BUS349 - StarHub Strategic Management: PESTLE & Five Forces

This report provides a strategic analysis of StarHub, a major telecommunications company in Singapore. It begins with a PESTLE analysis, examining the political, economic, social, technological, and environmental factors affecting the company. The report then delves into Porter's Five Forces, assessing the threat of new entrants, bargaining power of buyers and suppliers, competitive rivalry, and the threat of substitutes. The analysis concludes that the telecommunications industry in Singapore is moderately attractive for StarHub, considering its competitive position against rivals like MI and SingTel. The report highlights the importance of technological advancements, environmental responsibility, and understanding market dynamics in the telecommunications sector.

BUS349 A – Strategic Management
Management Report Cover Sheet
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Word Count- 876

Contents
Introduction.................................................................................................................................................2
PESTLE Analysis........................................................................................................................................2
Political Factors.......................................................................................................................................2
Economic.................................................................................................................................................3
Social.......................................................................................................................................................3
Technological..........................................................................................................................................3
Environmental.........................................................................................................................................3
About the Industry.......................................................................................................................................4
Porter’s Five Forces Analysis..................................................................................................................4
Threat of New Entrants............................................................................................................................4
Bargaining power of buyer......................................................................................................................4
Competitors’ Rivalry...............................................................................................................................4
Bargaining power of suppliers.................................................................................................................4
Threat of substitutes................................................................................................................................5
Industry Attractiveness............................................................................................................................5
Bibliography................................................................................................................................................6

Introduction
StarHub is the very well known telecommunication company of Singapore. It provides various
communication services that include digital cable services, mobile network services and Internet
services for the corporate as well as the consumer market. The company ranks second in the
Mobile Operator Service. The network of the company is Hybrid Fiber-Coax that satisfies its
costumers that provides multi-channel cable TV services1. The company is listed on the
Singapore Stock exchange. Next we are going to cover the PESTLE analysis of the company.
There are three immediate competitors of StarHub that are MI and SingTel.The customers of the
company include immediate buyers and the corporate entities.
PESTLE Analysis
PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental factors
that affect the working of a particular company.2.
Political Factors
Political factors are related to the nature and level of intervention of the government. Various
policies and the systems that affect the flow of the company are covered here. The Political
factors that affect the StarHub are:
The Company does not face any problems in regard to political instability, military policies and
terrorist threats due to its ADR that has a very good experience in handling these kinds of issues.
Along with this the company has been facing lower taxation policies throughout its western
hemisphere which have helped it to get higher profits thereby allowing it to spend more on
research and development3.
1 . Goh., Singapore’s Telco market looks saturated.
2. StarHub.StarHub Announces Strategic Efficiency Transformation Initiative
3.Bolland., Comprehensive Strategic Management: A Guide for Students.,30.

Economic
It has been seen that there is a rapid growth of StarHub since last decade. The market share of
StarHub is 38 percent4 which is a great improvement in the living standard of the people and
increasing the purchasing power of the people.
Social
The world is becoming digital with the passing time. Hence everywhere use of mobile phone and
internet has become very common. In Singapore 82.2 percent of population has access to internet
as of 2017. Currently, 4.3million of people are active mobile users that is75% of the population
and it is expected that there is +8% growth every year5.
Technological
It was announced by StarHub in the year 2018 that it will concentrate on focusing in new
business that is Cyber Security Company so that cyber crimes could be minimized in the coming
years (Information Technology. 2018).
Environmental
The competitiveness and the network infrastructure of StarHub is expanding and hence it has
been taking various steps to minimize its environmental impacts. StarHub follows a six-point
commitment to its environment that includes adhering to the recommendations that are given by
various authorities, efficient resource use and waste reduction for reducing the environmental
loads, reviewing the environmental commitment and goals for reducing the environmental
impacts, implemental the programs for making the employees aware on the environmental
issues, supporting the environmental conservation initiatives and adopt the technologies that are
environmental friendlyi.
4. Eileen, Way.Singapore Power faces incumbent competition in bid to provide more than fibre dumb pipes
5. StarHub. StarHub Announces Strategic Efficiency Transformation Initiative

About the Industry
StarHub is the telecommunication Industry that is operating in Singapore.The company is a
jointly hold owned and its customers includes government utilities, corporate entities and
individual residents
Porter’s Five Forces Analysis
Threat of New Entrants
There is moderate threat for the telecommunication industry in Singapore. One of the greatest
barriers for the new entrants is the infrastructure cost in Singapore6.
Bargaining power of buyer
The consumers have low bargaining rights as they cannot negotiate on the prices of the services
being offered to them while the corporate entities can negotiate the price and hence they have
moderate bargaining power7.
Competitors’ Rivalry
There is high competition among the competitors in Singapore8. The only Rivals or the
competitors of StarHub are MI and SingTel who give tough competition to the company.
Bargaining power of suppliers
The suppliers like Apple have a full control over their buyers and therefore the bargaining power
of suppliers for StarHub is moderate in Singapore9. Whereas, StarHub requires strong
distribution network and the concentration of suppliers is less so the suppliers bargaining power
is low.
6
75.Goh, Singapore’s Telco market looks saturated.
6. StarHub. StarHub Announces Strategic Efficiency Transformation Initiative.
87. Eileen, Way.Singapore Power faces incumbent competition in bid to provide more than fibre dumb pipes.
8. Lee, Justin. StarHub seeks competitive edge in digital space.
9

Threat of substitutes
As the only competitors of StarHub is SingTel and MI , therefore the threat of substitute in the
telecommunication company is moderate. If any company hikes its calling services than the
customers can go for internet calling10.
Industry Attractiveness
After analyzing the above factors it can be concluded that the StarHub is performing well and the
industry attractiveness is favorable.
Bibliography
10. Sbr., Information Technology.

Bolland, Eric. Comprehensive Strategic Management: A Guide for Students, Insight . New York: Cengage
publications, 2017.
Ferrel, Hartline,Micahel. Marketing Strategy - Page 199. London: Wiley publications, 2012.
Goh, Joseph. "nuinvest.com."nuinvest.com. December 15, 2013. http://www.nusinvest.com/wp-
content/uploads/2012/08/Singapore-Telecommunications-Joseph-Goh-Jian-Hui.pdf (accessed Feburary
14, 2019).
Goh, Melissa. "cnbc.com."cnbc.com. July 17, 2017. https://www.cnbc.com/2017/07/17/singapores-
telco-market-may-look-saturated-but-players-are-still-vying-to-enter.html (accessed Feburary 14, 2019).
Sbr. "sbr.com.org."sbr.com.org. Janurary 30, 2018.
https://sbr.com.sg/information-technology/news/483-million-singaporeans-are-now-online (accessed
Feburary 14, 2019).
Lee, Justin. "asia.nikkei.com."asia.nikkei.com. May 03, 2018.
https://asia.nikkei.com/Business/Companies/StarHub-seeks-competitive-edge-in-digital-space (accessed
Feburary 14, 2019).
StarHub. "starhub.com."starhub.com. October 3, 2018.
http://www.starhub.com/about-us/newsroom/2018/october/starhub-announces-strategic-efficiency-
transformation-initiative.html (accessed Feburary 14, 2019).
Yu, Eileen, and The. Way. "zdnet.com."zdnet.com. June 16, 2016.
https://www.zdnet.com/article/singapore-power-faces-incumbent-competition-in-bid-to-provide-more-
than-fibre-dumb-pipes/ (accessed Feburary 14, 2019).

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