were struggling with their finances.
SingTel stepped up in this crucial time and offered their assistance to the
members of the nation who were struggling in the crisis by giving them monthly
rebates of their bills and also improving the quality of their post-paid deals
to help them get more by paying less. Their ability to adapt to change even at
a crucial time makes SingTel a customer friendly choice.
Temasek Holding, the owners
of the majority of shares in SingTel are a company incorporated in Singapore.
They have strong affiliations with the government and even though affiliated,
the governing officials of Singapore cannot be a part of any investments under the
Singapore constitutions and law, Chapter 50, Companies act. (“Singapore
Statutes Online-Act 42- Companies act”). Even if the governing bodies are not
actively involved in operations of SingTel, having the backing of the
government shows SingTel’s tenability and reliability.
PORTER’S 5 FORCES
Created by Michael E. Porter
of Harvard University in 1979, Porter’s 5 forces framework helps establish a
better understanding on the factors that affect the organization.
Competitive Rivalry Within an Industry
SingTel has two major rivals
in the industry, M1 and Starhub, with Starhub being their closest rival in the
recent years. Starhub was the most used broadcast subscription up until the
year 2011 when they lost the rights to broadcast football matches (which has a
huge support base in Singapore) to SingTel, prompting a huge wave of
subscribers and football fans alike to make the jump to SingTel. This was seen
as an incredible power move by SingTel as they showed great credibility to beat
their rivals to the punch. (Today Online (10 November, 2015).).
Threat of New Entrants
Incorporated in 2014, Circle
life was the latest company to come into competition with SingTel as they
ventured into the telecommunications world. SingTel is improbable to suffer
from new entrants as they are considered a Titan with huge brand identity and
with affiliations to the governments new start-ups may find it hard to compete
with SingTel who are on a very high level.
Threats of Substitute products
The potential threats of
substitute products are imitation set up boxes where people are allowed to have
unrestricted access to pirated content. One example is in a raid that occurred
in January 13 2018, two android box sellers were arrested for selling imitation
set up boxers. (The Straits Times. (Jan 13, 2018).) This shows that regardless of threats from
substitutes due to the strict laws and regulations in Singapore, consumers do
not want to risk facing the law and would much prefer using a licensed product
such as SingTel’s Mio box.
Bargaining Power of Suppliers
As competition between
SingTel and Starhub is at an all time high, suppliers have a slight advantage
in this situation. However as mentioned earlier, SingTel has dealt with it’s
suppliers by offering more and winning rights over Starhub. Even though
suppliers get an upper hand in the bargaining power, SingTel can make up for
their losses by having one over their rivals.
Bargaining power of Customers
Even though SingTel is a very
popular choice among residents in Singapore, new entrants may pose threats in
the future. Circles life may struggle to compete with SingTel at the moment due
to the magnitude of SingTel’s operation but Circles life is offering a much
lower rates in the mobile contract programme and if SingTel do not act fast and
manage their prices better to cater to the residents, they may very well see a
huge amount of consumers moving over to Circles Life.
Offering more Variety
Due to law and restrictions,
SingTel and other telecommunication organizations are protected against
imitations and piracy. However, protection may not be good enough if people
find their content unsatisfying and if SingTel do not cater to more people’s
needs. As desire for more content available people may seek other alternatives
such as online streaming sites such as Netflix or solace and SingTel could soon
lose customers if the trend catches on. So its highly recommended that they
improve and add on more variety to satisfy larger group of people to avoid
Keeping up with technological advancements
In the telecommunications
business, innovation is key. Although SingTel has come up with a lot of
innovations over the years as mentioned above, technology is constantly
improving together with expectations from the clientele, thus SingTel needs to
work on ways to come up with rapid ideas of innovations to satisfy consumers
and stay on top.
Expanding Social responsibility
SingTel currently have many
schemes that help them sustain a reputable Corporate social responsibility and
its very commendable. However, as a company of this magnitude it may often seen
as not doing enough. SingTel could look into helping out at other areas such as
,education for the poor and scholarships for IT student to not only bolster
their reputation but also make people not only want to work with them but to
also work for them.
In conclusion, from this
report its evident as to why SingTel are the titans of telecommunications. They
are very well organised and have a brilliant synergy about them that makes them
dominant in the field of telecommunications. If they were to carry on what they
have already been doing , there is no doubt that they will remain on top. A
very powerful organisation that has very little negative aspects to it.