Singtel's Market Position: A PEST and Porter's Five Forces Analysis

This report provides a comprehensive marketing analysis of Singtel, a Singaporean telecommunications company, utilizing PEST and Porter's Five Forces frameworks. The PEST analysis explores the political (telecommunication regulations), economic (globalization and investment), and social (cultural shifts and internet usage) factors influencing Singtel's market. Porter's Five Forces analysis assesses the threat of new entrants, bargaining power of buyers and suppliers, the threat of competitors, and the threat of substitute products. The analysis reveals that Singtel faces high competition and supplier bargaining power but benefits from low threat of new entrants and substitutes. Recommendations include adopting cost leadership and focus strategies, market development, and product development to enhance competitiveness and market share. The report concludes that Singtel has significant growth opportunities by implementing these strategies to address external challenges and capitalize on favorable factors.

Marketing Analysis

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Contents
Introduction...........................................................................................................................................2
Overview of the company......................................................................................................................2
PEST Analysis.......................................................................................................................................3
Porters Five Forces Analysis.................................................................................................................4
Recommendations.................................................................................................................................6
Conclusion.............................................................................................................................................7
References.............................................................................................................................................9

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Introduction
Marketing Analysis is the process of analysing the environment of the market in order to
achieve the success. The companies analyse the environment before developing the business
strategies. There are many external factors which affects the growth of the company in the
market. The companies use the different tools in order to analyse the situation of market and
these tools are PESTLE Analysis, SWOT Analysis and Porter’s Five Forces Framework.
PESTLE Analysis helps it to find out the external factors which affect the growth of the
company. SWOT Analysis is used by the company to determine the strength, Weaknesses
(Rothaermel, 2015). In this report, Singtel has been selected to analyse the market of the
company. PESTLE Analysis and Porters Five Forces Framework are the tools which are used
to analyse the market of the company. The company will be analysed with the different tools
and frameworks. At the end of the report, the recommendation will be given in order to attain
the high market share.
Overview of the company
Singtel Telecommunication Limited is a Singaporean telecommunication company. It is
largest mobile network company in the Singapore, which has 4.1 million subscribers. Earlier,
the company was popular with the name of telecommunication equipment until 1995. Singtel
is growing with the high rate and became the largest mobile network in Singapore. It is also
the second largest Australian telco. The company have the high market share in Singapore in
the different market such as 82% of fixed line market, 47% in the mobile market and 43% in
the broadband market. The company earned the $12.322 billion as the revenue in the end of
the year. The operating income and net income of the company is also $3.685 billion and
$2.84 billion in the end of 2017. The company grow in the market with the help of 25000
employees (Singtel, 2019).

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PEST Analysis
Political
It has been seen that the Singapore law restrict the tariffs which is set by the
telecommunication industry. Each and every country protects its citizens by certain
regulations. The act of Liberalisation and Privatisation of Telecommunications in Singapore
support the telecommunication industry. As per the developing technology, the
telecommunication industry is affected due to increasing demand of the customer. The trend
of the privatization, liberalisation, and deregulation in the telecommunication industry is
favourable factor for the telecommunication industry because it creates the opportunity for
the companies of industry. Liberalisation, deregulations are the factors which offer the better
quality of services at the high competitive prices. It has been seen that the Info-
communication Development Authority take a decision in order to provide the exemption to
the company for the Business and Government Customer Segment (Racz, et, al. 2018).
Singapore is largest country in the context of advanced information and communication
technology (Jarzabkowski, & Kaplan, 2015).
Economical
It has been analysed that the globalization is increases day by day. It opens the many doors
for the company for the company in order to expand the business at the international level
because it increases the trade and business in the market. The government of Singapore
invested heavily in the industry of telecommunication. In Singapore, the business sector will
grow continuously which increase the demand of telecommunication due to daily demand of
the internet. It is observed that the growth in the various sectors increase the demand for the
company. The economic condition of the telecommunication industry is strong that is an

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opportunity for the Singtel Company to grow in the same industry (Rastogi, & Trivedi,
2016).
Social
It has been seen that Singapore has the unique culture with the different ethnic groups such as
Malays, Chinese, Indians and Eurasians. The old people believe in their traditional culture but
the youth starts adapt the western culture. The young generation of the Singapore starts using
the internet and broadband for the study and the other external factors. It is a favourable
factor for the company due to increasing demand of consumer. The lifestyle of people is
changing due to change in technology; it is an opportunity for the company to invest the large
amount in the new products in order to provide the new services to the consumers (Morden,
2016).
Porters Five Forces Framework
The threat of new entrants
It has been seen that the company has lower degree of threat due to high capital requirement
to start the business. Telecommunication industry contains the machines and cables which is
very expensive that cannot be affordable with the lower investment. The company has the
benefit due to less threat of new entrants. It can easily focuses on the strategies to expand the
business in the market to attain the high market share. It also difficult for the new entrants to
beats the existing companies in the competition. The exiting companies of telecommunication
industry have high brand value in the market that is why it is difficult for the new entrants to
beat the competitors (McDonald, 2016).
Bargaining power of buyer

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It has been evaluated that the companies provides the similar services to the consumer which
is the main reason of high bargaining power of consumer. There are many companies provide
the similar services even outside the Singapore. The large number of companies increases the
bargaining power of consumers because they have the opportunity to switch with the other
companies in order to take the services in the market. It is also observed that the consumers
of Singapore are also more sensitive about the prices.
Bargaining power of Suppliers
The bargaining power of suppliers is high just because of less number of suppliers operate in
the market. It has been seen that there are few number of suppliers in the market due to which
the companies cannot easily switch with the other supplier. The switching cost of suppliers is
also high that is also a factor that increases the bargaining power of suppliers. It has been
seen that this factors is also unfavourable for the company in order to achieve the success in
the market.
The threat of competitors
It has been analysed that the threat of competitors is high due to the large number of
companies in the market. It is observed that there is less number of companies in the
Singapore market but the outsider companies increase the competition. The companies
provide the similar services which also increase the competition in the market. It is a negative
factor for the company because increasing competition increases the risk of losing the
consumers (Burns, & Dewhurst, 2016). The prices war is also increases in the company due
to similar services provided to the consumer. Each and every company wants to expand the
business at the international level by attracting the large number of consumers. The
companies offer the low prices in order to provide the low cost services with the high quality.
As per the above discussion, it is observed that the consumer of Singapore are price sensitive

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thus, it can be said that the consumers run towards the low prices. The exiting companies also
have less time to introduce the new innovations. New innovative companies are also the
target for the other companies because it attracts the large number of consumers in the market
(Adi, 2015).
The threat of substitute
It has been evaluated that the company has low degree of threat of substitute products
because it is difficult to replace the services of it. The company can introduce the new
technology in the exchange of existing services. Although; it is difficult for the companies to
replace the existing services. New innovation takes more time to replace the existing services
because research of new things consumes large time. The company has low threat but it is an
opportunity for the company to introduce the new innovation in order to attract the large
number of consumer towards the services of the company.
Recommendations
In the above discussion, it has been analysed that the company has high scope to grow in the
market due to many reasons. The company has to improve the quality of services in order to
attain the high market share. It has been recommended that the company has to follow some
strategies and these are as follows:
Cost Leadership Strategy
It is founded that the company faces the high degree of competition in the market. It is
recommended that the company has to follow the cost leadership strategy so that it can
achieve the success in the future by beating the competitors. The consumer of the company
will be attracted towards the services of the company due to low cost services (Bayraktar,
Hancerliogullari, Cetinguc, & Calisir, 2017).

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Focus Strategy
Focus strategy is the strategy of porter’s generic strategy. It is observed that the consumer of
the company has to adopt the Focus strategy to improve its services. The company has to
focus on the quality of the services which is provided to the consumer. It has to adopt the
high qualified staff which can help the company to improve the services with their new ideas
(Flouris, & Oswald, 2016).
Market Development
Market development strategy states that the company has the opportunity to extend the
business at the large area. It has to provide the existing services to the new market so that the
large number of consumer can take the advantage of the services of the company. The
company has to enter the new market with the different techniques and suitable mode of entry
in which it have large scope of expand the business (Schawel, & Billing, 2018).
Product development
Product development is an Ansoff matrix strategy which is used by the company to introduce
the new innovation product in the market. The company has to invest in the research and
development department so that the department will research more and introduce the
innovative services (Mind Tools, 2018). New services help the company to diversify the
services to the other companies. This strategy helps the company to gain the competitive
advantage by attracting the large number of customers.
Conclusion
From the limelight discussion, it has been concluded that the company has large opportunity
to attain the high market share in the market. It has been seen that the company is affected
due to the external factors such as competitors, consumers and new entrants. There are large

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number of companies enter the Singapore market in order to grab the customer, that is a
negative factor for the company. Political, Economic, Social are the factors that support the
organisation for the future success. But as per the porter’s five forces, the company faces the
issue of competitors and the large bargaining power of supplier. It is recommended that the
company has to adopt the business strategies so that it can attract the large number of
customers in the market. It has been concluded that the company will achieve the success in
the future by following the strategies.

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References
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Application of Porter’s five forces model. World, 5(3).
Bayraktar, C. A., Hancerliogullari, G., Cetinguc, B., & Calisir, F. (2017). Competitive
strategies, innovation, and firm performance: an empirical study in a developing economy
environment. Technology Analysis & Strategic Management, 29(1), 38-52.
Burns, P., & Dewhurst, J. (2016). Small business and entrepreneurship. Macmillan
International Higher Education.
Flouris, T. G., & Oswald, S. L. (2016). Designing and executing strategy in aviation
management. Routledge.
Jarzabkowski, P., & Kaplan, S. (2015). Strategy tools‐in‐use: A framework for understanding
“technologies of rationality” in practice. Strategic Management Journal, 36(4), 537-558.
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marketing book (pp. 108-142). Routledge.
Mind Tools. (2018). The Ansoff Matrix. Retrieved from:
https://www.mindtools.com/pages/article/newTMC_90.htm
Morden, T. (2016). Principles of strategic management. Routledge.
Racz, L., Fozer, D., Nagy, T., Toth, A. J., Haaz, E., Tarjani, J. A., ... & Deak, C. (2018).
Extensive comparison of biodiesel production alternatives with life cycle, PESTLE and
multi-criteria decision analyses. Clean Technologies and Environmental Policy, 1-12.
Rastogi, N. & Trivedi, M. K. (2016). PESTLE technique–a tool to identify external risks in
construction projects. International Research Journal of Engineering and Technology
(IRJET), 3(1), 384-388.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education,.

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Schawel, C., & Billing, F. (2018). Ansoff-Matrix. In Top 100 Management Tools (pp. 31-33).
Springer Gabler, Wiesbaden.
Singtel. (2019). Company Profile. Retrieved from:
https://www.singtel.com/about-us/company/company-profile