singtel 41a4-ondhemandhe

Business StrategyBusiness Strategy

““Strategic ChallengesStrategic ChallengesIn A Turbulent Environment”In A Turbulent Environment”

Syndicate A4 - ONDEMANDHE:Dita Maulana – MohammadTaufanSilvi Oktavia Z. - Friska Indriani – Achmad Setiawan - Dian Gita Utami - Henry Gunawan

Overview & Problem DefinitionsOverview & Problem Definitions1

TOWS TOWS MMatriatrixx2

The Business Strategy DiamondThe Business Strategy Diamond3

STRATEGIC POSITIONINGSTRATEGIC POSITIONING4

- OndeMandhe -- OndeMandhe -

Singapore Telecom was founded in 1879. In 1971 this company Singapore Telecom was founded in 1879. In 1971 this company became the monopoly government-owned postal and became the monopoly government-owned postal and telecommunications services provider and in 1986 SingTel planned to telecommunications services provider and in 1986 SingTel planned to be a privatization with government own about 80% of Singapore be a privatization with government own about 80% of Singapore telecom.telecom.

In 1998/1999 there is a regional economic crisis that effect to the In 1998/1999 there is a regional economic crisis that effect to the Singapore Telecom. Singapore Telecom.

SingTel operated difficult business environment and faced increasing SingTel operated difficult business environment and faced increasing competition both locally and abroad.competition both locally and abroad.


SingTel has strategy to focus on the achievement of short and medium term profitability, to pursuit of globally competitive service and efficiency standards, high investments in proven technologies, and the establishment of a world class telecom infrastructure. There is also addition of Internet services as the value added

In March 1999, SingTel announced restructuring that involves of three new units : the consumer business unit, covering residential customers and small and medium-sized enterprises; the corporate business unit dealing with corporate accounts; and the global business unit concerned with Singapore Telecom’s overseas investments.


TOWS MatrixTOWS Matrix

Internal Factors

External Factors

Strengths (S)

-Having Singapore Telecom Mobile, SingNet, and Singapore post as their major partner in Asia Mobile Electronic Services.-New services such as maintenance of cable chips and ownership of Singapore Telecom’s own satellite.-SingTel group uniquely positioned to offer services throughout the e-commerce value chain-As the first ranked of the quality of the Singapore’s telcos infrastructure

Weakness (W)

-SingTel’s growth rate in recent years has become more relatively unstable.-Fear that public sympathy is not with Singapore Telecom

Opportunities (O)

-Singapore has highest GDP per capita in Asia.-Singapore is the most advance information technology hardware infrastructure in the world.-Merger and acquisitions-The higher penetration rate in Singapore-Refocused its overseas investment in Asia-Trend of deregulation and privatization

SO Strategies

- SingTel can try to do expansion to other countries outside Asia.

WO Strategies

- Improve the CRM (Customer Relationship Management).


TOWS MatrixTOWS Matrix

Internal Factors

External Factors

Strengths (S)

-Having Singapore Telecom Mobile, SingNet, and Singapore post as their major partner in Asia Mobile Electronic Services.-New services such as maintenance of cable chips and ownership of Singapore Telecom’s own satellite.-SingTel group uniquely positioned to offer services throughout the e-commerce value chain-As the first ranked of the quality of the Singapore’s telcos infrastructure

Weakness (W)

-SingTel’s growth rate in recent years has become more relatively unstable.-Fear that public sympathy is not with Singapore Telecom

Threats

-Customers demands and expectations-Rapid growing of technological change-New services such as Internet telephony or Virtual Private Networks -The Asian economic crisis-StarHub and Mobile1 as new competitor-Faced competition from foreign callback services.-Government create competition

ST Strategies

-SingTel can do the marketing research to find out about the customer’s taste.-Carried out a promotion campaign.

WT Strategies

-Keep up with the rapid changing of technology by doing many innovations.


ARENAARENASingapore Telecom covers telephone line, e-commerce, Internet, and mobile services. But Singtel has identified e-commerce and Internet-based activities as areas where there are significant growth opportunities with customer segments including corporate clients, small and medium sized enterprise, and residential consumer.

The Business Strategy DiamondThe Business Strategy Diamond


Overseas investments are an integral part of SingTel's strategy for long-term growth. The SingTel Group has expanded into overseas markets, with current investments in over 20 countries and territories.

VEHICLEVEHICLE

Singtel has initiated foreign investment in several countries, the strategic alliances in order to gain market entry and acquire technological skills, and to undertake diversification into IT and value-added services in order to sustain its growth and profitability.


COMPANY COUNTRY SINGTEL’S STAKE

Advanced Info Service Thailand 21.4%

Bharti Group India 30.4%

Globe Telecom The Philippines 47.3%

Pacific Bangladesh Telecom Bangladesh 45.0%

Telkomsel Indonesia 35.0%

Warid Telecom Pakistan 30.0%


DIFFERENDIFFERENTIATORTIATOR

Singtel increases its focus on its customers. Specific customers units have been set up to manage the diverse telecommunications needs of its different customer segments including corporate clients, small and medium sized enterprise, and residential consumer. SingTel already has extensive domestic and International infrastructure, but it still invest heavily in infrastructure and actively implement the latest technologies to offer innovative services.



StagingStaging&&

PacingPacing

SingTel’s strategy has been a focus on the achievement of short-and medium-term profitability, pursuit of globally competitive service and efficiency standards, high investment in proven technologies and the establishment of a world class telcom infrastructure.

EconomicEconomicLocicLocic

SingTel needs to continue to deliver in terms of service quality and financial returns. For that SingTel apply the same pricing policy or a little above the average price of similar industry standard, the reasons consumers will still buy at the discretion of the advantage of highest quality.



STRATEGIC POSITIONINGSTRATEGIC POSITIONINGSTRATEGIC POSITIONINGSTRATEGIC POSITIONING


Strategic PositioningStrategic Positioning


Answers #1 Answers #1

Strategy that made Singtel succeed in the past:

The main elements of SingTel’s strategy have been a focus on:

•the achievement of short and medium term profitability, •pursuit of globally competitive service and efficiency standards, •high investments in proven technologies•the establishment of world class telecom infrastructure.

CoreCoreCompetenciesCompetencies

SingTelSingTel• Having broad service: fixed-line telecom, e-commerce, Having broad service: fixed-line telecom, e-commerce,

Internet and Mobile ServiceInternet and Mobile Service• Having competence resourcesHaving competence resources• Ability in advance technology and innovative serviceAbility in advance technology and innovative service

DistinctiveDistinctiveCompetenciesCompetencies

SingTelSingTelAbility to combine low cost and technology to create Ability to combine low cost and technology to create quality productquality product



Singtel VISIONTo be Asia Pacific’s best multimedia solutions group.

Developing Vision•Singtel enable communication by breaking barriers and building bonds.•Singtel help businesses and people communicate anytime, anywhere and in various ways.•Singtel make communications easier, faster, more economical and reliable by:

• Breaking the barriers of distance, price, time and technology,• Building strong bonds among SingTel employees, and with our

shareholders, customers and business partners.•Singtel believe that creating and delivering value to its customers, employees and shareholders is fundamental to our business.


Key success factors

•Development of technology and IT•Competitive price•Acquisition to local company


Key success factors

Developing technology and ITCompetitive priceSingtel doing the corporate growth strategy through Diversification Strategies : Concentric. Singtel grow from the fix-line telecommunication to the mobile service and e-commerce, but still using the same resources. Financial:•Accelerate investment in the network to meet competitors challenge as they use state of the art technology•Make acquisition or mergers•Invest overseas to achieve greater growth rate •Pay for restructuring cost

HR Strategy:• Appraisal system• Reward system• Employee relation• Selection/Placement• Training and Development


Singtel should do to maintain its record of competitive success in the future: Changing the focus to the international market by implemented the acquisition strategy to local company, and develop the attractive business sector like e-commerce. By acquisition strategy, Singtel can use the local resources so it doesn’t need much fund to invest and can produce competitive price.

singtel 41a4-ondhemandhe

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