Singapore Telecommunication Limited Company -Myassignmenthelp.Com

Question: Discuss About The Singapore Telecommunication Limited Company? Answer: Introduction The report is about an international company i.e. Singapore Telecommunication limited which is popularly known as SingTel. The report will discuss the business environment which can have a major impact on the financial performance of the SingTel. Along, with this, the report will provide recommendations for the company to improve its competitive advantages. Overview of Company Singapore Telecommunication Limited (normally known as SingTel, and earlier portrayed as Sing Tel), it deals in the sector of the telecommunications industry (SingTel, 2018). Singapores biggest operators of the mobile network are SingTel with 4.1 million subscribers and have combined subscribers of mobile through subsidiaries with customers base of 640 million in 2017 (Dun Bradstreet, 2018). Till 1995 SingTel was also called as Equipment Telecommunications. It offers networks of a mobile phone, fixed-line telephony services, and ISP (Business wire, 2010). SingTel has increased its market share and gone out of the boundary of home market and has its shares in various regional operators, consisting 100% of the Optus. It is the second largest telecom of Australia which was acquire from Cable Wireless in 2001 and another shareholder of Optus, and Bharti Airtels 32.15% which is the biggest carrier in India (National Library Board Singapore, 2018). Vision The vision of SingTel is to become the best company of communication technology in the Asia Pacific (SingTel, 2018). Mission The mission of SingTel Company is to break the barriers and build strong relations with the customers. Impact of Business Environment on the Financial Performance of SingTel Company There are various environmental factors that have an impact on the SingTels financial performance. Trade barriers, changes in government policy, tax changes, demographic change and new laws are some of the examples of change in business environment. Political The Singapores Telecommunication Authority i.e. (Tas) has strongly supported the Telecommunications Privatization and Liberalization in Singapore. The whole telecommunication industry including SingTel Company has entered in a phase which is determined by fast-changing technology and encouraged by the demands of progressively cultured end-users. In order to fulfil these demands, the worldwide trend towards Liberalization, Deregulation, and Privatization has increased in the Telecommunication industry. This particular trend has generated various opportunities along with the challenges for SingTel Company. Competition, Deregulation, and Liberalization, therefore, propose a feasible method for safeguarding the delivery of services with better quality at extremely viable prices. Economics One of the factors that affect the business of SingTel Company directly is economic situation. Globalization has crossed the national boundaries, unlocked and enlarged business and trade has similarly an opportunity for the country. Therefore, the use of services and telecommunication devices has improved globally and the development is anticipated to carry on. This has offered the opportunity to SingTel Company to participate overseas, in order to increase the market share and uphold productivity. Recently, the government of Singapore has greatly invested in expanding the economy. The business sector will generate a better environment in order to help and encourage the employees as well as launching the financial and legal business structure. The overall economic sector will regularly grow such as financial service, retail, and tourism industry and consultant service. The expansion of several economic factors offers SingTel the opportunity to increase business domestically. Social- Culture The culture of Singapore is distinctive with four main ethnic groups: Malays, Eurasians, Indians, and Chinese. Today also they intensely have faith in their traditional value while the younger or new generation has started adopting the western culture. Particularly, there is a stage in the Singaporean attitude that kiasu which means scared of losing out to other. Through this attitude, several young Singaporean has operated hard to get high income and follow the modern and new technology. They continuously change their lifestyle, the demand for quality goods and purchase behavior. This reflects an opportunity for SingTel Company to raise their profits and returns by proposing the customized and new services and product (Frue, 2018). Technology Nowadays, there are continuous development and changes in the technology. The modern services like Internet telephone and the rising users of telecommunication are the cause for the company to invest in advanced technologies for developing services and products. In the present business scenario, SingTel Company includes services in their offerings like a telephone line, mobile services, internet services and e-commerce. But SingTel Company has recognized internet-based activities and e-commerce, which have a major growth in customer segments. Thus, investment in technology is an essential part of the strategy of SingTel Company for the long-term growth. Similarly, the high investment in established technology was the serious issues made SingTels flourish in the past. Legal In 2009, IDA (Info-communications Development Authority of Singapore) has announced a decision with concern to the exemption request of SingTel for the government customer and business segment and Individual Markets. This assists SingTel to pursue an exemption from the application of Dominant Licensee regulation to its facility in six individual markets of telecommunication services, overall services of retail telecommunication services to customers in the segment of the business and government customer with a yearly spend on the services of telecommunication of at least S$250,000. In the whole world, the most advanced communication and information technology is in Singapore with very great heights of access. This has become possible because of the countrys small size along with the increasing levels of government commitments towards excellence of telecommunication and income of people. SingTel Company was initially a monopoly on the field of ICT till the other companies entered in the market (Zhu, 2018). Environment Changes in climate and global warming can disturb how telecommunication services and products reach customers. In the matter of employment, with the advancement of technology, employees have to grab or adopt the changes. Products will come and go, frequently switched by something better (based on who is inquired, company or customer). Demands of the customers and telecom companies are anticipated to deliver. But with wants in the industry of telecom altering frequently, it's not definite which technology will remain for longer, be progressive, or discarded. SingTel Company faces the danger of the breakdown of, damage of, or loss to the infrastructure of the network from original (Catastrophe) or man-made reasons. Strengths Most of the operational, strategic and financial dynamics of SingTel are presently enhancing. It is working as a sign that the present business strategies of the company are demonstrating to be fruitful and successful (MBA Skool, 2018). The companys key business events are focused in Australia and Singapore and their associates are placed in Hong Kong, India, Philippines, Belgium, Indonesia, Thailand and Taiwan. The spread of geographical processes will help the company; because they will be less depending on the domestic market in order to earn revenue. Maximum of their businesses are receiving revenue growth in double-digit over the past year. Weaknesses In Asia, SingTel Company is a top telecommunication company; the customer service department of the company has some scope for improvement. Under the present highly competitive environment, companies have to offer different products, therefore; to do this the company should provide training to its employees in order to handle the problems of the customers more effectively. Opportunities Vietnam and Africa are the emerging markets in mobile space, which absolutely value their interest, and SingTel Company is keenly captivating the lead to discover the unused developing telecom market. Threats At the time when Star Hub and Mobile One get certificates to sell Apples widely held iPhone and they established on 9 December 2009, the 15th-month monopoly was lost by SingTel Company. Therefore, the company will probably face stronger competition in the domestic market. Recommendations The SingTel Company must make non-replaceable and appreciated competitive advantage by creating durable core competencies and proficiencies. Depending on the competitive advantage, Richard DAveni and Cliff Bowman used Strategy Clock in order to describe Michael Porters generic strategy. This strategy signifies diverse places in a market where consumers have diverse necessities in terms of worth for money. The company can have exclusive resources that others cant copy or acquire, for instance, long-term recognized brand; have a cost leadership as they follow lower-prices or price-based strategy. On the other hand, in the small local saturated market such as Singapore, managers might take hybrid strategy or differentiation strategy that offers exclusive or somewhat diverse services or products to customers from others by valuing a little higher. SingTel Company should implement a cost leadership strategy, because the company can competently make services with unique attributes, along with the ability to retain cost at the same time. The company can earn additional income by fulfilling the growing demands of the customer, and permit its services and products to be supposed inversely from the competitors which will work as an opportunity for the company to gain the customers loyalty. Along with this, the strategy of cost leadership would allow the company to vend its services and products both at normal prices in the industry in order to get more profits as compared to competitors or at less than the prices of the industry to increase the market shares. As alternatives or substitutes influence the companies of telecommunication by price competition, the strategy of cost leadership can be utilized in order to counter the new entrant's threat and alternates; providing it a competitive advantage (Zhu, 2018). Conclusion The above report has provided the brief explanation of the environmental factors that affect the financial position of the SingTel Company. PESTLE and SWOT are performed to explain the same which has explained all the factors that affect the business. Along with this, the report has provided some recommendation that can help SingTel Company to improve its productivity and competitive advantage. In the conclusion, it has been identified that the company can adopt cost leadership strategy to give competition to the new entrants in the Singapore market. References Business wire, 2010, Research and Markets: Singapore Telecommunications Limited (SingTel) - SWOT Analysis, Accessed on: 23 January 2018, Accessed from: https://www.businesswire.com/news/home/20101207005883/en/Research-Markets-Singapore-Telecommunications-Limited-SingTel-- Dun Bradstreet, 2018, Singapore Telecommunications Limited Company Information, Accessed on: 23 January 2018, Accessed from: https://www.hoovers.com/company-information/cs/company-profile.singapore_telecommunications_limited.c030f6883ed3f00b.html Frue, K., 2018, PESTLE Analysis of the Telecommunication Industry, Accessed on: 23 January 2018, Accessed from: https://pestleanalysis.com/pestle-analysis-of-the-telecommunication-industry/ MBA Skool, 2018, SingTel Optus SWOT Analysis, USP Competitors, Accessed on: 23 January 2018, Accessed from: https://www.mbaskool.com/brandguide/telecom-service-providers/10444-singtel-optus.html National Library Board Singapore, 2018, Singapore Telecommunications (SingTel), Accessed on: 23 January 2018, Accessed from: https://eresources.nlb.gov.sg/infopedia/articles/SIP_1610_2011-03-21.html SingTel, 2018, About The Singtel Group, Accessed on: 23 January 2018, Accessed from: https://info.singtel.com/sustainabilityreport2015/pdf/Chapter3_SR2015_AboutSingtel.pdf SingTel, 2018, Company Profile, Accessed on: 23 January 2018, Accessed from: https://www.singtel.com/about-us/company/company-profile Zhu, A., 2018, Singtel Business-level Strategy, Accessed on: 23 January 2018, Accessed from: https://business-strategy-competition.knoji.com/singtel-businesslevel-strategy/ Zhu, A., 2018, External Analysis of Singapore Telecom, Accessed on: 23 January 2018, Accessed from: https://business-strategy-competition.knoji.com/external-analysis-of-singapore-telecom/