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Sample of assignment: Marketing strategies of SingTel
1. Situational analysis
1.1 Company and product background
1.1.1 Company introduction
As one of the leading major communication services providers in Asia covering fixed line, mobile, data, internet and TV, SingTel is still the largest telecommunication company in Singapore though the advantage over the other competitors has been continuously decreased by the hyper competition in the industry. With 8% growth in term of revenue in Singapore, this growth even didn’t match the consolidated revenue growth of 13% suggesting that the home market did not provide enough the momentum for the growth. But still as the figure below show, Singapore is still one of the major stable markets that provide large sum of revenue and cash inflow to the company as there is risks in the investment in other regional mobile markets such as India. So it would be of strategically importance to seize the opportunity provided by the new fiber network and continue to develop the Singapore market.
Figure 1.0 EBITDA by markets (Source: SingTel Annual report 2009-2010) (see also appendix)
1.1.2 Product introduction
The optical fiber broadband that SingTel currently provides initiates from the concept of building up Singapore’s Next Generation Nationwide Broadband Network (Next Gen NBN) since the middle of 2010 with the expectation to complete the infrastructure by 2012 and it is based on the high quality fiber platform operated by OpenNet Pte Ltd, a joint ventures by four partnership companies – Axia NetMedia (Axia), Singapore Telecommunications (SingTel), Singapore Press Holdings (SPH) and Singapore Power Telecommunications (SPT) (OpenNet.com.sg 2010). The major innovative feature that the fiber network has compared with the current prevailing network, ADSL or Cable broadband, is that it will upgrade the broadband speed up to one Gbps or even more which facilitates service such as Internet Protocol TV, telemedicine, real-time simulation game and so on.
1.2 Macro-environmental analysis
1.2.1 Political factors
The government is playing one of the key roles in helping Singapore to grow into a bustling center in term of finance, trade, technology and manufacturing with one of the most stable political environments (Christopher 2007, p175), the importance of the government role could also be found in promoting the Next Generation Nationwide Broadband Network. As early as 1981 with great effort from the Singapore government the NCB (National Computer Board) was set up to enhance the nation’s competitiveness by exploiting IT in an information age. And the Singapore One which was designed to link businesses, schools and home throughout the country by national wide broadband network is the key component of the national IT master plan- IT2000 initiated by the NCB (Unknown 2008, p165). Now when it comes to the Next Generation Nationwide Broadband Network (Next Gen NBN) the government is still playing a positive role in putting forward the upgrade of the national network system.
1.2.2 Economical factors
Source: TradingEconomics.com 2011
Chart 1.0 Singapore historical GDP Growth Rate
Being one of the Four Asian Tigers, Singapore’s success has close relationship with its highly developed free-market economy in term of a higher per capita GDP than most developed countries. As shown in the chart above, soon after the breakout of the US led economy crisis in a worldwide scale the economy of Singapore managed to return to normal and even outperform the major economy giants by keeping a high GDP growth rate and according to the latest available data Singapore had maintain a 6.9% GDP growth in the last quarter of year 2010. With a free healthy market economy and based on the strong demand of high speed network connection it is fair to say that Singapore has the matured economy condition to build up the optical fiber broadband network.
1.2.3 Social and cultural factors
When Singapore has the economy condition and a vivid government that is anxious to upgrade its national network system to take the lead again be the first country to possess such a national wide optical network connection to increase the country’s core competitiveness while the country lacks of some other resources such as natural resources, another problem arises that is do the Singaporean really want and need such high speed network connection against the expected added cost? In the middle of last year, Neil Montefiore, the CEO of StarHub, another national network service provider rather than SingTel expressed the similar concern during an interview. He was quoted as saying “five percent of StarHub’s 408,000 Internet subscribers signed up for its 100Mbps Internet service, the fastest that it offers…speed is not the only factor that the customers consider and price does matter…” And it is well know that the major of Singaporean are good at calculating cost they pay against the benefits they gain, it is sure that some of them may not be willing to pay more to enjoy the ultra speed fiber network, though there may be uncertainties in the family users but still the plan will go on as Neil Montefiore said, the biggest change be on the 24,000 commercial buildings that the current network has not covered (Networkworld.com 2010).