Analyzing Yanmar Aisa (S) Corporation Pte Ltd: Pestle Analysis and Porter's Five Forces Model

Introduction
This report brings out an analytic discussion of Yanmar aisa (s) corporation Pte ltd by
using two important tools named as porter`s five forces model and Pestle analysis. The
company sells and manufactures air conditioning system and other related products. Yanmar
Aisa (Singapore) corporation Pte ltd provides sales and after sales-services of diesel engines
for industrial, driving, power generation system, remote monitoring systems and marine
products to the distributors in different parts of the world (YANMAR, 2019). The company
strives to offer life admirable life cycle value to its customers by providing products and
services. The company and its distributors undertake those activities that can enable the
customers to trust in products and services. Apart from this, all the types of marine
commercial such as marine commercial such as propulsion engine and auxiliary engine with
both high and medium speed. The Japan Quality Assurance Association awarded the
company with ISO 14001 certificate for all the small engines it produces (YANMAR, 2019).
Moreover, the company became the first enterprise who was awarded for marine diesel
engine by the international Maritime organisation. The company was established in 1989,
which is a Singapore based company (YANMAR, 2019). Finally, the company undertakes to
give certain recommendations by providing three generic business strategies. The
consolidated statements for the financial year depicts that the company has generated a
revenue of 749353 million yen in 2016 and 766176 million yen in 2017. The net profit for
2017 was 10843 million yen (YANMAR, 2019).
Pestle analysis
Political factors- The political environment of Singapore is stable. According to facts
of political and economic risk consultancy (PESRC), it is seen that country enjoys low
political risk and it encourages investment. Since after independence, due to relative stable
political conditions, the company is able to make business improvements. As the country`s

sector of operations are more based on petroleum refining industry and the country has a
potential to attract investment (Markets and markets, 2019). The government has also
launched an industry transformation programme in 2017, which will contribute to next phase
of development. In addition to this, under quality growth programme, the company will grow
and drive new values (Yanmar, 2017).
Economic factors- In last few years, Singapore has shown incredible economic
growth. The country is considered as high-income economy. It is seen that the country
promotes two sectors named as pharmaceutical and petroleum industry and these industries
have the potential to attract investment. As political risk is low which helps in accelerating
the economic boom, the Yanmar aisa (s) corporation Pte ltd have favourable conditions to
grow. The industrial sector of the company contributes nearly 24.5 percent to GDP in 2017
and 18.3 percent to GDP in 2018 (Lucintel, 2017). In order to increase the productivity and
the effect of transformational programs, government collaborated with the industry so that it
can identify the challenges and construct the solutions to transform accordingly.
Social factors- The Company aims to offer excellent life cycle values to the
customers with the help of services and products. The country`s population still rely on
traditional values but younger generation has the tendency to follow the western values. As
business, expect that there should be higher purchasing power of customers. The company
provides marine commercial speed engines that need engineering and technical services
(Mindtools, 2019). The reports suggest that local people dislikes blue collar jobs. Below is
the demand changes in the industry-

(Source: Maximize market research, 2019)
Technological factors- Availability has eased communication that increases the
connectivity. Technology advancement has huge significance in YANMAR AISA (S)
CORPORATION PTE LTD`s operations because the company engages in marketing of
diesel engines. E-commerce, eB2C model and widespread IT infrastructure has flourished its
operations (Lucintel, 2017). The country`s technological conditions will transform the digital
economy as the government of Singapore supports innovation, connected technology
infrastructure, and a good business environment. The company should undertake to establish
the aquaculture technology, which is capable enough in delivering a safe, secure, and stable
food supply. While considering the aquaculture technology, highly profitable oysters and
aquaculture can even produce on the surface or tidal flats with the help of oyster spats and
seedlings (Yanmar, 2017). The company`s technology is applied to cultivation of oyster that
is found in japan. Most importantly, the company has to apply science so as to enable their
marine engines to carry those heavy vessels in the ships (Chng, 2016).
Legal factors- the company engages technical and engineering services and the
government believes that electronic commerce needs strict rules and regulations. Some of the
important legislations include electronic transaction act, labour rights, intellectual property