Question:
Discuss about the Strategic Business Analysis of Consumer Retail.
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
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 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.
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.
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
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.
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 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.
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.
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 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.
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.
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. 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.
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.
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).
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).
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).
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).
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).
|
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 |
|
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:
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.
Reference:
Authority, E. M. (2013). Implementing Demand Response In The National Electricity Market of Singapore. EMA, Singapore, Tech. Rep.
Behrangrad, M. (2015). A review of demand side management business models in the electricity market. Renewable and Sustainable Energy Reviews, 47, 270-283.
Chandramowli, S.N. and Felder, F.A., 2014. Impact of climate change on electricity systems and markets–a review of models and forecasts. Sustainable Energy Technologies and Assessments, 5, pp.62-74.
Chuan, L. and Ukil, A., 2015. Modeling and validation of electrical load profiling in residential buildings in Singapore. IEEE Transactions on Power Systems, 30(5), pp.2800-2809.
Kumar, P., & Bansal, S. (2015). SWOT ANALYSIS: WHAT DOES FDI HOLD FOR THE INDIAN RETAIL SECTOR IN 21TH CENTURY?. International Journal of Research in Management, Economics & Commerce, 5(1).
Shi, Y. (2016). SWOT Analysis of Purchasing Markets in the Region of Asia. Business and Economic Research, 6(1), 403-430.
Singapore, E. M. A. (2015). “Singapore energy statistics 2015.
Weron, R., & Zator, M. (2014). Revisiting the relationship between spot and futures prices in the Nord Pool electricity market. Energy Economics, 44, 178-190.
Wu, Y., 2013. Electricity market integration: global trends and implications for the EAS region. Energy Strategy Reviews, 2(2), pp.138-145.
Yan, X., & Chowdhury, N. A. (2014). Mid-term electricity market clearing price forecasting: a multiple SVM approach. International Journal of Electrical Power & Energy Systems, 58, 206-214.
Yang, W., Ho, T. C. T., Xiang, L., Chai, C. C., & Yu, R. (2014, October). An overview and evaluation on demand response program in Singapore electricity market. In Energy Conversion (CENCON), 2014 IEEE Conference on (pp. 61-66). IEEE.
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