Global Marketing: Market Entry Plan for Telstra in Singapore

The report discusses the market entry plan for Telstra in Singapore. It includes an overview of Telstra, business objectives, mission and vision statement, SWOT and PESTEL analysis, market analysis, Porter's Five Factors, and competitor analysis.

Running head: GLOBAL MARKETING
Global Marketing
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
The aim of the following report is to demonstrate the various important issues in the global
expansion of the organizations. The chosen organization for this paper is the Telstra
Corporations of Australia. It has been assumed in this report that Telstra will be expanding
their business into the Asian country of Singapore. The overview of the company has been
given along with the business objectives and the mission and vision. The purpose and values
can be clarified through this section. The environmental analysis of the organization Telstra
has been done also through its internal and external business environment. The competitor
analysis has been provided to assess the risks they might face while expanding into the
market. The five forces analysis by Michael Porter has been applied as well. Apart from that
the best suitable market entry mode for Telstra has been suggested when they will tap into the
Singapore market.

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Table of Contents
Introduction................................................................................................................................3
Overview of Telstra....................................................................................................................3
Business objectives....................................................................................................................3
Mission and vision statement.....................................................................................................4
SWOT analysis...........................................................................................................................4
PESTEL analysis........................................................................................................................6
Market Analysis.........................................................................................................................8
Porter’s Five Factors..................................................................................................................9
Threat of new entrants............................................................................................................9
Threat of substitutes...............................................................................................................9
Bargaining power of suppliers...............................................................................................9
Bargaining power of the buyers...........................................................................................10
Industry Rivalry...................................................................................................................10
Competitor Analysis.................................................................................................................10
Market entry strategies.............................................................................................................11
Marketing strategy...................................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14

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Introduction
The following paper discusses about the market entry of the Telstra Corporations in
Australia. The organization is one of the largest organizations in Australia regarding the
telecommunications. The organization builds and sells the various types of mobile phones,
provides the internet access to the users and other products and services. The aim of this
research would be to prepare the plan for the market entry of Telstra into Singapore market
by going through the business environmental factors and developing the proper marketing
plans (Baldwin & Yan, 2012).
Overview of Telstra
The organization serves in the telecommunications industry and it is considered to be
the largest player in that industry (Telstra.com.au, 2018). In order to proceed in a different
global market, the organization will need to make some plans and strategies by which they
can expand into Singapore successfully. The company has around 150 subsidiaries all around
Australia and it will be much profitable for them to tap into the Asian market through
Singapore. The headquarters of this organization is located at Melbourne in Australia
(Telstra.com.au, 2018). The organization will like to make the proper strategies by which
they can assess the consumer behavior of Singapore and provide them with the best products
and services indeed.
Business objectives
The business objectives of the company are to make the proper strategies by which
they can provide the customers with the best services and products. They only want to
simplify their product offerings. The authority of the organization will surely look to reduce
the problems of the customers through their potential feedbacks. They would also focus on

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improving their portfolio management and stressing on their cost reduction programs. The
standalone infrastructure they want to implement will surely eliminate the problems the
customers face in the current times (Baldwin & Yan, 2012). When they will expand into
Singapore it will be very important for them to discover the potential opportunities in terms
of comparing with their local competitors in Singapore. They will like to provide the
customers with the various simplified products with the new innovated model. They will also
like to extend the 5G network in Singapore as well.
Mission and vision statement
The mission statement for Telstra is ‘To create a brilliant connected future for
everyone’.
The Telstra Corporations always wants to assure their customers that they care for
them, and they are looking to work together collaboratively to achieve the future success
(Solomon et al., 2014). This factor will be highly important for Telstra to be successful in an
Asian country like Singapore. It is because there are already some tough competitors at place
in the Asian telecommunications market from the countries like China and Japan. They are
quite aware of the fact there strategies are quite complex and they will have to make them
simple so these strategies could be assumed by the people of Singapore (Campbell, Coff &
Kryscynski, 2012). They believe that they have the proper courage to take the challenges in
the foreign markets in Singapore and their employees are also ready to take the proper
responsibilities as well (Baldwin & Yan, 2012).
SWOT analysis
Strengths
 Telstra has a strong market position
Weaknesses
 The customer service of the company

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with a very high market reputation.
This will attract the attention of the
customers (Fifield, 2012).
 They are very much updated and they
have invested in the latest
technologies.
 They are strategically much different
from their competitors since they are
the market leaders in the
communications network.
 The process of tapping into new
markets has given them a huge
advantage (Solomon et al., 2014).
 They have quite good relations with
the regulatory bodies.
has not always been satisfactory
enough.
 They have been suffering from the
issues of latency than their big rivals
like Vodafone.
 The price of the products and services
of Telstra are generally higher than
their competitors (Armstrong et al.,
2015).
Opportunities
 This venture into Singapore will
always give them a proper
opportunity to increase their business
profits.
 If they attempt to step into some new
business and projects it will definitely
result in the rise of their market
shares (Armstrong et al., 2015).
 They must shift their focus on
Threats
 The mobile technology market has
been saturated as of late and this has
been a threatening factor for the
organization to thrive in different
markets as well (Fifield, 2012).
 The telecommunications compliance
has been much complicated in
Singapore. This might raise a concern
among the managers because the local

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improving their services for the
customers and simplifying their
services in the best manner
(Campbell, Coff & Kryscynski,
2012).
competitors always have an upper
hand in this matter (Armstrong et al.,
2015).
 The technology has been increasing
rapidly and this has been a huge
concern for the operators who have
not updated their services yet
(Wagner & Hollenbeck, 2014). This
might pose a serious threat in the
process of succeeding in a blooming
market like that of Singapore.
PESTEL analysis
The different criterion for working successfully in the Singapore market and
increasing the profits will be discussed in this section.
Political Singapore is considered to be a politically
stability. This will be helpful for Telstra to
operate in this country. The business negotiation
policies and compliances are less (Fifield, 2012).
Telstra will not be facing many difficulties in
operating in this country since the interference
from the government bodies will be less (Wagner
& Hollenbeck, 2014). The changes in policies
might affect the business operations of the

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company in great many ways as well.
Economic The economic problems have been noticed in
Singapore for many times. The GDP of the
Singapore is not very high and this has impacted
heavily on the business success of Telstra.
However, Telstra might face the problems of
labor shortages as well (Jurevicius, 2013).
Another issue in the business success of Telstra
in Singapore can be caused by the rise of the
labor costs. They will have to use the labor of
Singapore to get rid of the financial troubles
while operating in Australia (McAuliffe, 2015).
Social The social issue like the approach to the business
will also have an impact on the business as well.
The employees of Singapore are completely
contrasting with that of Australian individualism.
The employees of Singapore generally believe in
the collectivist approach as they stress on the
collective success of the organization (Jurevicius,
2013).
Technological Singapore has been very much efficient in the
technological advancement. This will be a huge
advantage for Telstra to capitalize on this
opportunity. The technological innovation will
play a huge part in this context and Telstra will
benefit from this aspect in a huge manner (Fong
et al., 2014). The networking systems could be

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upgraded from time to time by Telstra for the
overall benefit of the customers. This great
infrastructure will benefit the customers in
numerous ways and pave the way for Telstra to
succeed (McAuliffe, 2015).
Environmental The environmental factors will have to be kept in
mind and Telstra should take part in the Go
Green initiatives (Fong et al., 2014). They should
use the renewable energy for the preparation of
their products and services.
Legal The government legislations of Singapore should
be obeyed by Telstra while doing their business
in the country (Hill & Brierley, 2017). The cross-
border laws and policies should be maintained by
Telstra in the best ways to avoid any kind of
penalty being imposed on them.
Market Analysis
The nation of Singapore in the recent times has emerged as one of the major
technological hubs of the world and it is seen that more than 93% of the people take the help
of one form of technology or the other for the conduct of their daily activities (Gov.sg, 2018).
Thus, it can be said that the organization under discussion can use these 93% of the people as
their potential customer base. However, Singtel holds more than 45% of the market share of
the nation and thus the organization would have to redesign the products or the services
offered by them not only in terms of quality but also in terms of pricing as well (Gov.sg,
2018).

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Porter’s Five Factors
Porter’s Five Factors is a framework which helps an organization to analyze the
competition that an organization faces in the business market of a particular nation (Weaven
et al., 2014). The analysis of the competition faced by an organization is important since it
helps an organization to formulate the necessary business strategies which are essential for
the mitigation of the same (Baker, 2014). An analysis of the organization under discussion
here is likely to reveal the following the facts-
Threat of new entrants
The organization under here is one of the largest ones of the world and as a matter of
fact because of the high quality of products and services offered by them to the customers
enjoys a positive brand or market image (Telstra.com, 2018). On the basis of this fact, it can
be said that the organization faces a very low level of threat from the entry of new business
enterprises in the business market of Singapore.
Threat of substitutes
The quality as well as the affordability of the products and the services offered by the
organization has made it a favorite brand of the customers. In addition to this, the customers
are likely to incur a substantial amount of capital if they want to switch over from the
products or the services offered by the organization to its competitors (Daunt et al., 2017). On
the basis of this fact it can be said that the organization faces a very low amount of threat
from the various other organizations which are offering the same kind of products or services.
Bargaining power of suppliers
The organization Telstra in order to reduce the bargaining power of the suppliers who
are associated with them takes the help of multiple suppliers (Scarborough, 2016). This not
only reduces the bargaining power of these suppliers but at the same time also ensures the

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timely delivery of the raw materials that are needed for the manufacture of the products or the
services offered by them to the customers (Brown, 2016). Thus, it can be said that the
bargaining power of the suppliers who are associated with the organization is very low.
Bargaining power of the buyers
The nation of Singapore is a developed one yet there are very organizations in the
nation like Singtel and others which offer the same kind of products and services that the
organisation Telstra offers to the customers (Gov.sg, 2018). However, at the same time, the
price of the products or the services offered by them is very high because of the oligopoly
nature of Singaporean business market (McColl-Kennedy et al., 2015). Thus, it can be said
that the bargaining power of the customers in the nation of Singapore is very low.
Industry Rivalry
Singapore has an oligopoly business market which means that the business market of
the nation is being monopolised by one organisation, namely, Singtel (Gov.sg, 2018).
However, apart from this organisation there are no other significant organisations in the
nation which offers similar kinds of products or services to the customers. Thus, it can be said
that although the business market of the nation has already been monopolised yet Telstra can
make significant inroads into the same through the use of effective business strategies.
Competitor Analysis
Singapore has an oligopoly business market and one single organisation, namely,
Singtel holds more than 45% of the market share of the entire business market (Gov.sg,
2018). It is pertinent to note that the organisation Singtel offers almost same kind of telecom
and other services to the customers and at the same time the price charged by them is on par
with the current market standards. In addition to this, there are other organisations in the

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business market of the nation however the quality of the services offered by them is not very
high and at the same time the price charged by them is also very high.
Market entry strategies
Some of the important market entry strategies are Direct Exporting and Franchising.
Through the first market entry mode strategy, the company will have to hire some agents by
whom they will sell their products and services through the direct selling process (Fong et al.,
2014). These agents and distributors will surely represent their companies through this
process. These agents will be working with the company in a very close manner that will help
to attract the interests of the customers. Telstra might find this process very attractive since
this will help them to expand their market throughout Singapore because of the economic
infrastructure of Singapore. Thus Telstra might face some problems while implementing the
Direct Exporting strategy.
On the other hand, it can be said that Telstra is doing good amount of business
through the franchising system in Australia. This will have a positive impact on Telstra if
they opt to adopt the same strategy in Singapore as well (Wu, 2015). If they implement this
strategy they will surely get more information on the overall Asian market. They can fulfill
the necessary desires of their customers if they apply this strategy. Telstra will get the
opportunity to make an analysis of the different individuals in Singapore and cater to their
needs prominently. The franchising method will be the most appropriate to apply in this
context since Telstra will acknowledge the best policies and methods implemented by the
other big organizations. This will be highly beneficial for the organization for Telstra for a
quick success in Singapore (Wu, 2015).

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Marketing strategy
The SWOT analysis clearly reveals that the organization is likely to face a high level
of business competition in the concerned host nation. However, at the same time, it can be
said that the organization can mitigate this high competition through the effective use of the
business opportunities presented by the business market of the host nation. The primary
marketing objective of the organization for the first 12 months of their business operations in
the host nation will be increase their sales by 10% and also to establish a stable customer
base. The below given marketing mix provides an overview of the recommended strategies
that the organization can utilize for the marketing and also the promotion of the products or
the services offered by them to the customers of Singapore-
Product  Telstra can offer the same kind of
telecom services that it provides to
the customers of the customers.
 The use of innovations to modify the
nature of the services offered by them
to the customers would help them in a
significant manner.
 Use of the strategy of product
differentiation and product adaptation
Price  Singtel has already monopolized the
business market of Singapore and the
quality of the services offered by
them is on par with Telstra. Thus, the
organization in order to have a better
chance of success would have to use

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the cost leadership strategy.
 The use of this strategy would help
the organization to offer better quality
services to the customers at affordable
prices (Kowalkowski et al., 2015).
Promotion  The use of digital media for the
process of promotion is likely to help
the organization in a significant
manner (Camillo, Holt & Marques,
2014).
 Use of campus events and other kinds
of promotional events would also help
the organization in a significant
manner (Baker, 2014).
Place  The organization can begin by
providing services in the major cities
of Singapore however after
establishing a stable customer base in
these cities the organization can
expand into the remote areas of the
nation.

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Conclusion
To conclude, the business world of the contemporary times has become much more
complex than that of the earlier times. This can be attributed to the various kinds of
innovative measures and strategies followed by the various business enterprises. Furthermore,
the concept of marketing has the become the focus of the different organizations and it is seen
that the organizations not only take the help of digital marketing and others for the effective
promotion of the products or the services offered by them to the customers. In addition to
this, for the pricing the strategy of cost leadership has also become important and taking the
help of this strategy the various organizations offer high quality products or services to the
customers at comparatively lesser prices. Moreover, market entry strategies in regard are also
important and to a great extent determine the future prospects of an organization.

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