Strategic Analysis of SingTel Telecom

strategical summary of SingTel telecommunicationIntroductioncapital of capital of Singapore Telecom (Singapore Telecommunications Limited, referred to as SingTel, AFP) was established in 1879, is a wholly-owned by Singapore government-owned company, it is Singapores largest telecommunications companies.Singapore Telecom to increase strongly in marts outside of Singapore, and a circumstancesial game in the means, including the Australian carriers Optuss 100% stake in 2000, the British Cable and Wireless(prenominal) Optus, and other sh atomic egress 18holders of the dowrys.Singapore Telecom a majority stake is controlled by Temasek Holdings, the Chairman is LeeHsien Yang (the second son of author Prime Minister Lee Kuan Yew and current Prime MinisterLee Hsien Loong, his younger brother). harvest-tides and ServicesSingTel is Asias ahead(p) telecommunications company, with across wireless and Internet platforms for voice, data dish ups, service-oriented short letter, as well as home two areas. Singapore Telecom has long been committed to providing customers with the Asia- Pacific regions most high-quality service. Now the focus is on the Internet service providers, runny phones and fixed telephone communications services in a higher place.Company HistoryOver the past decade, Singapore Telecom has success skilfuly completed their high efficiency to the worlds leading operator transfers. The company offers a panoptic range, the dumbfound is quite agonistical telecommunications services, and world-wide 5000 companies from different countries to provide telecommunications services. Singapore Telecom has already built a large scale in Singapores domestic telecommunications network, and the annual investment of 1 billion new coins modify the network. In order to enhance competitiveness at home and abroad, the company offers intelligent fixed telecommunications services. At present, the company has been in the world, 15 countries, 23 cities and reg ions set up operational organs, including China, the United States, Britain, Japan, Korea, Malaysia, Indonesia, Vietnam and Hong Kong and Taiwan. It has a divine history of 120 courses. SingTel aims to be a new era of pan-Pacific region bears the brunt of the true sense of the telecom operators. To this end, Singapore Telecom go forth continue to puff with other Asian countries in telecom peers, and the kitchen stove of cooperation. SingTels Group CEO is Chua Sock Koong and CEO is Allen Lew.Business systemSingapore Telecommunications Ltd. owns 7800 million as the practice sessionrs SingTel is Asia Pacific region, excluding China, the largest agile Internet operators. 1992 companies from the former government monopoly privatized, SingTel in 2003, when the postal service from its opening, the focus is now on the Internet service providers, mobile phones and fixed telephone communications services above. Hopes with a countywide and sophisticated international leading-edge tec hnology, and gradually get rid of the public color, sharply turned into a full private sector. Goal is to build a world-class institutions, non altogether to win the international familiarity for its recognition of science and technology and technical foul expertise, and quality service and wares provided by domestic users make water in kindred manner been positive.LogoNew corporate logo by a simple, symbolic of the ellipse, with the two squares. Designed to cozy up the companys innovative technology, international affairs and services-oriented. Elliptical lines out of Singapore Telecoms global reverie, the two squares on behalf of the acclivitous digital technologies, while the red and black of a stable and reliable dissemination of messages. The new visual corporate identity and enhance Singapores telecommunications as a global fabrication leaders pivotal position.From the above mentioned, we understand that SingTel Group is a leading company in the telecommunication i ndustry in the region, out-of-pocket to prospered business strategies. Thus, it is all central(p) that all organizations understand their authorisations and weaknesses before implementing strategies. They should set-back analyze their goals and operations to agree if the current practices are working towards the mission and vision.A companys vision and mission is crucial to an organization, as it paves the modality for where the company is headed and what it assumes to provide for its stakeholders. At the beginning of strategic management process, the organization conveys to develop its vision statement and mission statement. A vision statement is what the organization indispensabilitys to become and describe how the future bequeath look if the organization achieves its mission. A mission statement explains what the organization does, for whom and what the benefit is. The vision, mission statements and core appraise of SingTel are shown in table 1 as followPrior to the cultivation of scheme and merchandise schemes, they should evaluate twain the international and internal factors. Hence, the corporate world usually utilizes various strategic tools identical the SWOT abridgment that whitethorn influence the implementation of plans.Below is the SWOT Analysis of SingTelSingTel SWOT AnalysisSWOT analysis is the overall evaluation of a companys Strengths, Weaknesses, Opportunities, and Threats. The external analysis looks at opportunities and threats shitd by the environs while the internal analysis looks at the strengths and weaknesses of the company. In strategic planning, the company matches its capabilities with available opportunities and takes action to minify threats. (Kotler, Bowen and Makens, 2006)SingTel Group is the leading integrated communications service providers in the Asia Pacific region and their core business operations are located in Singapore and Australia. The company has business in a name of sectors of the telecommun ications market in the Asia Pacific region (http//home.singtel.com/investor_relations/default.asp , 2009).Internal Environmental Analysis (Strengths Weakness)Strengths are resources and capabilities that allow the household to complete important tasks. Resources base be the tangible and intangible assets held by the firm, and capabilities result when the firm integ evaluate several(prenominal) different resources to complete a task or a series of related tasks. (Hoskisson/ Hitt/ Ireland, 2009)Weaknesses are those actions a company is not doing well or resources a company are lacking. Most importantly apiece business removes to evaluate its strengths and weaknesses periodically.Strengths and Weaknesses of SingTel are as followStrong cash flowSingapores lapse Ten Brands 2009 ranked number 6Exclusive contract with Apple 2008Right to get off the bordering trine seasons of the English Premier union (EPL) privation of feasibility of a universal set-top boxLack of nationals for topical anesthetic pay TV marketStrengthsMost of SingTels strategic, operational and financial dynamics are currently improving. This is an indication that the companys current business strategies are proving to be successful.SingTel has a diverse stretch out of geographical operations. The companys main business activities are foc employ in Singapore and Australia and partners located in India, Belgium, Hong Kong, Thailand, the Philippines, Taiwan and Indonesia. The spread of geographical operations will benefit the company, as it will become less depend on the local market to generate revenues. Most of their businesses are experiencing double-digit revenue harvest-tide over the past year (http//home.singtel.com/investor_relations/default.asp , 2009).SingTel captured the exclusive contract with Apple last year, and has since brought in more than 100,000 iPhones, thus increasing the companys revenue, the average sp cease per customer for mobile data (http//home.singtel.com/in vestor_relations/default.asp , 2009).Taking sixth position for the Superbrands Survey, which identified over 500 of Singapores consumers darling brands across 93 categories of consumer products and services demonstrated the consumers choice and trust in SingTels products and services (www.marketing-interactive.com/news/11875).SingTel call StarHub to score the coveted rights to dot the next three seasons of the English Premier fusion (EPL) from 2010 to 2012. With the rights to broadcast the EPL, there will be a great potential that gass incline customers from StarHub will turn over to SingTel (The Straits beat dated 11 November 2009).WeaknessesAs a leading telecommunication company in Asia, the customer service in SingTel has rooms for improvement. Under the current extreme competitive environment, all the companies not only postulate to provide unique products except excessively good customer service. Thus, employee training curriculum could be provided in order to hand le customers problems effectively.With acquire of the Pay TV license in the domestic market in Singapore, Singapore needs to look at the feasibility of a universal set-top box that will dress hat benefits consumers and align with the government strategic direction. SingTels demarcation boob tube subscribers complaining about the hassle of having two set-top boxes may be a take exception that SingTel need to overcome (The Business Times dated 4 November 2009). impertinent Environmental Analysis (Opportunities Threats)Opportunities are conditions in the firms external environment that may help the firm distribute its vision (Hoskisson and Hitt, 2009). A marketing opportunity is an area of need in which a company wad perform profitably. Opportunities tidy sum be listed and classified match to their attractiveness and the success profitability. (Kotler, Bowen and Makens, 2006)Threats are conditions in the firms external environment that may prevent the firm from reaching its v ision (Hoskisson and Hitt, 2009). An environmental threat is a challenge posed by unfavourable trend or developments that would lead, in the absence of defensive marketing action, to gross gross revenue or profit deterioration. Threats basin be classified according to their seriousness and probability of occurrence. (Kotler, Bowen and Makens, 2006)Opportunities and Treats of SingTel are as followGlobal opportunities in mobile communicationRights to broadcast the World Cup 2010Potential merger of StarHub and MobileOne (M1)Australian market strong competitionOpportunitiesAfrica and Vietnam are markets in the emerging mobile space, which is definitely worth our inte liberalization, and SingTel is actively taking the lead to explore the untapped emerging telecom market. (Harry Suhartono, Nov 11,2009)Singapore and Australia accounted for 54 pct of the groups EBITDA , earnings before interest, taxes, depreciation and amortization and more opportunities for further growth. With SingTel outbid StarHub to score the coveted rights to broadcast the next three seasons of the English Premier league (EPL), there will be great opportunities to expand the customer-base for PayTV customers (http//home.singtel.com/investor_relations/default.asp , 2009).Moreover, with the exclusive right to broadcast the next three seasons of EPL, F1, the next opportunity for SingTel is Word Cup 2010. With hold of the World Cup 2010, SingTel will dominate the fluctuations crinkle in the region.TreatsWith StarHub and MobileOne obtain licenses to sell Apples popular iPhone and their launched on 9 December 2009, SingTel lost the 15th months monopoly. Thus, will bidly to face tougher competition in the local market.Potential merger of StarHub and MobileOne will be a big treats to SingTels Number One position in Singapore for mobile market in Singapore.SingTels subsidiary Optus is facing strong competition with their competitors in the Australia and possibly affects their leading position and revenges.With the competitive market, SingTel will have to fight against StarHub and MobileOne by dint of impairment, forward motions, and advertising since all three companies main business are in the provision of mobile plans and the sale of mobile phones. Perhaps, SingTel may need to improve the customer service further to create a superior customer service that check off to their brandWith the winning of the broadcast rights for the English Premier League, it is expected that loyal football fans will switch from StarHub over to SingTel, e finically with the low rate offered by SingTel. Hence, competition is intense and SingTel would need to take on actions to further enhance its Strength whilst working on its Weaknesses.After evaluating the external and internal factors, SingTel started to develop strategies much(prenominal) as launching of Mio TV, which is able to capture more market share and ultimately enhancing SingTels market position. Mio TV is a new technological product in the current market, thus, it is necessary for the company to assess the product liveness roulette wheel (PLC).Product intent CycleAccording to Kotler, every product has its life. The product life cycle pattern allows marketer to plan their marketing strategies to manage their product or service through various phases of their product life cycle. The purpose of this concept to establish which phase of its life cycle is and consider the best fitting marketing strategies for the product in that phase.Base on Kotler (2000) the product life cycle piece of tail be divided into four distinct phases those are knowledgeability, growth, adulthood and even off phases. Furthermore, Kotler also provided the side by side(p) marketing symptomatic, marketing prey and marketing strategies within its of the product life cycle phases.Characteristic according to Kotler, there are existing different characteristic sales, cost, profit, competitors and customer for its point in ti mes in the product life cycle. Those washbasin be described as follow exchange characteristics sales are low in the introduction interprets, rapidly increase in the growth introduces, peaking in the maturity stages and decreasing in the decline stages. address characteristics the cost per customer will be high in the introductory stage, average cost per customer in the growth stage, and low cost per customer in the maturity and decline stage.Profit characteristic profits can be none or negative in the introductory stage, increase in the growth stage, and high in the maturity stage and reducing in the decline phase.Competitors characteristic there is existing only few competitors in the introductory stage, increasing in the growth stage, stable in the maturity and decreasing in the decline stage.Customer characteristic in the introductory stage has only few customers who call innovators are testing the product, early adopter trying the growth stage, a centre majority testing prod uct in the maturity and the laggard trying the product in the decline stage.Marketing objectives Kotler also provides differences kinds of companys marketing objectives which linked to four stages of product as belowIntroductory stage to make awareness and trial by using an intensive advertising and advance campaign.Growth stage to maximize the market shareMaturity stage maintaining market share while profits can be calm maximizeDecline stage reducing marketing expenditure of the product during this stage while the aim will be to milk the product.Marketing strategies the alternative marketing strategies was given by Kotler are related to various stage of the product life cycle as belowProduct strategy a basic product will be offered in the introductory stage, product extensions and warranties will be offered during growth stage, brand and individual product item will be diversified in the maturity stage and the weak model will be phased out during decline stage.Price strategy the cost plus price will be changed during introductory phase, price will be set to penetrate the market during the growth phase, the price will be set to meet competitive price during the maturity phase while price will be hurt during the decline phase.Distribution strategy distribution will be built selectively during introductory phase, it will be intensive during growth phase, distribution will be further developed during the maturity phase and it will be more selective during decline phase.Advertising strategy building awareness of product among early adopter and dealers in the introductory phase, building awareness and interest in the mass market during the growth phase, stressing brand differences and benefits during the maturity phase and reduce the advertising level needed to retain hard core-loyal customers in the decline phase.Sale promotion strategy using heavy promotion to entice trial during the introductory phase, reduced promotion to take advantage of heavy customers d emand during the growth phase, increase promotion to encourage brand electrical switch in the maturity phase and reducing promotion to minimum in the decline phase.Limitations of the Product Life Cycle ConceptThe term life cycle implies a well-defined life cycle as observed in living organisms, but products do not have such a foreseeable life and the specific life cycle curves followed by different products vary substantially. Consequently, the life cycle concept is not well-suited for the forecasting of product sales. Furthermore, critics have argued that the product life cycle may become self-fulfilling. For example, if sales peak and then decline, managers may conclude that the product is in the decline phase and because cut the advertising budget, thus precipitating a further decline.Each customer is more or less free to adopt products for their own needs this is sometimes called the shopping caddy approach to product adoption. However, in order to attract customer, not only s hould SingTel understand the PLC, it is also necessary for SingTel to analyze the competition and to be proactive to beat competitors in the current highly competitive market. Porters five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developing Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. (http//en.wikipedia.org/wiki/Porter_five_forces_analysis)SingTels Competitive RivalrySingapore Telecommunications Limited is considered as the biggest telecommunication company in Singapore. Singtels services provide for customers with ISP (SingNet), IPTV (Mio TV), fixed line telephony and mobile phone. The second largest in mobile operator and cable television is StarHub, its also the biggest competitor of SingTel in Singapore.The recently moves of these two companies in cable tele vision services have make the impacts on them. This also pointed out the effective strategy that SingTel approached over its competitors StarHub.StarHub used to be right holder of English exchange premium League, Champion League and it had to pay around US $150 million for the current 2007 to 2009. StarHub has provided attractive packages of television cable that includes so many sport and entertainment channels. Its authentically an advantage competitive of StarHub to increase its market shares over SingTel. StarHub actually has surpassed SingTel in this area and been sincerely a big challenge of SingTel.However, a fantastic move of strategy from SingTel recently has changed things differently. StarHub has been beaten on bid and SingTel has won the right to be the holder of English Premium League and Champion League for its Mio TV. The ESPN Star Sports channel of StarHub cable networks will belong to SingTel in the middle of 2010 as well. The rights of ESPN Star Sport include Eng lish FA Cup, Formula One motor racing, Wimbledon tennis, US rude, Australian Open and US Open golf. These channels are going to Singtel, and this factor will definitely make increasing number of Singtels subscribers.The loser of StarHub in bidding racing is not the end of its Television cable services. StarHubs platform still can present the English football with delayed telecasts matches on Goal TV 1 and Goal TV2 channels for its subscribers at present and future seasons.For Singtel, with the advantages in creation the new holder of those channels, Singtel will have a contract of three years period. The contract will start in August 2010 and include mobile and earnings rights as well as Television cable services. One thing is considered as promotion of Singtel, it will guarantee to keep the current payment of StarHubs subscribers and will not change anything.It will be Singtel, the company will deliver the English Barclay Premium League matches to Singapore. The ways of viewing live football matches on Television, on mobile phones and internet will be improved by Singtel. It will incur the best services to its football fans.On the other hand, SingTels competitor, StarHub still tries to maintain the best quality sport content to its customer. It now focuses more on shareholders expectations in terms of profits. StarHubs bid for Barclay Premium League was really aggressive. So now they look forward to the time when they can get back to right of being the holder. And StarHub is always a big challenge of SingTel. It could approach the opportunities anytime and get over SingTel in the future.Implication Analysis trespasss on viewersMost of viewers from StarHub will not be happy when they have to change to SingTels Mio TV service for sports channels. The situation will be worst for the customers, who have signed the contract of two years with StarHub for sport package. The English Premium League and other sports content will now not be able to be viewed by the m. The subscribers of StarHub need to sign up with SingTel as an addition if they would like to view sports content. When the viewers sign up for Mio TV service of SingTel, they also need to install a SingTel fixed line in advance. SingTel has promised with the consumers to keep the pricing of sport content as the current StarHub rates and will not increase anything. It can be seen that, SingTel is giving a special promotion with special package for sports fans. The customers could subscribe to English Premium League and sports packages only of SingTel if they would like.Impact on Singapores Pay TV landscapeSingTel has taken a new step in TV cable service. Now its holding the right of English Premium League and other sports channels, and this will be a very important factor in competing more strongly with other TV providers, especially StarHub. Its really dominance of StarHub when it owns 85 % of market share of Singapore. However, SingTel now will be the only one that brings Engli sh Premium League and other sports content to Singapores football fans. Therefore, SingTel is expected to be the number one in providing TV cable services in the future.Impact on StarhubSince the IPTV of SingTel appeared in 2007, it has been a big challenge of StarHub. The development of SingTels IPTV has made StarHubs growth rate decrease to 4% year on year. StarHub had 530 thousand TV subscribers in the first half of 2009 and 250 thousand of them belong to the sports package. So being the winner of the right holder of English Premium League, SingTel will affect StarHubs subscribers so much. Specially, SingTel will attract the attention of football fans directly. However, it is not complete ending for the StarHubs TV cable. StarHub still has other premium content like Star World, HBO, AXN and so on. The customers also need to sign up with StarHub if they wish to view this content. Among 250 thousand of sports package, 36% of them are expected to switch from StarHub to SingTels serv ice. The rest subscribers are expected to sign up for SingTels sports package and still keep their StarHub service for premium content.Impact on SingTelTwenty three months since 2007, SingTels Mio TV service had grown so quickly, 100 thousand subscribers is the number of SingTel has reached in June 2009. SingTel has captured over 15% Singapore TV cable market. From April 2008 to March 2009, it has expanded its subscribers over its contest StarHub by 79%. Together with the competitive advantage of being the winner of English Premium League and other sports channels, a number of 348 thousand new subscribers will be set for SingTel as an objective to achieve at the end of 2010. This objective will help SingTel to increase up to 42% share of Singapore Pay TV market. However, with the expensive bid like that, its also a long-run plan for SingTel to make IPTV business profitable. SingTel now is holding English football sports and US content pack, but its still not complete. SingTel need to keep its speed of growth and try to take over the premium content of StarHub. It could be the core factor, which can build the SingTels Mio TV cable services perfectly.In the competitive market place, having a competitive advantage means that the firm is using its resources, capabilities, and core competencies in ways that create more value for customers compared to the value competitors products create for those customers. (Hoskisson/ Hitt/ Ireland, 2007) By launching the Mio TV, SingTel is able to gain a competitive edge, the reasons are as followCompetitive AdvantagesOne of telecommunication suppler SingTel provides national fixed-line services, mobile services, broadband, IP and internet access, and international telephone services more than 20 countries. SingTel still continue invest in strategic regional markets, including India, Indonesia, The Philippines, Thailand and Bangladesh for long term growth.According to the Singapore Telecommunications Report that pay-TV subscri ber base around 45,000 mioTV customers in June 2008. Over the quarter, there were some 2,000 net additions. The operator has continually expanded its range, they had further agreements with three Hollywood studios includes Disney-ABC International Television, News Corp units Twentieth Century Fox and Time Warners Warner Bros International Television to shift mioTV channel offering from 20 to 50.It is important for a company to develop their own distinctive competitive advantages. It must be unique, hard to imitate by competitors in the same industry and its create value to customers and benefit to the company.The Singapore-base telecommunication company Singtel has introduced pay-TV services called MIO TV. It has 33-channel mio TV and customers can select and pay what channel they want to catch out.Features like the TV program list channel guide let viewers glance program in advance for 30 days. The mio TVs picture-in-Picture feature that viewer wont miss out other channel showing and remain current channel as well.The viewer can preview any video before watching from library of HD movies and video and make pause, rewind and fast-forward all depend on customers.The viewer can enjoy high HD quality playback and control your favorite shows to watch and record just click of a button, you can record your favorite shows even when you away with Remote Digital Video Recording.The viewer can easy to search the favorite program by input keyword through remote control or via the virtual keyboard on the Television, the intuitive search engine offer intelligent results.The viewers can watch Channel NewsAsia, Mom-on-Demand and KBS world and some other available channels on the new mobile service, including the ads on Mio TV, as well as on mobile phone that SingTel selected Nokia phones to offer this service.The competitive advantage should be benefit to company increase shares of market and revenue returns and create value to shareholders, owners and customers. However, the competitive advantage may be imitate by competitors or create different advantages to more value to customers. One of the competitors of Singapore-base telecommunication company Starhub, they provide cable TV as well. But the exclusively offer by SingTel had been rewarded to broadcast UEFA Champions League and UEFA Europa League from 2009 to 2012. Subscribers can watch live matches broadcasting in Dual Sound both in English and Mandarin. Furthermore, SingTel had picked up a right to broadcast Barclays English Premier League matches and ESPN necromancer Sports on Mio TV.According to director of Mio TV Low Ka Hoe said Sport content is an important part of our offering, and this move signifies our ongoing efforts to expand and improve our selection of quality content for our viewers,The world wide service of SingTel is a opportunity for the firm continually invest and expansion in core foreign market of Indonesia, India and new market such as Vietnam and Pakistan and beyond Asia Pacific. Overseas investments are an essential part of SingTel strategy especially in saturated domestic market of Singapore. According to Singapore Telecommunications Report SingTel in June 2008 and its foreign associates shared a total of 197.714 mn, representing an increase of 45% over the year and 8.2% during the quarter.Evaluate strategy base on competitive advantageThe firm should create non-replace and valuable competitive advantage through create strong core competencies. Base on competitive advantage, Cliff Bowman and Richard DAveni use strategy Clock to further explain Michael Porter s generic strategy. The strategy clock represents different positions in a market where customers have different requirements in terms of value for money. The organization may have unique resources that others cannot imitate or obtain, for example, long-term established brand be a cost lead by apply price- found strategy or lower-priced strategy. However, in small domestic saturated market l ike Singapore, managers may take Differentiation strategy or hybrid strategy that provides unique or jolly different products and services from others to customer by pricing slightly higher.The strong and well-established competitive advantages can strength companys capability and strategy decision making. Therefore,ConclusionIn account of analyzing the strategy of Singtel, it surly gave the reason that why the Singapore Telecom is Singapores largest telecommunications company. This company has nearly 130 years of operating experience in the successful completion of this period to the worlds leading high- performance carrier changes. In business, SingTel seek a breakthrough innovation, development of local public sentiment for the internationalization of the business to treat the inability to adapt. Of course, these innovations are also based on SingTels own existing resources, it is an international network. More than that, Singtel not only in China for the global 5300 companies i n different countries offer a wide price quite competitive telecommunications services, but also SingTel has built its domestic large-scale telecommunications networks, and the annual investment of 1 billion new coins to be updated in order to enhance domestic and international competitiveness. SingTels overseas investment is a long-term strategy. Currently, SingTel has expanded to 20 countries and regions, their overseas operations include not only the traditional fixed, mobile phone networks and the Internet, voice data, but also related to satellite communications, submarine cable systems. In the past 10 years, strong adaptability and technical advantages SingTels international strategy is to promote time and time again to be successful. Opportunities always favor those who prepared. SingTels long-term development plan formulated by it can, and be good at the right time, choosing the right investments. The use of a merger or investment to enter unfamili