Singapore Market Analysis and Expansion Strategy for Vege Chips

This report provides a comprehensive analysis of the Vege Chips Company's potential for expansion into the Singapore market. It begins with an executive summary outlining the report's objectives and structure, followed by a background on the Vege Chips Company and the business environment in Singapore. The core of the report focuses on a PESTEL analysis, examining the political, economic, social, technological, and legal factors influencing the business. The analysis highlights Singapore's favorable business environment, including its strong economy, political stability, and technological advancements, suggesting that the country is suitable for Vege Chips' operations. The report also offers strategic recommendations, such as utilizing appropriate marketing tools, adhering to Singapore's regulations, and targeting the 25-35 age group. This report provides a detailed overview of the market, the company and the environmental factors that influence the company's potential for expansion.

Running head: VEGE CHIPS IN SINGAPORE
VEGE CHIPS IN SINGAPORE
Name of the Student
Name of the University
Author Note

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Executive Summary
The international marketing can be rightfully described as a comprehensive subject who needs to
be experienced by all the enterprises. In association with this, it becomes very integral for the
business to ensure that they are efficaciously able to engage in the domain of international
marketing which would allow them to engage in larger sales. The report follows a structured
format whereby the Introduction will discuss the overall structure and objective of the paper
which will then be followed by the background of the company. The environment of Singapore
as a business venture has also been discussed. The main section of the report discusses the
environmental factors which influence the business operations and might influence the marketing
campaign of the firm. It was found that the location of Singapore which has been selected for the
Vege Chips will be suitable for its overall operations and in consideration of this, the enterprise
will benefit from the budding economy. It was found from the analysis that the socio-cultural and
technological environment of Singapore will be suitable for the extension of the Vege Chips as
an enterprise. Certain recommendations based on the same have also been provided which have
been highlighted as follows:
1. The Vege chips would be required to make use of the right kind of marketing tool.
2. They would be required to abide by the political and legal regulations of Singapore as
they are very strict.
3. They would be required to target the age group 25 to 35 years of age and market the
appeals of the product.

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Table of Contents
Introduction......................................................................................................................................3
Vege Chip Company....................................................................................................................3
Chosen country: Singapore..........................................................................................................4
Discussion of environmental factors...............................................................................................5
Political factors affecting the country..........................................................................................5
Economic factors affecting the country.......................................................................................6
Social factors affecting the country.............................................................................................8
Technological factors affecting the country................................................................................8
Legal factors affecting the country..............................................................................................9
Conclusion.......................................................................................................................................9
Recommendations......................................................................................................................10
References......................................................................................................................................11

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Introduction
International Marketing can be rightfully defined as the procedure by which any
enterprise intends to expand its operations successfully into the different countries and aims to
attain the entire global market as its performance base. However, not every country present in the
globe can be mentioned to be same and each country has its specific features as well as aspects
which makes its overall performance unique in the long run (Ansoff et al, 2018). The report has
been prepared with the motive of highlighting the various marketing aspects about the enterprise
and country. The firm which has been chosen for the analysis can be stated to be the Vege Chip
Company and the country which has been chosen for the analysis can be mentioned to be the
Singapore (Bryce, 2017). Hence, the report has been prepared with the aim of highlighting the
enterprise background along with the overall background of Singapore which initiates the
marketing campaign. Hence, this report will follow a comprehensive layout whereby the
background of the enterprise will be provided and this shall be followed by the analysis of the
Singapore as a viable market. The PESTEL factors pertaining to the marketing campaigns and
related designs of the firm will be critically discussed, this will be followed by a certain set of
recommendations based on which, the company will be able to perform well.
Vege Chip Company
The Vege Chip Company can be described as the market leader which produces Gluten
free chips in Australia. The enterprise prides itself in providing gluten free snacks which taste
well and are made free from eggs along with various other genetically modified ingredients such
as the preservatives and the artificial coloring (David & David, 2019). The factory of the
enterprise also tends to maintain a strict set of rules and food safety along with quality
procedures which assist an individual in snacking healthy and eating in confidence. The Vege
Chip as an enterprise began its operations 25 years ago and debuted as a Gluten free snack.
Initially the product was sold at the Gold Coast as well as the Byron Bay markets and with time
it started attaining considerate popularity in Australia and supplied goods to all major
supermarkets in the Australian market (Weforum.com ,2020). The firm also distributes
internationally to nearby markets. The firm has become very popular at present and has become a
household name for the Gluten Free snacks. The enterprise has been able to maintain its brand

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positioning since the year 1990. The enterprise began its operations from a small commercial
kitchen which was received well by the different customers who then became good fans of their
snacks and helped the enterprise to become a successful snack brand (Frynas & Mellahi, 2015).
In consideration of this, it can be essentially mentioned that, the enterprise has undertaken
various modern machinery as well with the help of which the delicious snacks have been
prepared.
Chosen country: Singapore
The Singapore is located at a strategic location into the Asia Pacific and the country has
experienced one of the most emerging economies in the last 50 years. With a sound growth rate
of 6.4 percent from the year 2009 to the year 2014, the enterprise has witnessed high productivity
levels along with a sound workforce. In line with this, for the past 3 decades, the Singapore as a
county has been able to grow to a great extent and expand to various countries such as the China,
Hong Kong, Kore and other such countries (Gillespie, 2015). The Singapore is a business
friendly country and is present as the best country in the World Bank`s Ease of Doing Business
list. The enterprise has been ranked second in the Global Competitive Index. The tax rate of the
enterprise can be mentioned to be relatively low and a strong support for the investment in
technology has been achieved. The country has over 30000 international companies located in
Singapore and acts as a hub for various enterprises to commercialize operations
(Weforum.com ,2020).
Even historically, the country has been politically stable and has a transparent regulatory
framework. The enterprise tends to welcome the foreign investments so that it is able to perform
well in the manufacturing as well as the service industry. Singapore can also be understood to
have the world`s developed infrastructure and communications technology (Ginter, Duncan &
Swayne, 2018). The crime rate is very low and there exists strong enforcements of various IP
laws which makes the country economically safe and provides a sound investment opportunity.
The international trade is at a high in the country and the value of the Foreign Direct Investment
inflows in the country have grown to a great extent from $60000 in 2010 to $120000 in 2019.
The reason why the trade is preferred is due to the tax incentives, regulatory system, political
stability and other related aspects (Hill, 2017). Hence, this can be stated to be the reason why

5VEGE CHIPS IN SINGAPORE
the Singapore as an enterprise has been chosen for the purpose of the expansion. Hence,
Singapore has become a sound business hub for both international and local enterprises.
Discussion of environmental factors
In order to examine and verify the manner in which the Vege Chips enterprise will be
able to expand its operations successfully in the Singapore market or not and to effectively
analyze the effectiveness of their planned marketing initiative, this section of the report will
highlight the different environmental factors such as the Political, social, economic, financial,
legal ,technological and environmental aspects about the company which will then assist in
understanding the way in which the marketing campaigns will be successful in the long run or
not (Hitt & Duane Ireland , 2017). The PESTEL analysis is a tool which will be useful in
gaining an understanding of the different environmental factors which generally influence the
operations of the enterprise and the related corporations. Hence, the factors have been discussed
as follows:
Political factors affecting the country
The political factors can be referred to as those factors which generally relate to the
different policies which are formulated by the government and are essentially concerned with the
aspects being related to the government regulations and related aspects. As the Singapore as a
country is a parliamentary democracy whereby the President is considered to be the head of the
state and the country can be mentioned to be the most stable countries present in the South East
Asia. The country is also a member of the IMF, the World Bank, ASEAN, APEC, the
Commonwealth and other such prestigious institutions (Kotler et al., 2018). The primary focus of
the government always lies on attracting the foreign direct investment which has been the key to
success for the enterprise. In line with this, the enterprise is able to maintain very sound relations
with the neighboring countries like the USA, China and other similar developed countries.
Although North Korea is not able to maintain sound relations with the different enterprises,
however, this has not been the case with Singapore and the country has been successfully able to
maintain sound and active relation with the North Korea as well. In association with this,

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Singapore has been able to maintain sound corruption maintenance as well. This simply means
that, the country ranked the in the list of the least corrupted country in the globe with ample
scope for business expansion (Lasserre, 2017).
However, one backslash which the country has received is the restrictions on the basic
restrictions on the basic rights of the human rights such as the right of the freedom of expression,
peaceful assembly and other such rights are not provided to the different individuals which make
the operations limited (Meyer, Neck & Meeks, 2017). Hence, in consideration of this, the Vege
Chips company can learn that although the establishment of the business might be considerably
easier in the country but in regards to the marketing activity, the firm would be required to see to
it that it is successfully being able to ensure all the means of communication are within the
prescribed protocol of the country and in reference to this, the Vege chips company does not
necessarily face any backslash from the government as this stands as one of the most important
factor affecting the enterprise.
Economic factors affecting the country
The economic factors can be essentially mentioned to be another set of factors which
influence the operations of the enterprise and in consideration of this it becomes very relevant to
ensure that, the firm is being able to engage in a strong association with the various economic
factors. The economy of Singapore can be mentioned to be the 38th largest economy present
around the globe. In association with this, it becomes critically crucial to ensure that, the country
has a strong base of educated and productive work forces. According to Morden (2016), these
countries can be mentioned to be the four Asian Tigers such as the Hong Kong, Singapore, South
Korea , Taiwan and others.

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Figure 1: The Singapore Performance overview 2019
(Source: Weforum.com ,2020).
According to Morschett, Schramm-Klein and Zentes (2015), the Singapore as a firm has
witnessed considerate growth in the coming few years. In line with this, it becomes critically
crucial to understand that its GDP was $323.9 billion with the $94105 GDP per capita while the
GDP in 2019 was expected to be around $359.6 billion. The unemployment rate of the country
has become considerably low. In reference to this, the unemployment rate may be regarded as
overemployment in some countries, but the corporate tax is being charged at a flat rate of 18%.
Hence, the country of Singapore is often viewed as a tax heaven as it offers low taxes and
limited incentives to the different foreign investors. In line with this, the country is the largest
recipient of the foreign direct investment in the globe. The country of Singapore can be
understood to be very popular in regards to the exports as well whereby the country is the
globe`s 14th largest export economy as present around the world. The top exports of the
enterprise comprise of the integrated circuits, computers, the gas turbines and others. Many
analysts see Singapore as a tax heaven as it offers low taxes and other incentives to foreign
investors (Moutinho & Vargas-Sanchez, 2018). No wonder why it is one of the largest recipients
of foreign direct investment (FDI) in the world. In consideration of this, it becomes effective to
understand that, the Vege chips enterprise would be essentially required to see to it that, they are

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being able to take into consideration the various market conditions and other related aspect with
the help of which, they are being able to expand their chips operations successfully. With
consideration to this, it becomes relatively crucial to ensure that, the Vege chips needs to take
into consideration these economic conditions so that they are successfully being able to perform
well.
Social factors affecting the country
The Singapore as an enterprise can be mentioned to be the wealthiest nations present
around the globe and is a multi-ethnic country, In consideration of this; Singapore has made
remarkable progress over the last few years and has experienced considerable space constraint as
well. The country can be understood to be a multi ethnic country with a total population of 5.64
million as of 2018. The beliefs of the different individuals of Singapore can be understood to be
very conservative in nature and people o various religions such as the Taoism, Buddhism, Islam,
Hinduism and Christianity (Noe et al., 2017). Hence, as the target audience comprises of these
different groups of individuals who have been working together to attain the enterprise goals, it
becomes very crucial for the organization to see to it that they are being able to engage in
activities and offering the different cultured customers with an adequate and sound offering
which would thereby assist them to perform considerably well. By looking out for such
organizational and country specific factors, the firm will be able to engage in an effective
relationship and association with the enterprise successfully (Weforum.com ,2020).
The problems which are being paid by the country as a whole can be mentioned to be the
rising cost of living, high divorce rates, occasional tensions between various ethnic groups which
exist and lastly, the changing nature of the environment (Owler.com ,2020). Vege chip company
will have to undertake considerate measures in order to see to it that it is being able to address
these social cultural challenges and is being able to contribute adequate time to understand these
aspects.
Technological factors affecting the country
The Singapore can be referred to as one of the most advanced countries present around
the globe and the most innovative country present in Asia. The IT infrastructure of the country

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can be mentioned to be on the leading and the internet of the enterprise can be stated to be the
fastest around the globe. The Singapore as a country is regarded as the Asian technological
capital. The global business giants such as the Amazon, the IBM and other countries have been
undertaking strategies to ground break various new projects before their commercialization
around the globe (Rothaermel, 2017). As 80 out of the 100 tech firms have their presence in
Singapore, the target segment of the country can be taken to be very attractive for the various
enterprises which are present around the globe. It is for this reason, expanding the Vege chips to
this country can be mentioned to be rather attractive. In consideration of this, it becomes rather
effective for the enterprise to ensure that they are being able to make use of the advanced
technology in order to be able to expand the operations to Singapore and conduct the different
marketing campaigns and related activities in the country. There are various mediums which can
be essentially made use of by the Vege chips such as social media marketing, Artificial
intelligence and other such tools which will help it to become popular in the long run.
Legal factors affecting the country
The legal factors which affect the operations of the enterprise can be referred to as
another set of factors which influence the overall operations of the firm. In line with this, it
becomes essential to ensure that, Singapore has a strict set of laws in regard to the privacy of the
different individuals (Weforum.com ,2020). In consideration of this, it becomes relatively
important to mention that, the laws in regard to the vandalizing, littering, elevators, Wi-Fi and
other legal regulations are quite strict. There are certain employments laws also present in the
country which may influence the operations. In consideration of this, the enterprise Vege chips
would be required to ensure that, they are successfully being able to engage in lawful operations
(Souchon et al., 2016).
Conclusion
Therefore, the given report outlined the different issues which may act as a critical factor
and influence the operations of an enterprise as a whole. The report followed a structured format
whereby the operations of the Vege chips as an enterprise was highlighted. This was then

10VEGE CHIPS IN SINGAPORE
followed by the analysis of the Singapore as a viable country for expansion. In consideration of
this, the PESTLE analysis was used as a tool to examine the different ways in which the factors
like Political, social, Technological and Economic aspects affect the enterprise and may have an
influence on the marketing campaign. The report helped in finding the manner in which the Vege
Company can expand its operations to Singapore and found that the social-technical environment
of the country along with the culture of the country is very supportive and will assist in the
business expansion. Certain recommendations which can be adopted by the firm have been
provided.
Recommendations
4. As the internet and Information technology has become very advanced, The Vege chips
can make use of this advanced technology in order to undertake critical decisions with
respect to the social media marketing and related tools (Vegechips.com ,2020). With
respect to this, it becomes effective for them to understand that in case they are required
to undertake the operations effectively, they need to make use of the right kind of
marketing tool and appeal to the right crowd.
5. The political laws and legal regulations are largely relaxed in Singapore and with respect
to this, it is integral that the firm would be essentially required to see to it that they are
being able to undertake actions and abide by all the regulations relevantly so that they are
being able to attain success and carryout operations peacefully (Vellas, 2016).
6. Additionally, by examining the social and cultural environment of the country, it can be
sufficiently mentioned that, the working population in Singapore can be stated to be very
high and these working individuals belong to the age group 25-35 years (Zoominfo.com,
2020). Hence, the target market for Vege is quite established and by using the right
means, it will be able to perform well.

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