StarHub's Strategic Position: External and Internal Analysis Report

This report offers a comprehensive strategic analysis of StarHub, a leading telecommunications company in Singapore. It begins with an executive summary and an introduction that sets the stage for understanding StarHub's position within the volatile business environment. The report delves into the company's financial situation, assessing past performance and financial strength, determining its capabilities. A thorough external analysis identifies key trends, opportunities, and threats within the Singapore telecommunications market, considering factors like technological advancements, data analytics, and increasing competition. The scope of the analysis is defined, focusing on the Asian market and Business-to-Business services. The internal analysis examines StarHub's competencies, such as its AI-ready infrastructure, skilled workforce, innovation-based services, and revenue, evaluating their contribution to value creation and long-term sustainability. The report then defines a core issue or problem StarHub faces, sets relevant goals and objectives to address it, and explores alternative strategies for resolution. Each strategy is evaluated using the SAVED framework, which considers Staging, Arenas, Vehicles, Economic logic, and Differentiators, to provide a roadmap for StarHub's future strategic moves. The report concludes with a detailed reference section using the Chicago referencing style.

STRATEGIC
MANAGEMENT

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Executive Summary
Understanding of their internal and external environment always helps a firm to make better
strategies that gives them competitive advantage over the others. This report will highlight
the opportunities, threats and tends in the Telecommunication industry in Singapore. It is
found that people are moving towards mobile technology and are demanding for high speed
internet facilities. This report will also analyse the internal environment of the StarHub. It is
found that skilled labourers, Artificial Intelligence ready infrastructure, innovation based
services and high revenue are some of the major competencies of this firm that provides
company with capabilities which help in adding value to different aspects of the business.
These capabilities are makes company capable of enduring the challenges that are
confronting their business.

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Contents
Executive Summary...............................................................................................................................1
INTRODUCTION.................................................................................................................................3
External analysis....................................................................................................................................3
Trends, opportunities and threats.......................................................................................................3
Scope of company.............................................................................................................................5
Internal analysis.....................................................................................................................................6
Competencies of StarHub..................................................................................................................6
Will it endure in future......................................................................................................................6
REFERENCES......................................................................................................................................8

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INTRODUCTION
Today’s business environment has become very much volatile and in this environment, it is
essential to understand the changes in the internal and external environment. This must be
done on the basis of factors that are affecting the business operations. It is also crucial for any
company to understand the challenges they are facing in the market and at the same time,
they must also note the challenges and threats they face in the market (Lin, 2013). For this, it
is crucial that companies understand the trends in the market as well as the capabilities or
competencies they have to create value and its sustainability in future. StarHub is one of the
leading firms in Singapore market hence analysis internal and external factors becomes
further essential.
External analysis
It is essential for any organisation to analyse the external environment as it is having a long
term effect on the business operations of any company. External analysis must be done on the
basis of the trends that are involved in the industry.
Trends, opportunities and threats
Trends
 Since lots of innovations are going on in the telecommunication market hence many
new technologies are being used by different companies so as to gain competitive
market.
 Data analytics and high data speed are some of the trends that are shaping the
Singapore’s telecomm market. This is done so as to improve the customer service
standards and improving the internal customer relationship management (Faccio and
Zingales. 2017).
 Companies are investing a lot of money on the research of artificial intelligence so
that automation can be involved in the business process. Artificial intelligence is the
future hence companies like StarHub is also investing in this technology.
 IoT applications or services are also widely used by different companies and similarly
StarHub has also signed a MoU to co-develop and launch IoT applications.

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 Traffic in the Singapore market’s telecomm market has moved towards mobile
technology rather than fixed mobile connections. Company will have to think about
the fact that there is fast decrease in the subscriber’s number in both cable modem and
DSL (Sirapracha and Tocquer. 2012).
 Liberalisation, Privatisation and Globalisation are the three other regions where
industry has moved towards. This is the major reason why competition in the industry
has gone to higher levels.
 There is excessive demand for the high speed connection at lowest of prices. More
competition has pulled this price margins to further lower levels. This is the major
reason why companies are investing in the advanced technologies that reduces the
overall cost of the company.
Opportunities
 Lot of opportunities are available in the Asian market. This is because population in
this region is very high and all of them trying to get connected with the work. This
gives them an opportunity to increase their business and their profits.
 Company also has opportunities in the 5G and 6G technologies as they are the future
of the industry. Since there is enhanced demand in the speed of the internet
connections hence it is crucial for the firms like StarHub to improve their internet
infrastructure that helps in providing such kind of facilities (Sirapracha and Tocquer.
2012).
 They also have opportunities in the Singapore market as the market is expanding and
there are large numbers of demanding for high speed connections. This is also
necessary for the business development within the country.
 Opportunities are also available in improving the quality of services being provided to
the users. This can be understood in terms of the fact that StarHub has to improve the
technologies in which they are dealing at much faster speed (Chua, 2012).
 They also have opportunity of doing innovation in the industry that can help them in
giving competitive edge over the rivals. Innovations must be in different aspects of
business.
Threats
 The biggest threat that this company is facing is the competition. There are two major
competitors of StarHub i.e. Singtel and M1. Apart from this there are many small

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competitors also emerging in the Singapore market and are aiming to provide services
to the people in the country in the smaller areas. This is reducing the chances of the
company to increase their market base.
 Right now the threat of new entrants is on the lower side but at the same time it is also
seen that due to increase in the innovation it is possible that new investors can come
into the industry in future (Siddiqui, 2010).
 Decreasing rates of the internet and voice-call services while being motivated by the
competition is also a threat to the StarHub. This is because it lowers the chances of
company to gain higher amount of profit. This will also have impact on the revenue of
the company.
 Lot of investments are being done by different companies especially in the marketing
and sales. This is creating a challenge for the company to maintain its position in the
market.
 Data privacy is also a bigger threat to the company. This is because they are there are
large numbers of active hackers worldwide and they are capable of disrupting the
business process by hacking the system. This makes a huge amount of data of the
users on stake (Vu, 2013).
 There is instability in the world economy hence the chances that external investors
might invest in the country is also less.
Scope of company
StarHub has scope in both Asian regions. Since they lag in terms of investors that are
attached with them hence there scope outside Asia is less. But since the Asian economy is
growing at much faster rate and it has become one of the biggest markets for the mobile
phone markets hence the scope of business and increasing revenue is also high in this region.
Company also has a scope in Business to Business services. Since there are large numbers of
companies working and coming in Singapore that is demanding for the high speed internet
facilities and this company is able to provide them services as per their demands (Trisha,
2010). Company can also do tie ups with the companies from other industries so as to provide
them services at lower cost. This can help them in increasing their revenue which they have
lost due to lower rates in Business to Customers model.

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Internal analysis
Along with the external analysis, it is also crucial that company does internal analysis so as to
understand that whether they will be able to perform better in the changing global business
environment or not (Chen, 2014). First thing that need to be considered in the internal
analysis is the resources and competencies any firm has that helps in their sustainable growth
and also helps them in improving their performance in today’s time.
Competencies of StarHub
 Artificial intelligence ready infrastructure: StarHub has infrastructures that is highly
advanced and are capable of handling the artificial intelligence network. Since
Artificial intelligence is the future of the industry hence this competency of the
company has the capability to give the competitive advantage to the firm. Whenever
any technology is introduced within the firm, the biggest challenge that any company
faces is the fact that whether their infrastructure will be able to handle the new
technology or not (Jones, 2014). They add value to the whole business process.
 Highly trained staffs: It is seen that people have large numbers of staffs that are highly
trained. Skilled and trained staffs have helped them in gaining edge over the rivals.
This competency has the capability to increase the performance of the company in
different aspects of the business. This adds value to the work process.
 Innovation based service: This Company provides services that are innovative in
terms of plans. This is possible because they have a good decision making body that
makes them capable of dealing with the different situations. This competency has
helped them in remaining the leader in the market. This has added the value to all the
services they provide (Exclusivity, Ending Content. 2014).
 Revenue: This Company has a high cash crunch which helps the company to invest in
new areas especially in the research. This will add value to the overall business
process.
Will it endure in future
All these capabilities are highly beneficial for the company in future and will also help the
firm to enduring the challenges that are confronting the industry and threatening the business
of StarHub. Competencies such as skilled employees will help the firm in finding solution to
the challenges that company will face in the future. In the era where privacy concerns have
become the major threat to business, the artificial intelligence ready infrastructure will ensure
that more privacy can be ensured with the people. These capabilities of the firm will also help

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in enduring the scarcity of the resources. Since there is a heavy competition about the ways in
which services will be provided in such an environment capability such innovation based
services will help the firm in improving the business of the company. It is also to be noted
that the economic condition of the world is not stable and in such an environment, it is
beneficial that company has higher cash crunch. It will help the firm in facing future
economic crisis (Chen, 2014).

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REFERENCES
Chen, Christopher C. 2014. "Corporate governance of state-owned enterprises: An empirical
survey of the model of Temasek Holdings in Singapore." Singapore Management University
School of Law Research Paper 6: 1-29.
Chua, Jeannie. 2012. "The e-Transformation journey of Singapore." In National Strategies to
Harness Information Technology, pp. 41-76. Springer, New York, NY,
Exclusivity, Ending Content. 2014. "10 Fine-Tuning the Competition." Policy and Marketing
Strategies for Digital Media: 154.
Faccio, Mara, and Luigi Zingales. 2017. Political determinants of competition in the mobile
telecommunication industry. No. w23041. National Bureau of Economic Research.
Jones, David S. 2014. "Singapore Country Report." FINANCING ASEAN CONNECTIVITY:
331.
Lin, Trisha TC. 2013. "Convergence and regulation of multi-screen television: The Singapore
experience." Telecommunications Policy 37, no. 8: 673-685.
Siddiqui, Kalim. 2010. "The political economy of development in Singapore." Research in
Applied Economics 2, no. 2: E4.
Sirapracha, Juthamard, and Gerard Tocquer. 2012. "Branding and customer experience in the
wireless telecommunication industry." International Journal of Trade, Economics and
Finance 3, no. 2: 103.
Sirapracha, Juthamard, and Gerard Tocquer. 2012. "Customer experience, brand image and
customer loyalty in telecommunication services." In Int Conf Econ Bus Mark Manag, vol. 29,
no. 1: 112-116.
Trisha, T. C. 2010. "The Gordian knot of mobile TV policy in Singapore." J. Int'l Com. L. &
Tech. 5: 11.
Vu, Khuong M. 2013. "Information and communication technology (ICT) and Singapore’s
economic growth." Information Economics and policy 25, no. 4: 284-300.

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