External Environmental Analysis of Singapore for Flirtey Drone Delivery Solutions Provider

Running head: MKTM028 STRATEGIC MARKETING
MKTM028 Strategic Marketing
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1MKTM028 STRATEGIC MARKETING
Executive Summary
In this paper, Flirtey, a drone delivery solutions provider is considering coming to Singapore and
setting up business. As part of this paper, external environment of Singapore with regards to the
attractiveness of that country to the company is provided. At the beginning of the paper, the
theoretical implication of the PESTLE analysis is given along with advantages and
disadvantages. PESTLE analysis is helpful to gain the idea of the external environment when an
organisation strives to visit another country. On the other side, PESTLE analysis may not help
the company as the analysis solely depends on the assumptions. The political condition of
Singapore is stable and Singapore government allows using of drone for commercial purposes.
Tax rate for doing business in Singapore is also low and the security is high. Economic condition
is Singapore is also good and drone delivery industry is flourishing and in the next five years,
Singapore will reach record high in drone delivery. In Singapore, many of the technology giants
have their offices and whole Asia-Pacific region is managed in Singapore. Technological
development is subtle and developed in Singapore. Therefore, Flirtey should consider drone
regulation in Singapore, Flirtey can register the business as sole-proprietorship under FDI and
Flirtey needs to take the strategy of differentiation in order to have a competitive advantage.

2MKTM028 STRATEGIC MARKETING
Table of Contents
PESTLE Analysis and its Advantages and Disadvantages..............................................................3
External environmental analysis of Singapore................................................................................4
Political factors of Singapore.......................................................................................................5
Economic factors of Singapore....................................................................................................6
Technological factors of Singapore.............................................................................................7
Recommendations and Conclusion..................................................................................................8
Reference List................................................................................................................................10

3MKTM028 STRATEGIC MARKETING
PESTLE Analysis and its Advantages and Disadvantages
PESTLE analysis plays the role of analytical tool to do the strategic business planning.
PESTLE analysis helps to analyse the macro-environment factors which may affect the strategic
planning. Macro-environmental factors influence on the organisation and the organisations do
not have the direct control over it (Team 2013). Macro-environmental factors have the long-term
impact on the organisation and the influence of the certain external factors can cause the severe
consequences for the organisation. PESTLE analysis also helps to clarify changes needed within
the organisation and recognise the potential options (Zelengera et al. 2014). PESTLE analysis is
the acronym of six different factors, political, economic, social, technological, legal and
environmental factors. The organisations do PESTLE analysis to have the decisions on
understanding of the changes which may be happening in the industry. The organisations get to
know about the changes helps them in making the better decisions for the business. Above all,
management of the organisation analyses the external environmental factors of the chosen
country in which the management is planning to expand the business. PESTLE analysis helps to
scan the strengths and weaknesses of the six different external factors of the industry. According
to Makos (2015) PESTLE analysis helps in making the decision on the new markets whether or
not this particular market holds potential for making a profitable business.
Advantages of PESTLE analysis:
PESTLE analysis provides an easy-to-use and simple framework for analysis of the
external environment of the industry. In addition, PESTLE analysis involves in the cross-
functional expertise and skills which provides the idea of buyers' socio-cultural perspectives and
the economic conditions of the industry. As opined by Team (2013), PESTLE analysis assists to