Strategic Business Analysis of Singapore's Electricity Market

This report conducts a strategic business analysis of the consumer retail market in Singapore, specifically focusing on the electricity sector. It begins with an introduction to the market and its structure, differentiating between constable and non-constable consumers. The report then delves into an external market analysis using the PESTLE framework, examining political, economic, social, technological, environmental, and legal factors influencing the market. Following this, an internal analysis using SWOT is performed. Finally, the report analyzes Porter’s Five Forces to assess buyer power, supplier power, competitive rivalry, the threat of new entries and substitution, and concludes with strategic recommendations for the market. The analysis aims to provide a comprehensive understanding of the market dynamics and offer insights for strategic decision-making.

Running head: STRATEGIC BUSINESS ANALYSIS
Strategic Business Analysis of Consumer Retail Service in Singapore
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Table of Contents
Introduction:....................................................................................................................................3
Market Structure:.............................................................................................................................4
External Market Analysis:...............................................................................................................5
Political Factors:..........................................................................................................................6
Economic Factors:.......................................................................................................................7
Social Factors:.............................................................................................................................7
Technological Factor:..................................................................................................................8
Environmental Factors:................................................................................................................8
Legal:...........................................................................................................................................9
Porter’s Five Forces.......................................................................................................................10
Buyer power...............................................................................................................................10
Supplier power...........................................................................................................................10
Competitive rivalry....................................................................................................................10
Threat of new entries.................................................................................................................11
Threat of substitution.................................................................................................................11
Internal market Analysis:...............................................................................................................11
Conclusion and Recommendation:................................................................................................12
Reference:......................................................................................................................................13

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Introduction:
The following report is going to analyze effective business strategy of consumer retail
market in Singapore with specific focus on Singapore electricity market. Since 1995, the
government of Singapore has been focusing on to liberalizing the electricity market thus giving
way to many private organizations to provide electricity service in the country. Under EMA
(Energy Market Authority) the supply and distribution of electricity in the country is regulated.
This report is going to effectively discuss the strategic analysis of the market that has been taken
into certain consideration pertaining to its effective understanding of the process. As a matter of
fact, this has been taken into certain consideration that in most of the cases, the business idea has
been taken into certain consideration with its proper market analysis. This is how, in most of the
cases, there has been a strong reply and the approach was from different proactive understanding
of the cases. While talking about the market structure it can be stated that there are two different
kinds of consumers present in the market system. This has been taken into certain consideration
pertaining to the effective understanding of the process. They are categorized into
i) Constable
ii) Non- constable players in the market
As studied, 13000 or more customers have been exercising their selection of electricity purchase
from the company in different locations in the country. The non- constable market is supported
by Singapore Power or SP and the constable customers are supported by the wholesale suppliers.
In this context, this has been taken into certain consideration pertaining to the effective
understanding of the process pertaining to its different sections. The following report thus looks

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into the process of both external analysis through PESTLE tools and internal analysis through
SWOT tools. Through the analysis of the market, a strategic recommendation has been placed.
Market Structure:
For the external analysis the market structure needs to be comprehended. In this manner,
this has to be taken into certain consideration pertaining to the effective conceptualization of the
process that the retail market of electricity as service provision would be highly effective for the
national economy. The market structure as the following diagram suggests is originated from the
power generation companies which further follow through the categorization of non-constable
and wholesale market. The non constable consumers’ market is devised by Market Support
Services Licensee or SP services and the wholesale market is supported by the constable
customers that are further categorized by Market Support services, wholesale market trader as
direct contributor to the market and retail service licensee. It needs to be ensured that the Market
Support Services or SP services constitute of Wholesale Market Traders that are indirect
contrubtor to the market. As a matter of fact, it needs to be comprehended that in most of the
cases there has been a positive understanding pertaining to the fact that this has been taken into
certain consideration pertaining to the effective understanding of the cases which have been
taken into certain consideration with its different purposes.

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Fig 1: Retail Market structure of Electricity in Singapore
Source: (sgc.org.sg, 2017)
External Market Analysis:
There are different factors that keep influencing the movement and structure of the
external market of any sector. These factors can be categorized into the following sectionsL
i) Political
ii) Environmental
iii) Social
iv) Technological
v) Legal

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vi) Environmental
These three factors are together termed as PESTLE. In this section this has been taken into
certain consideration pertaining to its different understanding of the factors that have been taken
into certain consideration of the fact that there are different in nature in this context this has been
taken into certain consideration pertaining to the fact that this has been taken into certain
consideration pertaining to the fact that this has been taken into account that the structure and
business performance of the market is effectively analyzed through these factors.
Political Factors:
Singapore being a democratic country possesses very few political risks. It has not
undergone major political issues for years. Hence it does not have political turbulences that
would hinder the prosperity of Major retail markets. According to the PERC (Political and
Economic Risk Consultancy), Singapore is the country with lowest political risk in the continent.
However, earlier in the 1990s, due to unstable political condition, the country was suffering from
lower economic growth. On the contrary the new millennium witnessed a sudden change that
was highly positive in nature. In fact, this has been taken into certain consideration pertaining to
its basic requirement. in this case it has been taken into certain consideration that this has been
taken into certain case that was highly effective for its different understandings. Some of the
reports from different marketing analysis sources have stated that there has been some stringent
political regulations pertaining to freedom of speech. Such stringent political factors have been
hindering the market expression of the business sectors. On top of that, the opposition parties in
Singapore have limited access to the written content of the political regulations. This has limited
and lessened the access of market expansion due to lack of direct and positive intervention of all

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kinds of political parties. Due to lack of debate in the parliament, the renovation of the market
structure is not made determined by the political parties.
Economic Factors:
Power supply in the country is quite important a part of the national economy. In this context,
this can be stated that in most of the cases, the power supply has been made easy for its different
purposes. As a matter of fact, this has been effectively considering the issues pertaining to
different understanding of the process. Singapore has been an important economy in the twenty
first century. The country has highest per capita income in Asia. Due to its effective
understanding of the cases where lack of corruption and lack of clash among the business giant
has provided a strong platform in the country. One of the most important factors for the overall
development of the process has been taken into certain in this context it can be stated that this
has been focused on the basic criteria of the entire case that was highly effective criteria of the
process. This has been highly impactful for the entire economic circulation.
Social Factors:
This has been taken into certain consideration pertaining to its different understanding of the
factors. Due to its effective chances in the most considering factors, the entire understanding of
the process was highly impactful. Singaporeans are considered to be highly materialistic in
nature. The need for new gadgets has been raising the demand of electricity. People have strong
sense for the development of nation. The integrity among the large number of the Singaporeans
has been striking hard to develop the economic and retail sector of the country. In this context,
this has to be taken into certain consideration pertaining to the effective understanding of the
case this has been taken into certain consideration pertaining to its different understanding of the
fact that this has to be taken into certain consideration pertaining to its different understanding of

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the cases where this has to be taken into certain consideration that was highly effective in terms
of considering the power and energy market. Since the country has high literacy index the need
for proper consumer product is actually specified by the people.
Technological Factor:
Since technology is a front runner that has been shaping the economy of a country, the
technological development has been crucial for every single economic development. The Public
Utility Board has been supporting the energy and power retail market in a greater sense. Under
EMA (Energy Market Authority) the supply and distribution of electricity in the country is
regulated. This report is going to effectively discuss the strategic analysis of the market that has
been taken into certain consideration pertaining to its effective understanding of the process. As
a matter of fact, this has been taken into certain consideration that in most of the cases, the
business idea has been taken into certain consideration with its proper market analysis. This is
how, in most of the cases, there has been a strong reply and the approach was from different
proactive understanding of the cases. While talking about the market structure it can be stated
that there are two different kinds of consumers present in the market system. The energy market
company of the country has been effectively performing business for the purpose of creating a
huge platform and technological advancement has excelled the overall development of the
market.
Environmental Factors:
The National Environment Agency Act of 2002 has clearly provided the instruction to
perform sustainable business. The guidelines pertained to the protection of the interest of the
consumers in association with the price and other supply terms. The other guidelines pertained to
the effective understanding of the entire case that has to be taken into certain consideration

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pertaining to the effective consequences with its different understanding of the factors. In terms
of creating the effective consideration of the market,, the legal factors are highly helpful for the
overall development of the entire market. The rudimentary hindrance is the environmental factor
that has really been polluted. In order to ensure the sustainable development there have been
several initiatives by the central Government of Singapore that would actually find out how the
production and distribution of energy is performed.
Legal:
The electricity market in Singapore is based on three different principals of business.
These are generation, transmission and distribution. The last principal i.e. the distribution one
relates to the delivery of electricity to business and homes. Hence it is also considered to be in
the retail service market. The retailing is the purchase of the electricity and its sales to individual
consumers. The electricity license is regulated and approved by EMA (Energy Market
Authority). EMA is responsible for each and every distributor’s business authenticity. In this
context, this has to be taken into certain consideration pertaining to its different business
segments. In this context, it can be stated that the basic need for the market structure has to be
taken into certain consideration if the business is effectively done. The National Environment
Agency Act of 2002 has clearly provided the instruction to perform sustainable business. The
guidelines pertained to the protection of the interest of the consumers in association with the
price and other supply terms. The other guidelines pertained to the effective understanding of the
entire case that has to be taken into certain consideration pertaining to the effective consequences
with its different understanding of the factors. In terms of creating the effective consideration of
the market, the legal factors are highly helpful for the overall development of the entire market.

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Porter’s Five Forces
Buyer power
The ability of the buyers in the Singaporean market is high, as they can be able to push
down the prices in the electricity market of the country. The customers have the option of
choosing from different suppliers, which can create a great pressure on the electricity suppliers
within the market. This has resulted in competitive prices that are provided by the suppliers so
that the customers can prefer a single supplier and continue to avail the services that are provided
by them (Chandramowli and Felder 2014).
Supplier power
With respect to the electricity market, the powers of the suppliers are a limited force, as
the companies have to source the product from which they receive a certain profit. They have
little control over the market, as they cannot influence the market in a proper manner due to the
existence of large number of players in the market. This provides an opportunity to the buyers in
choosing from a number of suppliers that are present in the market (Chuan and Ukil 2015).
Competitive rivalry
The competition is high in the market, as the presence of alternative methods is being
considered by the consumers such as the alternative renewable sources of energy. The presence
of the gas industry in the country is very strong, which is hampering the electricity market along
with the introduction of solar panels as well. The customers are slowly shifting towards these
products, as they are considered to be cheaper and friendly towards the environment as well (Wu
2013).

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Threat of new entries
The new entries are high, as the customers are considering the other available resources a
swell. The electricity market is open within the country, which has provided many opportunities
to the foreign companies as well to establish their market in the country by providing the
consumers with cheaper prices (Chuan and Ukil 2015).
Threat of substitution
This factor is relatively high in the market as well, as the consumers are being educated
about the hazards that can be created if the resources are depleted at a faster manner. This has
helped the customers in choosing alternatives, which will help them in organizing their products
in a better manner (Chandramowli and Felder 2014).
Internal market Analysis:
The internal market analysis is performed through SWOT.
Strength Opportunity
i) Strong Market hold due to growing
population
ii) Electricity Sg has strong customer
base that has been providing
unhindered power supply to the
individuals at home and at business
i) due to growing population the
company has opportunity to get in
to future business success
ii) Because of strong electric supply
from the suppliers, the distribution
is made easy thus opening a huge
scope for the entire business sector

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Weakness Threat
i) The weakness is that there is
no scope to change the
mode of service provision
ii) Due to lack of multiple
branches in Northern
Singapore the distribution is
limited.
I0 the major threat for the retail
sector of energy supply is that the
company has been facing trouble
from its multiple competitors in the
market that have been performing
diligent business.
Conclusion and Recommendation:
From the aforementioned discussion it can be concluded that the major electricity retail
market is based in the city areas of the country. The remote rural places are still fighting and
struggling for proper usage of such. In this case this has to be ensured that the entire market
structure needs to be fixed for its different locations.
It can thus be recommended that the company needs to be expanded in the rural places
where the service distribution would be ensuring the future success of the company.