Biz Env Assignment 2 Task1 Q2
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Biz Env Assignment 2 Task1 Q2






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Biz Env Assignment 2 Task1 Q2 Presentation Transcript

  • 1. Assignment 2, task 1, Q2  (Sample answer) Business Environment Your name Your name
  • 2. Task • Use a range of examples to illustrate the Use a range of examples to illustrate the  relationship between market forces and  SingTel s responses SingTel’s responses (3 b) (3 b)
  • 3. Agenda • Market forces Market forces • Demand and Supply • Major factors that influence demand and  j f h i fl d d d supply • Major impact on SingTel • SingTel’s responses g p • Conclusion
  • 4. Market forces Market forces • Market forces are economic factors that affect Market forces are economic factors that affect  the price and availability of a product or a  service in a free market  service in a free market
  • 5. Demand and supply Demand and supply • Forces of demand and supply representing the Forces of demand and supply representing the  aggregate influence of buyers and sellers on  price and quantity of the goods and services  price and quantity of the goods and services offered in a market. 
  • 6. Excess demand Excess demand • Excess demand causes Excess demand causes  prices and quantity of  supply to rise • Example – Excess  demand of Iphone allows  SingTel to command the  prices and supply due to  its exclusive distribution  i l i di ib i arrangement with Apple   
  • 7. Excess supply Excess supply • Excess supply causes Excess supply causes  prices and quantity of  demand to fall • Example – Price of  broadband internet and  cable TV channels fall  when SingTel  introduced its  i d di brandband and Moi TV   
  • 8. Major market forces that influence  demand and supply  d d d l • New entrants and substitutes New entrants and substitutes – Potential threats from new entrants and  substitutes • Competition among exiting rivalry – Local competition in all markets • Regulatory forces – Enforcement of rules by the Telecom Regulators  
  • 9. Regulatory forces Regulatory forces • Singapore telecom market is regulated by  Info‐ g p g y communications Development Authority of  Singapore – Promoting effective and sustainable competition; Promoting effective and sustainable competition; – Promoting facilities‐based competition to the greatest  extent possible; – Relying on market forces; – Adopting proportionate regulation; – Remaining technology‐neutral; and Remaining technology neutral; and – Providing a transparent and reasoned decision‐making  process.
  • 10. Major impact on SingTel Major impact on SingTel • Loss of domestic market share Loss of domestic market share – More choices for customers • Restricted market influence – IDA’s rules and regulation
  • 11. SingTel s responses SingTel’s responses • Response to loss of domestic market share Response to loss of domestic market share – Embark on regionalisation enlarging its customer  base covering Singapore, Indonesia, India,  base covering Singapore Indonesia India Thailand and Australia – Build economies of scale through an enlarged Build economies of scale through an enlarged  market • Response to threats from new entrants Response to threats from new entrants – Building economies of scale through the enlarged  regional market  g
  • 12. SingTel s responses SingTel’s responses • Response to competitive rivalry (Singapore) Response to competitive rivalry (Singapore) – Backward integration by selling content, i.e.  MioTV instead of just merely a broad band instead of just merely a broad band  supplier – Exclusive distributorship for Apple’s I‐phone Exclusive distributorship for Apple s I phone  leading to a monopolistic position in the Asia  region • Response to Regulator – Collaboration with competitors by allowing them  p y g to share telecom network
  • 13. Conclusion • Market forces have impacted SingTel Market forces have impacted SingTel     • Si SingTel responded by its regional and channel  l d db i i l d h l strategies to strengthen its leading position in  Asia including Singapore telecom market   A i i l di Si l k