This in India. SingTel has also added to the

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 Profile. (2017).)

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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).)

 

 

Political

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.

 

 

Environmental

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 environment.

 

 

Social

Singapore currently 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.

 

 

Technological

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.

 

 

Economical

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.

 

Legal

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

 

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