The report helps in the analysis of the Telstra Company which will be expanding their different operations in Singapore which is based in Asia. Global marketing is defined as the marketing on worldwide scale reconciling commercial advantage of the different differences in global operations along with different similarities and opportunities. International marketing is defined as the strategy which helps in encompassing countries from different regions in the entire world and coordinating with the economy of the country in which the company will expand the operations.
Telstra Corporation Ltd is the largest telecommunications company which helps in building and operating telecommunication networks along with markets voice along with different products and services (“Telstra – mobile phones, prepaid phones, broadband, internet, home phones, business phones”, 2018). The headquarter of the company is situated in Melbourne. The number of employees working at Telstra is 32000 till the year 2017 and the revenue earned by the company is A$26 billion. The different products which are being sold by the company are Fixed Line along with mobile telephony.
There are different kinds of opportunities with the market and business environments of Telstra in both Singapore and Australia market. The market share of the telecommunication industry is slowly declining in the market of Australia; therefore, the company needs to analyse the different growth opportunities to maintain high profits in the entire market. The strengthening kind of economy of Singapore will help Telstra in creating positive impact on the economy of Singapore (Blut et al., 2015).
Furthermore, the actual analysis of the different premium products in comparison to the current telecommunication company players in the Singapore market, however Telstra can differentiate the different kinds of products in the respective market to increase their presence and growth in the respective market accordingly as well. The free trade agreements of Singapore have enabled the company in implementing their position in the entire market in an effective manner (Zhang et al., 2017).
Situational analysis helps in analysing the business environment along with the macro and micro factors which are responsible in nature for analysing the capabilities and business environment effectively.
Political Factors play a major role in determining the different kinds of factors which can impact the company Telstra’s long-term profitability in the certain country or the market. The different kinds of political reforms and risks in Singapore market is quite low and this is the democratic country (Noyan& ?im?ek, 2014).
However, there are different government regulations wherein there is pushing for the regulatory reforms wherein there are different kinds of legislations and this has reduced the different entry barriers for the new players in the market.
Figure 1: Political Risk Index of Singapore
(Source: Hamari, Hanner& Koivisto, 2017)
On the other hand, the political push which has been backed by the different legislations will help in analysing that Telstra will sell copper and HFC networks in Singapore market as the government legislations are not harsh and this helps in entry of the new entrants in the entire market as well.
Economic Factors is the other factor in which this has been seen that the economy of Singapore is vibrant and free market economy. The economy is developing at a very fast pace and the corruption free environment helps the business sector to perform in an effective manner (Izogo & Ogba, 2015).
Figure 2: Economic Condition of Singapore
(Source: Hegner et al., 2017)
In case of Telstra, this can be analysed that the company has benefitted from diplomatic relations of Singapore and the geographic location of Singapore has allowed in order to develop the infrastructure for more than 30% of the active intra-regional capacity of the country effectively.
Social Factors is the other factor in which it can be seen that Singapore is other Eastern country and they follow the different kinds of traditional values. The rate of literacy of the country is high in nature and the rising expatriate population as this will help in during the growth of the telecom services and this has helped the company in increasing the productivity in an effective manner (Ellickson, 2016).
Figure 3: Population Growth of Singapore
(Source: Ferguson, Brown & Johnston, 2017)
Technological Factors is the other factor which helps the communication as this increases the overall connectivity. The time and cost of conducting the business in Singapore has been eased and this has increased the overall connectivity (Choi et al., 2017).
The information technology infrastructure of Singapore is praise worthy and the ecommerce and eB2C models have been flourished in nature as well. The manufacturing technology of the country Singapore is effective and this helps the company Telstra in becoming successful in providing telecommunication services to the customers as well (Zhuang& Babin, 2015).
Figure 4: Growth of Telecom Industry in Singapore
(Source: Dhar, 2015)
Furthermore, investment in digitization in Singapore market can help in enhancing the service offerings along with improving the experience of the different customers in the Singapore market.
Legal Factors is the other factor which is required to be taken into consideration for expanding the business of Telstra in Singapore. Furthermore, this can be seen that legal, regulatory and business settings are required to be in becoming supporting for the development of the mobile industry and economic growth as well (Mardanib et al., 2015).
However, there can be different kinds of complex telecom regulatory compliance laws in Singapore and this can be difficult for the company in providing the similar kinds of services of telecom like it does in Australia (Ortega et al., 2015).
Environmental Factors is the other factor in which there are different kinds of environment friendly solutions for sustainability and this provides the company Telstra the opportunity to expand the business of providing telecom services to the customers in the Singapore market (Lien,Cao& Zhou, 2017).
However, there are different kinds of emissions from the towers of the mobile in which this can be seen that this can be a threat for the company which will be negatively impacted and this can reduce the growth of the company (Kotler et al., 2016).
In the Australian market, this has been analysed that there is huge demand for the telecom sector as there are different sectors such as mobile plans and other broadband services which are being provided at lower prices to the customers. The sales of the company Telstra have been increased to about 9.6% between the years 2011-2014 and this is expected that the growth will continue in the future years as well (Kasiri et al, 2017).
Telstra tries to pay attention in crafting the marketing strategies in Singapore market by focusing mainly on age and gender. The segmentation can be done by Telstra in terms of the behavioural, geographic and psychographic segmentation in an efficient manner.
Behavioural |
The main segmentation is done on the basis of the status of the users in Singapore and the rate of usage in Singapore is high in nature as well. |
Geographic |
The main position of the company is in Singapore. Furthermore, the respective company needs to target different individuals in other countries in Asia such as Singapore as the GDP growth rate is high in nature and this will improve their business growth and gain more profit as well. |
Psychographic |
The personality and status of more than 45% population in the Singapore market is high and luxurious in nature and this will be beneficial for the company to gain competitive advantage |
The customers in Singapore prefer the different quality services related to telecom at an affordable rate and range. The customers prefer the best telecom services which are based on different kinds of segmentations. This has been seen that the mobile plans and broadband services differ from one another and this is based on relationships and branded quality as well (Blut et al., 2015).
Telstra adopted the competitive pricing strategy in the marketing mix and prices of the products are kept in a smart manner. Furthermore, Telstra generates different kinds of combo packages which is inclusive of broadbands and TV along with home phone. The minimum costs of the different services start from minimum of 420 dollars to 840 dollars (Cameron et al., 2016).
There are huge import duties and tariffs applied in Singapore market and all the different kinds of services and products are subject to excise duty and customs. The telecommunication services and products attract more than 65% if it is coming from any Asian countries and in the present scenario, this has been reduced to 25% which is dependent on level of the disassembly.
There are different players which are already existing in the market of Singapore and Singtel is one of the major competitors with above 45% market share in the entire market and the telecom industry is oligopoly market. It can be seen that Singtel tries to provide the similar services of telecom to the customers at a lower rate and the quality is same as Telstra and the broadband connections along with connections with suppliers are efficient in nature (Al-Dmour et al., 2016).
There are different kinds of sources of gaining competitive advantage in the entire Singaporean market as the services which will be offered by Telstra to the customers in Singapore will be of different prices and the quality will be efficient in nature (Huhman, Kelly & Edgar 2017).
Furthermore, this has been seen that Telstra is one of the largest telecommunication service providers to the customers in Australia and the main competitive advantage which will be gained by them is their advertising of the services which will be provided to customers (Tobey et al., 2016).
Furthermore, the Telstra has strong financial backing along with large economies of scale which will enable Telstra in benefitting from extensive kind of research and development budget and this will help in innovation of the different broadband services for the customers in Singapore.
There are different limitations or threats for Telstra in the market of Singapore as this can be analysed that there are different local competitors in Singaporean market. However, the brand name is popular all over the different countries, however there are different kinds of products and services which are provided by the other companies at a low rate.
This is one of the potential barriers and the company needs to low down their prices in the market of Singapore and additionally this can be seen that Telstra do not have such kind of relationships with the different suppliers in the market and distributors of Singapore as well. Additionally, this can be analysed that the cost structure of set up their telecom business along with import duties can hinder the market entry of the company negatively.
Strengths · The customer base is strong in nature in Australia and this will help Telstra in becoming more popular in introducing their services in Singapore market · There are more than 35000 employees which will be serving all the customers from more than 225 countries and territories in an indirect manner · The service portfolio is wide in range and there are active sponsorships in different kinds of sporting events · Telstra is expanding the different kinds of operations in Singapore and this will help them in expanding their operating margin |
Weaknesses · There is limited kind of liquidity position in the entire Singapore market · The market segment is extremely tough in nature which means the limited kind of market share |
Opportunities · There are huge strategic growth initiatives in the Singapore market after Australia · There is increase in demand for the telecom services in Singapore (Kotler & Keller, 2015) · There is growth of the IT services market in Singapore and this will increase the overall sales of the company |
Threats · In Singaporean market, this can be seen that there is huge and rapid changes in the technologies and this can be a huge issue for the company to gain competitive growth and market share · The regulations in the market of Singapore is stringent in nature · There is huge amount of competition in the market of Singapore which can cause huge issues for the company and on their growth as well |
After the analysis of the SWOT analysis above, this can be analysed that the entry of Telstra with the different kinds of telecom services in the market of Singapore will be advantageous in nature. The current market and business environment of Singapore is quite favourable in nature for the company and there is huge growth opportunity for the company in entire Asian countries specially in Singapore as there are huge number of customers in the market who are inclined towards different telecom services and Telstra provides huge satisfaction to the customers in the Singapore market as well. There is huge growing kind of preferences along with spendable kind of incomes of Singapore market will help Telstra in becoming more successful in the entire market in an effective manner.
Furthermore, there are different kinds of customers in the market of Singapore in which this can be seen that there are premium kind of customers along with usual and normal customers who prefer the different products and services related to telecom in Singapore which will increase the sales of Telstra in Singapore. However, there are different kinds of challenges in the market for Telstra in Singapore market in which this can be analysed that this will be challenging for the company to understand the culture of the individuals in Singapore and the preferences of performing the business.
Furthermore, this can be seen and analysed that there will be huge investment which will be required to be done by Telstra in order to build proper relationships with the customers. Furthermore, Telstra must invest heavily in the marketing during the few years while entering into the market as this will increase brand awareness and provide quality products and services to customers.
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