Thursday, April 11, 2019
SingTel Group Essay Example for Free
SingTel concourse EssaySingTel Group is Asias leading confabulation theory group, providing a diverse range of communication operate and solutions, including fixed, roving, data, earnings, info communications technology, beam and pay TV. They atomic number 18 listed as the largest familiarity in capital of capital of capital of capital of Singapore Exchange by groceryplace capitalization. They atomic number 18 in addition listed on the Australian Securities Exchange as a result of our acquisition of Optus, the second largest communications provider in Australia on September 2001. In addition, the SingTel Group is a prospicient- destination strategic investor in six regional mobile operators in India, Indonesia, the Philippines, Thailand, Pakistan and Bangladesh. To serve the needs of multi field corporations, SingTel has a network of 36 offices in 19 countries and territories throughout Asia Pacific, in atomic number 63 and the USA. The SingTel Group serves about 3 83 million mobile clients in 25 countries. In Singapore, SingTel has 130 years of operating experience. SingTel has played an entire part in the developing of the country as a major communications hub in the region. Today, SingTel continues to shape the digital media and ICT commercialize in Singapore.Despite secure liberalization since 2000, SingTel remains the leading mobile, broadband and fixed pull operator and in July 2007 ventured into home en good dealtainment with the launch of mio TV. In September 2010, SingTel launched high-speed fibre run, with distinctive applications focusing on entertainment, convergence and yieldivity enhancement for home and wrinkle users. SingTel is a long term strategic investor. As a strategic investor, they work closely with their affiliates to grow the business, by leveraging their scale in networks, customer reach and extensive operational experience. SingTels affiliates benefit non only from the relationship with SingTel.By existen ce part of a larger group, they are able to share experiences and insights from one anformer(a). These learning help affiliates as they navigate repugns and take favor of opportunities in their own markets. In the future, the Group continues to review bracing enthronisation opportunities in Asia and emerging adjacent markets and lead be financially discip livestockd in its evaluation of sweet investments. (Sustainability Report, 2010)Purpose of the analysisAs the Asia Pacifics best mul eondia solution group, SingTel believe that creating and delivering prize to customers, employees and shareholders is fundamental to their business. They are making communication easier, faster,more economical and reliable by breaking the barriers of distance, price, time and technology. Singapore Telecommunications Limited (SingTel) has allwhere 130 years of operating experience and has played an integral constituent in the development of Singapore as a major communications hub in the regio n. SingTel are doing comfortably to bringing the best-in-class orbicular communications solutions to customers. So, the purpose of this analysis to provides an overview of SingTels approach, priorities and performance in the area of sustainability for business operations and how they work with their regional associates.Their policies and programs are covered under four key areas Marketplace, People, Environment and Community. Moreover, be conquest for legion(predicate) years, SingTel has been competing with umteen players within specialty market. This paper is to analysis the divergent factor of Singapore environment implys on the specialty telecom pains and competitive environment of SingTel and its amount of money competences in gild to win in the market battle2. Macro environment analysisThere are many factors in the macro-environment that depart affect the decisions of the managers of SingTel. Tax changes, new laws, trade barriers, demographic change and political science polity changes are all examples of macro change. The PESTEL model will evolve in Singapore market in order to understand the influences and demands, which will help the party to pursuit of the organization goals and sustain the business. It also provides the tractability for the company to have effective response to adapt the international environment.2.1. Political- legalRecently, the Liberalization and Privatization of Telecommunications in Singapore supported by Telecommunication imprimatur of Singapore (TAS). The telecoms manufacturing as hearty as SingTel oddly entered a phase driven by fast-changing technology, which is stimulated by the demands of increasingly sophisticated end-users. To meet these demands, at that place has been a worldwide trend towards privatization, liberalization and deregulating in the telecoms industry. This trend has created many opportunities, as well as challenges for SingTel. Liberalization, deregulation and competition thus of fer a viable approach to ensuring the provision of reform quality of benefits at highly competitive prices. SingTel also stimulatemore innovative service of processs aimed at satisfying the needs of different market segments with custom-made solutions. In Singapore, the liberalization policy is aimed at increasing consumer choice and stimulating greater efficiencies in the use of scarce picks.In 2009, the Info-communications Development Authority of Singapore (IDA) has made a decision with regard to SingTels exemption request for the Business and Government client Segment and Individual Markets. This helps SingTel to seek exemption from the application of Dominant Licensee regulation to its provision of telecommunication work in six individual markets, all retail telecommunication services to customers in the business and organisation customer segment with an annual spend on telecommunication services of at least S$250,000. (IDA Singapore, 2009)Singapore has one of the most g o upd Information and communication technology (ICT) networks in the world with in truth high levels of access. This has been possible due to the small size of the country as well as procession levels in income and government commitment to telecommunications excellence. SingTel was originally a monopoly on the ICT field until the market plainspokened up to the other companies. (NUS.edu.sg)2.2. EconomicsEconomic situation is one of factor affecting to SingTel business directly. Globalization has jumped national boundaries, opened and increase trade and business has also an opportunity for the company. Thus, the using of telecommunications device and services has increased globally and the trend is expected to continue. This provided SingTel the opportunity to invest oversea, to enlarge the market and maintain profitability. Recently, the Singapore government has invested heavily in diversifying the economy. The business sector will create good environment to support and travel the workforce as well as establishing the legal and financial business framework.All the economic sectors will continuously grow such as tourism industry, financial service, consultant service and retail. The growth in various economic factors presents the opportunity for SingTel to increase business locally. Furthermore, the telecommunication services are closely coupled to economic activities in Singapore and region. So, SingTel need to have a good preparation to take the full advantage of effects such as the change of income and consumer spending habit.2.3. Social cultureSingapore grow is unique with four major ethnic groups Chinese, Malays, Indians and Eurasians. They are still strongly believed in their traditional take to be although the new-fangleder generations has started to adapt with the western culture. Especially, there is a phase in the mindset of Singaporean that kiasu pith afraid of losing out to other. With this mindset, many young Singaporean has worked hard to expect high income and succeed the new and modern technology. They are always changing in their lifestyle, purchase behavior and the demand the high standard of quality and services. These present an opportunity for SingTel increase their revenue by offering the new and customized the product and services A change is taking place in the mobile industry. customers are increasingly booked with their smart phones and Internet devices to perform functions for work and leisure anywhere, anytime. Richer applications and services will be delivered over mobile networks. In fact, for many regional and rural customers in the developing markets, they will be accessing the Internet for the early time through their mobile phones. SingTel has seen this fact and moved to meet customer demand.2.4. TechnologyTechnology has changed and genuine rapidly and continuously nowadays. New services such as Internet Telephone and the increasing of telecommunication users are the reasons for company to in vest developing new technologies in products and services. In the current business, SingTel covers telephone line, e-commerce, Internet and mobile services. But SingTel has indentified e-commerce and Internet-based activities, which there are significant growth with customer segments. So, the technological investments are an integral part of SingTels strategy for long growth. Also, the high investment in proven technology was the fine factors made SingTel succeed in the past.3. Key Opportunities and Threats of SingTelIn the telecommunication industry with 4 main external environment factors that are affecting SingTel, it creates the opportunities as well as the threat for SingTel.OpportunitiesThreatsSingapore has highest income per capita in AsiaSingapore is the most advance information technology hardware floor in the world.Merger and acquisitionsThe higher insight rate in SingaporeRefocused its oversea in investment in AsiaTrend of deregulation and privatization.Customer deman ds and expectations.Rapid growing of technological changesThe economic crisisStarHub and Mobile1 as new competitorFaced competition from immaterial callback service.Government creates competition.3.1. OpportunitiesBecause of high demand of the market and the operating environment of SingTel is very competitive, which means that the company can see the environment will the same or more challenger in the future. However, the company still has opportunities to maintain the status as leading telecommunication company in Singapore and the region. Firstly, Singapore has highest income per capita in Asia. This affects on the purchase behavior of customer tend to use internet and telecommunication service in daily life as well as in the workplace. Secondly, Singapore is the most advance information technology hardware infrastructure in the world. This is a good condition for the telecommunication industry development generally and for SingTel in particularly.It was non just in Singapore m arket also it is the SingTel strengths to enter oversea market. Such as SingTel also offers hybrid satellite-fibre solutions to penetrate customer needs in Asia Pacific, USA, Europe and Middle East markets. Moreover, SingTel brings more than 25 years of experience in delivering industry-leading satellite communications. The innovative solutions vest to offer state-of-the-art communication solutions that will create order and optimize communications for customers. Especially, the trend of deregulation and privatization were opportunities for SingTel to take a big step in improvement quality and price of service in the highly competitive environment.3.2. ThreatsDemand is growing so it will create a more earnest competition among telecommunication companies. StarHub and Mobile1 are considered as majorcompetitors of SingTel. Thus, the expectation of customers is increasing toward the demand of quality and service standards. Even when SingTel invest in but never found out service solu tion to customer, it will become very difficult to access them, especially when the company wants to penetrate markets in developing countries. During the corner of the world economy has greatly affected the SingTel development. At this time, when the effect of currencies by the inflation and the pricing wedge in product and service, the people have to narrow their demand. Additionally, the merger of SingTel to Asian countries strongly influenced by the global recession.This has greatly affected the sales of SingTel in the region. The foreign callback service was a threat affect to SingTel when the price of this service is even cheaper than SingTel service. Also, when SingTel is joining their business globally, they must follow the various regulations and laws in different countries. These provisions tend to be stricter with foreign companies in this industry because the government wants to protect their local industry. This is also a challenge for many companies include SingTel.4 . Competitive environment analysisBy application of gatekeepers five forces model, it helps to find out the business strategy problem of evaluate the investment value of SingTel. An understanding of this, it suggest for SingTel to know which key success factors are necessary to cope with the competitive forces. CDocuments and SettingsNguyen DungDesktopporterfiveforces.gif4.1. Threat of Substitute Products (High)The importance of fixed line is slowly decreasing as a convenience method. The threats of substitute for fixed line telecommunication is high and replacing by VoIP (Voice over Internet Protocol) and mobile phone applications, which can be a benefit for reducing communication and infrastructure tolls. However, the fixed line telecommunication is still using widely in almost company included SingTel. This is proved its convenience and efficiency by coming of interim price and non-price term for fixed line telecommunications services under the new telecommunications access reg ime. These services are currently used as inputs by competitive communications companies to provide voice, facsimile and broadband internetproducts to consumers and businesses.4.2. Power of buyers (High)Buyer affect a company through their ability to force down price, bargain for higher quality and more services and play competitors against each other (Wheelen and Hunger, 2010). The bargaining power of supplier is high for SingTel because of the increase of various communication and low switching cost. Customers can choose to use internet telephone over fixed line service. In Singapore, there are two big competitors as StarHub and Mobile1, where SingTel have to consider to their products and services. The customer has many alternatives in the standard and undifferentiated between SingTel products and others.4.3. Power of Suppliers (Moderate)On one hand, there is a labyrinthine sense of power between suppliers and telecommunication companies in Singapore, so the power of suppliers i s moderate. On the other hand, suppliers are not able to compete directly with present customers because of the geographically extensive networks and the effort to make long term contracts can be difficult for the telecommunication market.4.4. Threat of New Entrants (Low)Every potential entrant into telecommunication industry is required a license issued by the Telecommunications Authority of Sing Singapore (TAS). Meanwhile, as the credential issues are highly sensitive in the operations of telecommunication services, the Singapore government will skitter very carefully before accepted the license. Moreover, the new entrant required capital as a key factor and the new entrant can measure the sufficiency of financial resource. As the market dominated by SingTel that is personify to others companies. Given the entrance barriers are high, so the effort of a new player in telecommunication industry is low.4.5. Intensity of Rivalry (High)There are several factors related to to intens e rivalry. The number of competitors has increased while the industrys growth has slowed down, have caused the strong industry rivalry. M1 being the main competitor that have huge resources and strong power. SingTel have to watch each other carefully to step among their competitors. Moreover, as the products and servicescharacteristics that required the high investment as well as low mobility of fixed costs and infrastructure make it difficult for the company position in telecommunication market.5. Core competenciesIn order to be successful, SingTel human resource and brand image must be value, rare, imperfectly inimitable and non- substitutable compare with other companies in same industry (Barney, 1991). Value SingTels successes are based on customer focus. By understanding their needs and anticipating to them, SingTel enhance business success by offering to customer value and quality service, meanwhile they are always looking for the yeasty and innovative ways of doing business and sharing a passion for making a difference. Moreover, leadership police squad and employees are the most important assets for the company. By working as one team with share goals, they are developing strong bonds by communicating and sharing knowledge. By contributing value to everyone, this encouraged the open discussion and commit to an agreed position. As the leadership and superior position, their performance is achieved through pursuit of individual(prenominal) excellence. They seek continuous improvement and take pride in what they do. To layher, they celebrate the success and achievements.Therefore, human resources are most valuable resource of SingTel. Policies to bring the training programs for staffs and managers to not only aware of their responsibility to mechanism and set the example in the implementation of the value of the company, also train them have a vision of the future business. Rare Beside the commitment to provide a healthy and safe environment for empl oyees, SingTel created an environment to get human resources where the people were not only achieved the goals, also the people can work in the accordance and share value to take responsibility and make commitments to customers. This will become very rare if not any company can do this while the business moral is slowdown toward benefit ahead. SingTel is attached to reducing environmental footprint through concerted practices. They address and focus on managing environmental protection, resource conservation, waste reduction and the impact of operations. These internal processes will allow the company to monitor, assess and mitigate the deduction of any adverse impact of business on the environment, society, customers and employees.By addressing the social concerns that are critical to the offbeat andsustainable development of the communities in which SingTel operate. SingTel supports a wide range of programs focused on two strategies SingTel cutaneous senses Lives Fund (STLF) i s our merged philanthropy program in Singapore to support community programs and disadvantaged children and young people. Support community development to prevent disaster relief and down illness in the communities in which SingTel has a high potential impact. Imperfectly inimitable Through integrating best-in-class human resource practices for natural endowment recruitment, retention, development and employee welfare, the company nurture and groom future leaders to power SingTels sustainable growth. SingTel pluck the top talent around the world because of the employee diversity is integral to business success as every employee bring their unique skill and work experience to enable grow the global market.To ensure equal employment opportunities within the company based on non-discrimination and fair employment policies, all employees are selected on merit and their ability to perform the specific job functions. So, the human resource strategies were the sustainable competitive a dvantages that no company can imitate. Non- substitutable Staying ahead of the competition in this dynamic telecommunications industry is an ongoing challenge for SingTel. Therefore, the element of non-substitutable is the necessary weapon to compete on the marketplace. The SingTel efforts will focus on the new market and satisfied customers. With SingTel, is not only committed to action when the things broken, but it is a long way to bank customer and make them smile to SingTel product and service.It was also the investing for future to adapt the flexibility of the market needs. Moreover, if without the ability to commit to good governance, will not be tied with the members to go on long road full of challenges and hardships. SingTel recognize good corporate governance and transparency are critical to ensuring the long-term success and protecting shareholder interests. This also aligns with the corporate objective to strengthen market leadership and corporate reputation.6. Conclus ionBased on the position of specialty telecommunication industry, as well as SingTel capabilities and core competences, they are doing well, but SingTel should make the strategic actions to overcome threats. Firstly, concentration is an effective strategic action to reduce cost, where SingTelneed to realize the weaknesses in business strategy. Through improvement structure of operations and the scanning continuously of internal economic, SingTel can in the long run reduce production, distribution and service cost to the advantage of the consumer as well as the company. If SingTel can do this, SingTel will achieve status of the lowest cost telecommunication services provider.This allows the company to increase the competitive advantages. Secondly, Research and Development (RD) is an investment to companys future because when the current product lines outdated by their competitors, they will lose sufficient. RD will useful for engine room work that it give own wholly and safety as we ll as provide the pooh-pooh per unit cost. This helps SingTel to pursue cost leadership position and against the potential competitors.