MT435_Case Study 3 Template.docxCase Study.docx

MT435_Case Study 3 Template.docx
Case Study #3 Written Assignment
Your name
MT435 Operations Management
Kaplan University
Date
Introduction
Question 1
Challenge one:
Challenge two:
Challenge three:
Challenge four:
Question 2
(a)
Proposed changes:
(b)
Implication one
Implication two
Implication three

Complication one
Complication two
Complication three
(c)
(01) Gantt chart
(02) Explanation of the Gantt Chart
Conclusion
References
MT435 Case Study 3.pdf
Case Study #3
KU Consulting

KU Consulting has been asked to bid on a large consulting job
with Albatross Anchor. In
order to win the contract for this consulting job a well written,
logical and highly
organized proposal must be written. It is your task/challenge to
write the proposal for re-
vamping Albatross Anchors Operations systems so that KU
Consulting may win the
$50,000 contract.
Using the mandatory template (found in Doc Sharing) prepare
your proposal by
answering (in detail) all of the questions posed below.
Your answers must demonstrate your
understanding of the concepts and principles
identified within the textbook, course information
and activities, but also from independent academic
quality research to solve these challenges.
While it is acceptable to use the textbook as
foundational material you must conduct
independent research, as well, using the Kaplan
virtual library and the Internet to find information
that supports your findings and conclusions. A
minimum of four academic resources, in
addition to the textbook, is required for each
section of the proposal.
Please note: Quotations should make up no
more than 10% of your proposal.

Requirements for successful completion of each section of the
proposal include:
➢ Prepared using the mandatory template for each section of the
proposal (the
templates for each section can be found in Doc Sharing of this
virtual classroom).
Failure to use the mandatory template will result in an
automatic reduction of one
grade level.
➢ Proposal Cover Page
➢ APA style reference page.
➢ The body of the paper must be four full pages long (this does
not include the cover
or reference pages).
➢ Body of the paper must be double-spaced (this includes
spacing between
paragraphs and before/after headings).
➢ One inch margins on all four sides of the page.
➢ Times New Roman 12-font only.
➢ Indent the first sentence of each new paragraph ½ inch (this
is already set in MS
Word as the first “Tab” setting”)

➢ Grammatically and mechanically sound.
➢ Introductory and concluding paragraph(s).
➢ A minimum of four academic quality research sources in
addition to the textbook).
➢ Citations, within the body of the paper, identifying source
materials and in APA
format are required along with corresponding reference page
listings.
The following documents are in doc sharing.
● MT435 Case Study #3.pdf
● MT435 Case Study #3 Template.doc
Please note*
1. Do not use Wikipedia, wiki’s, Answers.com, Ask.com, online
dictionaries, or online
encyclopedias for this project. As a senior level student you are
responsible for
independent research and for veracity of source.
2. A search engine is not a source but a tool used to find a
resource. For information
on APA referencing of internet based information use the
information on APA
formatting contained within the Kaplan Writing Center for more

information or you
may use the Kaplan Guide to Successful Writing that is located
in the doc sharing
area of this virtual classroom.
Albatross Anchor Case Study #3 (Note: This is not a real
company)
Introduction
Albatross Anchor is a small family owned business that began
in 1976 with four family
members. Albatross anchor has grown exponentially and now
employs one hundred and
thirty people. This one location/facility is situated on twelve
acres located in a rural
suburb of Smalltown, USA (Please note* the building and
facilities for Albatross Anchor
are landlocked).
The plant* and the administrative offices are located in the
same building.

(*Note: The plant includes: manufacturing, the shipping
department, the receiving department, raw
materials storage, finished product storage, and the foundry).
The administrative offices are in the front of the building and
the plant is located directly
behind the administrative offices (see diagram). The
administrative offices have issues
because they are somewhat shabby, disorganized, and run
inefficiently.
The plant is antiquated, worn, dirty, and technology-deprived
and it no longer meets all
US safety and environmental standards.
The owners of this small business have added on various
processes as needs arose;
within the limited space of the plant. When Albatross Anchor
first opened its doors their
expertise was in the manufacturing of bell/mushroom anchors
(using a foundry process).
In 1989, in response to international competition, the owners of
Albatross Anchor made
the decision to expand the product line to include fabricated
snag hook anchors.
Customers

Albatross Anchor is a manufacturing factory that sells only at
the wholesale level.
Albatross Anchors sales their products in two ways:
(01) Distributors that act as the middleman. The distributor
accepts bulk delivery
of anchors at their large distribution centers. At the distribution
center the bulk
shipment of anchors is broken up into smaller batches and
shipped to individual
retail locations.
(02) OEM customers that purchase anchors in large batches to
be used as a
component in the manufacture of boats.
Albatross Anchor does not sell retail. They are strictly a
wholesale organization.
Products
The bell anchor is manufactured primarily through a foundry
process in which ore is

transformed into a liquid state and then poured into molds as
part of the production
process. The bell anchor is used primarily by freshwater marine
craft.
The snag hook anchor is fabricated through the bending and
welding of iron rods and flat
iron into a hook design. The hook design is best when used in
saltwater. This hook design
snags bedrock and seaweed which holds the marine craft at
anchor. The snag hook
anchor is used primarily for small to medium sized saltwater
marine craft.
Each anchor is produced in multiple sizes to accommodate the
type of watercraft, the
size of the watercraft and the place where the anchor will be
used (saltwater or
freshwater).
Manufacturing
Each anchor type requires its own unique equipment and
manufacturing process. Yet,
both manufacturing areas share the same shipping area,
receiving area, warehouse area,
and administration offices.
The manufacturing area of the plant has had to change to
accommodate the manufacture

of the two separate types of anchors. As each anchor requires its
own manufacturing
challenges the manufacturing line must be completely changed
over each time the anchor
type is changed. The time to switch over from one
manufacturing process/operation to
the other manufacturing process/operation is 36 hours.
The plant space is at a premium and warehousing space for raw
materials and finished
product is limited and located at the far south end of the
building.
Plant antiquation and safety issues result in small batch
production only. As a result of
this limitation, lead time for exceptionally large bulk orders is
three to four weeks.
Costs
Current manufacturing costs are $8.00 per pound for
mushroom/bell anchors and $11.00
per pound for snag hook anchors. Albatross Anchor charges the
same per unit as their
competitors. However, the profit margin can sometimes be as
much as 35% less (on
some of the anchors) because of operations inefficiencies.
Shipping challenges

Outgoing freight
Product size, bulk, and weight and maximum load limits require
that the anchors be
shipped by large truck, rail, or large ocean-going freighter.
Domestic orders are usually
shipped by large truck. International orders are shipped by rail
and ultimately by large
ocean-going freighters. These are the only two methods of
product shipment.
Incoming freight
Receipt of raw materials is by rail. Prior to the sale of anchors
into the international
market all shipments of finished product went out completely by
truck and therefore all
shipping activities were limited to the east side of the building.
Now, because of the limitation of shipping product into the
international marketplace, all

product shipments for international delivery go out of the
receiving dock for the initial leg
of shipment by rail. Prior to expansion into the international
marketplace shipping had
been limited to the shipping department and receiving was
limited to the receiving area.
However, with this change in international shipping the
receiving area must now do
double duty – shipping of international orders as well as receipt
of all incoming raw
materials.
Please view the below representation of the current
building/facility set up.
Case Study #3
Question One
Refer back to your answers in Case Study #1 and Case Study
#2. With that information
in mind, and based on the Albatross Anchor scenario/case study
make recommendations
to Albatross Anchor for at least four of the following
challenges:

List of challenges
(a) Time management
(b) Cost management
(c) Quality management
(d) Performance management
(e) Enterprise project management
(f) Technology adoption
(g) Supply chain management
(h) Distribution management
Question Two
As the consultant for KU Consulting, you have been authorized
to change the existing
facility (limited construction budget) and/or refine the process
flow of the manufacturing
area. All changes must be completed within a 60-day window
with the majority of the
changes happening at night when the plant is idle or on the
weekend when the plant is
idle.

(a) List and detail the proposed changes and/or alterations.
Please explain why you
chose what you chose, give the rationale behind your choices
and finally, substantiate
your work.
(b) List and detail three implications and three complications
that may occur as a result
of the recommended changes. Remember activities in one area
of the facility may have
an impact on other areas of the facility.
(c) Create a Gantt chart showing a timeline for when the
different changes proposed
should be made, detailing which changes may overlap and
showing how long each
change will take to institute. Provide information to support
your decisions and to explain
your choices as shown in the Gantt chart.

CONTENTS
PG
EXECUTIVE SUMMARY1
COMPANY BACKGROUND2-3
MACRO-ENVIRONMENT ANAYLSIS3-14
· Political Factors
· Economic Factors
· Social Factors
· Technological Factors
· Legal Factors
· Environmental Factors
INDUSTRY ANALYSIS14-22
· Rivalry Among Existing Competitors
· The Threat of Entry
· The Threat of Substitutes
· Bargaining Power of Suppliers
· Bargaining Power of Buyers
RESOURCES AND COMPETENCIES22-30
· Resources
· Competencies
· Distinctive Capability
· VRIN Analysis
· The Value Chain

· Primary Activities
· Inbound Logistics
· Operations
· Outbound Logistics
· Marketing and Sales
· Service
· Support Activities
· Firm Infrastructure
· Human Resource Management
· Technology Development
· Procurement
STAKEHOLDERS ANALYSIS30-36
· External Stakeholders
· Customers
· Suppliers
· Partners and Investors
· Info-communications development authority of Singapore
(Government)
· Internal Stakeholders
· Employees
· Board of Directors
CURRENT STRATEGY36-41
· Miles and Snow
· SAFe
· Suitability
· Key Opportunities & Constrains
· Acceptability
· Risk
· Return
· Reaction
· Feasibility
· Financial
· People & Skills
· Integrating Resources

CONCLUSION42
References43-49
Assignment Group 24
Executive Summary
Singapore Post Limited (SingPost) is responsible for the
country’s postal system and services.
Being the leader of mail, logistics and ecommerce solution in
Singapore and Asia Pacific region, they serve more than 10
countries. Hence in this report, an analysis of SingPost’s
business will be done to find out how they are able to sustain
and achieve desirable performances throughout the years with
the strategy they adopted.
Firstly through Singapore PESTEL analysis, we examine the
macro-environmental conditions SingPost operates in and
discovered that is it currently of high advantages, where it is
politically sound, strong economically with skilled workers
around. Besides, they are also having technologies that are up to
date and available for their business purposes. Internally,
Michael Porter’s five forces model helped us understand where
the real forces lie in the market. The low threat of entrants
caused negligible rivalry in the industry. That led to the
decreasing power of supplier and buyers. We also identified that
the threat of substitutes is now the strongest force that may
negatively affect SingPost’s sustainability in the further.
This report also consists of the value chain model in regards to
the analysis of the resources and competencies SingPost
acquired them to achieved sustainable competitive advantage in
their industry. Last but not least based on our findings, we had

identified the key strategy that SingPost adopted and has
evaluated it through the SAFe model if it is suitable, acceptable
and feasible. Therefore, based on the analysis that we have
concluded on the strategy that SingPost is currently practising,
it is viable and they should focus on.
Company Background
Singapore Post is founded in 1819. It is currently Singapore’s
leaders of mail, logistics, e-commerce solution in Singapore and
Asia Pacific region, servicing in more than 10 countries. As
they dominant in Singapore, their services are distributed in
every parts of the town serving the needs of everyone.
Initially, the Post Office was just a single mail office situated in
the Parliament House. As trade blossomed, the Post Office
became a separate department. After Singapore gained
independence, the Singapore Postal Department became wholly
independent and was known as the Postal Services Department.
In 1982, the Postal Services Department became part of the then
Telecommunication Authority of Singapore, known as
Telecoms. After the postal service was privatised, SingPost was
incorporated on 1 April 1992 (National Library Board, 1992;
Fig. 1).
(Fig. 1)
To cope with the growing amount of mail and parcels, it moved
into a complex with a facility that can automatically sort out
mails and parcels based on postal codes. They also invested
heavily in technologies to provide better services and quality
(OCBC Investment Research, 2009). SingPost managed to get
itself listed on the mainboard of the Singapore Exchange on
13th May 2003.
SingPost has outstanding results, both locally and
internationally through many years of hard work. As a result,
many investors see them as a potential investment and begin to
invest and join venture. Today, SingPost has become one of the
largest distribution networks, having revenue of $919.6 and net

profit of $157.2. SingPost value their services and productivity,
adopting and maintaining high standards with effective and
efficient services that satisfy their customers.
Macro-Environment Analysis
PESTEL analysis examines the environmental influences that
might affect the success or failure of the strategies
implemented. This analysis also enables companies to identify
their operating environment conditions and provides
information that might assist them in analysing situations that
might occur in future (Johnson, Whittington & Scholes, 2011).
Political Factors
Political risk in Singapore is relatively low. One of the main
reasons for this is down to having a strict government.
Singapore only has one ruling party, The People’s action party
(PAP) since it gained independence (PAP.org, 2015). They have
always held the large majority of seats in the parliament
(Elections Department Singapore, 2015). As they always had
more than 2/3 of the seats, they have effective control in the
decisions made for the country. Political interference in
business is also very minimal and thus, it brings about the
benefit of enjoying the outstanding political stability that the
region continues to offer to the international business world,
which is a positive political implication for businesses like
SingPost to thrive. The government tendency to make decisions
in priority of the economic growth in Singapore has resulted in
Singapore achieving first place in Ease of Doing Business
ranking for 9 consecutive years (World Bank Group, 2014; Fig.
2).
(Fig. 2)
With reference to Singapore’s Ministry of Manpower (2013;
Fig.3), in recent years foreign workforce in Singapore has been
increasing steadily. According to Yahoo News Singapore
(2011), many Singaporeans showed displeasure over the matter

as it limits job opportunities for locals, but companies benefit
from it as foreign workforce are generally cheaper and easier to
hire. Lately, Singapore Prime Minister Lee Hsien Loong
mentioned that Singapore will be clamping down the number of
foreign workforce to achieve a better balance for the locals and
this might result in a challenging environment for the
companies in future (Channel NewsAsia, 2015).
(Fig. 3)
According to the Singapore Economic Development Board
(2014), Singapore was ranked as the 3rd least corrupt country in
the world. This is largely due to Singapore’s policy of paying
high ranked officials top salaries to make them corruption free
(New York Times, 2007). This has also resulted in keeping
ministers’ performance high, as things like security, taxes
enforcement and infrastructure are always spot on. Businesses
are very rarely disrupted by incidents like terrorism attacks and
riots for the exact reason.
Economic Factors
Singapore has been an economically stable country and has one
of the fastest growing economies. With a GDP of $46,569.7 in
2010, the country’s GDP has steadily grown up to $56,286.8 in
2014 (World Bank, 2014; Fig. 4). Due to its economic stability,
Singapore does not face many financial and economic
challenges, such as hyperinflation (Singapore Government
Securities, 2015). Singapore also enjoys a free trade agreement
with many countries globally (International Enterprise
Singapore, 2014), which facilitates companies import and
export products efficiently. SingPost greatly benefits from this
as mails and supplies barriers are minimized in many other
countries.
(Fig. 4)

Singapore’s high per capital income has resulted in considerable
spending power from the local consumers (World Bank, 2013;
Fig 5). This means that companies entering the market can
achieve good growth as locals are able to afford high priced
goods. Moreover, Singapore’s transportation and various
infrastructures are among the best in the world, which is yet
another positive for companies. Having the best airport in the
world would enable SingPost to have an advantage over its
global rivals in air freight (Business Insider, 2014).
(Fig. 5)
The decreasing oil price also helps SingPost’s cause. According
to NASDAQ (2015; Fig. 6), the crude oil prices have been
declining for the past few months and CBC News (2015)
predicted that it will fall further in future. This will in turn
benefit Singapore as electricity and fuel expenses are reduced,
therefore lowering operational costs for businesses (The Strait
Times, 2015).
(Fig. 6)
Last but not least, Singapore’s interest rate for doing business
remains one of the lowest in the world (Trading Economics,
2015; Fig. 7). This would allow companies to borrow money
cheaper than any other countries as rates are favourable and it
would thus enable many businesses to grow swiftly here (World
Bank Group, 2015).
(Fig. 7)
Social Factors
Singapore has a multi-racial population of 5.4mil and has one of
the highest employment rate in the world (Singstat, 2014; Fig.
8). However, according to Singapore Business Review (2014)
Singapore’s population is ageing rapidly. Today Online (2015)
reported that Singapore citizens aged 65 and above grew from

220,000 in year 2000 to 440,000 in 2015 and is predicted to
grow to 900,000 in 2030. This will affect the labour force
participation rate as it is likely to get smaller than the current
68.1% in the near future (Singstat, 2014; Fig. 9). Companies
might find it more difficult to hire suitable candidates into their
companies.
(Fig. 8)
(Fig. 9)
Having said that, one plus points about Singapore is their
society structure. Singaporeans value hierarchy relationship in
their society as they have basic respect between employees and
employers, teachers and students, as well as parents and
children (Qiang, 2012). The living standard is also one of the
highest in the world as the median monthly gross income is
$3770 (Singstat, 2015; Fig. 10). Lastly, Singapore offers highly
skilled workers as literacy rate stands at 96.1% whilst there are
about 92.2% of secondary or higher qualification holders
(Singstat, 2013). Most of these Singaporeans hold higher skilled
jobs currently as compared to the past and it is forecasted to
increase in future (Ministry of Manpower, 2015; Fig. 11). All of
the above would give companies better quality workers.
(Fig. 10)
(Fig. 11)
Technological Factors
Singapore is one of the leading countries in terms of innovation
and advancement (Qureshi, 2010). Technology advancement has

contributed to global progression, enabling companies to be
more efficient. In modern days, most companies rely on
technology in their daily operations to benefit from it, not only
in the reduction of costs of business, but also as an approach to
expansion (Thiel, 2015). One of the most common approaches
that companies have used in this regard is its advancement in e-
commerce as companies can operate online shops which operate
on low costs and can achieve high net returns. Singapore has
about 4.8mil internet users and online shopping usage is
growing rapidly (iDA, 2013; Fig. 12). It is estimated that e-
commerce revenue will reach to about $4.4billion by the end of
this year, an exceptional figure given the size of population here
(Yahoo News Singapore, 2014; Fig. 13).
(Fig. 12)
(Fig. 13)
Technological innovation can also aid their growth in the
modern global market. Technology infrastructure in Singapore
is advanced as connectivity is fast, efficient and easy to access.
Many varieties of high-tech gadgets are available locally to help
companies save costs and improve efficiency, making Singapore
an attractive place for companies. Research and development
has always been a key focus for Singapore’s long-term
economic development as Prime Minister Lee Hsien Loong
announced in September 2010 that the government would spend
$16.1billion on such research and enterprise, which is a 20%
increase of the past decade (AsiaOne, 2010). With constant
technology advancement, an integrated automated system was
developed for SingPost. According to Toshiba Asia Pacific
(2015), these machines helps in sorting of letters and packages
in a faster and more accurate manner. These systems assist
mailing companies to increase their productivity as well as
efficiency.
Legal Factors

Singapore has many legal policies under consumer, safety and
labour laws which protect both the consumers and companies
(Henry, 2008). In recent times, Singapore has been focusing on
promoting business growth through supporting improvement in
IT infrastructure. In this light, it has continued to develop laws,
regulations, and policies that will see this goal through, such as
the Personal Data Protection Act 2012 (PDPA). This law consist
of several rules governing the collection, use, disclosure and
care of personal data (Personal Data Protection Commission
Singapore, 2014). As more companies are been using
technology for their businesses nowadays, online security is an
important consideration to companies. With online security in
Singapore secure, people tend to have more confidence when
they enter their personal information online. Singapore has also
incorporated Lemon Law, which will not only benefit
companies or consumers, but boost various industries in the
long run (CASE, 2012).
Environmental Factors
There are various environmental factors that Singapore values,
such as waste management and recycling. A number of
campaigns are organized by the Government to promote
environmental-friendly industrial operations for businesses.
President Awards are given out to reward companies that
achieved sustainable environment (Ministry of Environment and
Water Resources, 2015). In New York, the increase in
popularity of ‘going paperless’ nowadays causes many
companies to adopt similar practices globally. Many banks also
provide incentives to reward customers who opt for electrical
billings instead of paper bills and statements (NASDAQ, 2011).
Many modern companies are participating in CSR activities to
establish good reputations. According to Forbes (2010), a
survey shows that 88% of the respondents feel that companies
should make contributions to the society and the environment.
However, Tan (2008) noted that corporate social responsibilities

remain low in Singapore despite having one of the finest
environment policies.
Conclusion
In a nutshell, it is important for SingPost to take into
consideration of how these factors would have an impact when
it comes to decision-making. By gaining better understanding of
their surroundings, SingPost can better handle future situations
that might arise. As of now, the current macro-environment is
highly advantageous for SingPost, but as mentioned there are a
few challenges likely to arise in future.
Industry Analysis
In this analysis, we will be using Porter’s Five Forces
framework to go in-depth on the postal industry outlook in
Singapore. As his model is aimed at identifying the five
particular forces which is most likely to affect the
competitiveness of an industry (Hill & Jones, 1995), it will help
us evaluate factors from both the domestic market in Singapore,
as well as the international market.
SingPost falls under Monopolistic Industry according to our
understanding of Porter’s definition. According to iDA (2013),
SingPost is one of four companies alongside DHL, Asendia and
WMG to be granted a mailing service license in Singapore.
However, SingPost dominates the entire market to the extent
that other companies find it uneconomic to compete.
Rivalry among Existing Competitors
This force is one of the key determinants which directly affect
an organisation profits. Intense rivalry among existing
companies in an industry can affect many factors such as
industry competitiveness, demand and supply capacity,
differentiation among companies and height of exit barriers
(Lee, Kim & Park, 2011). Competition in the postal industry is

mostly based on quality of services as prices do not differ
much. Therefore globally, competing firms always focus on
promoting their services such as reliable deliveries and quick
turnaround to try and gain a foothold in this competitive
segment (Myerson, 2015).
The postal industry in Singapore is extremely uncompetitive due
to the nature of the competition. SingPost has been established
in Singapore for close to 200 years now and it remains as the
only company locally to offer mailing services around the entire
country (iDA, 2013). The main reason is because the
government did not allow foreign companies to enter the market
till April 2007 where it finally decided to end SingPost
monopoly by allowing other companies to apply for a postal
license. Before that, SingPost held an exclusive public postal
license for the majority of its history in Singapore. This
resulted in SingPost dominating the postal market here for a
period even longer than the country has been independent. It has
become such a well-known and reliable brand here while
integrating many of its services with the local culture and
livelihood here that it is not viable for any other companies to
enter the industry. Singapore is a small country and with the
postal services demand declining yearly as shown in the yearly
annual reports (SingPost, 2015; Fig. 14), there is simply no
point for any other companies to try and gain a market share
here as profitability forecast is in the negative and exit costs are
high. Thus it has a complete monopoly over mail services
offered here which negates the competitiveness of the industry.
They have complete autonomy to decide market prices, choice
of suppliers as well as the amount of services provided. This is
a particular disadvantage for consumers as only competition can
breed success and the lack of competition meant the industry
has not grown or improved significantly over the past 50 years
since Singapore became an independent country. Unfortunately,
the situation is not going to change in near future as mailing is
on the decline and major companies are unwilling to enter the

market.
The Threat of Entry
Barriers of Entry depend on the presence of entry barriers and
the reaction that can be expected from existing competitors
(Hunger & Wheelen, 2003). According to Porter (2008), barriers
to entry are the obstacles that need to be overcome by a new
entrant if they were to enter an industry.
Porter (2008) states that Restrictive government policy is one of
the barriers to entry as it can hinder new entrants in an industry.
With reference to iDA (2007), by ending SingPost monopoly,
liberalisation will significantly benefit business users which
takes up large percentage of local domestic mail volume, more
than users of stamped and franked mail. Hence, this decision
made has open up new opportunities to attract fresh players into
the market segment. Competition will then promote further
innovations in the local postal industry and increase incumbent,
in this case SingPost, incentives to improve its service quality
and efficiency. In addition, SingPost was designated as a Public
Postal Licensee and they are required to perform a set of
Universal Service Obligations determined by iDA. Moreover,
industry players interested in providing domestic and
international basic mail services in Singapore shall first obtain
a licence from IDA (iDA, 2007). Hence, this strict regulation
has led to low threat of entry.
As mentioned above, SingPost has been established for close to
200 years, and it remains as a dominant player in the basic mail
market sector in Singapore. This has resulted in SingPost
establishing a strong rapport with its existing customers (e.g.
Banks, Insurance Company, Government agencies). According
to Mynewdesk (2015), SingPost has engaged in more efficient
technology such as new automated integrated sorting machines
for example, to remain committed to providing customers a
better service experience. Therefore, they able to produce at

larger volumes, enjoying lower costs per unit as they can spread
fixed costs over more units. This scale of economies in
production has given SingPost significant cost advantage over
any new entrants as it will be very costly for them to match with
SingPost and until they reach similar volume, they will have
higher unit costs (Johnson, Whittington & Scholes, 2011). Such
advantages SingPost holds over its rivals will add to the low
threat of entry into the industry and it’s likely that the threat
will remain low as the need for mailing continues to decrease.
The Threat of Substitutes
Johnson, Whittington & Scholes, (2011) defines substitutes as
“products or services that offer a similar benefit to an industry’s
products or services, but by a different process”. Technology
has brought significant changes to the world today. It allows
instantaneous communication easy and affordable. With the
introduction of email, information are now transmitted
instantly, anywhere and anytime at negligible costs.
According to SingPost (2014; Fig 14), their annual report
showed drastic decline in mail percentage for both their revenue
and operating profit. Email has successfully become the outright
substitute of traditional mailing and that has reduced the
demand for letters as there is no switching cost for the
customers. In addition, as technology becomes part of our lives,
internet access has allowed us to even check our invoices and
bills online, making part of SingPost hybrid mail services
obsolete. Therefore, this resulted in the decrease of traditional
letter mail volumes which was reflected in the weaker
performance of domestic mail and hybrid mail over the past
decade (SingPost, 2015). Not to mention, the constant
advancement in technology had open up many other
communication channels (WhatsApp, Skype etc) that can
indirectly substitute traditional mailing. It like very likely that
the situation is only going to deteriorate in the foreseeable
future as technology becomes an even bigger part of our lives

and we no longer see the need to send traditional mails like this
(Schmid, 2011).
(Fig. 14)
Bargaining Power of Suppliers
Bargaining Power of Suppliers refers to the ability of Suppliers
to affect one’s business (Porter, 1990). If the suppliers are
easily replaceable and its supplies are easily substituted, they
will hold less power as compared to the opposite scenario.
Thus, suppliers can actually be a threat to a business as some
supplies and services are unique, making switching costs very
high and not feasible (Porter, 1980).
For postal industry, SingPost have to use various suppliers such
as freight, basic mailing materials, electronic platforms and
software. With reference to a similar study in USA by Hendel
(2015; Fig. 15), we can see that there are many suppliers in the
market offering similar services. This meant that the high
concentration of suppliers will decrease their bargaining power
to SingPost as switching costs remain low and the industry
itself is more important for suppliers than vice versa. Thus,
threat of forward integration in the industry is virtually non-
existent as it is not a pivotal factor that determines if a postal
company boom or bust. In the history of the postal and logistics
industries around the world, very few attempts are made to
acquire another supply company as suppliers are in abundance
and generally reliable with regards to materials and services
(Managan, Lalwani & Butcher, 2008). Postal companies
generally prefer to have a strategic partner instead, like in the
recent case of SingPost and Singapore Airport Terminal
Services Limited (SATS) (Channel NewsAsia, 2015). It is
unlikely that this will change in future as the industry has
remained stable in the last decade and supplier determinants
will therefore remain relatively constant.

(Fig. 15)
Bargaining Power of Buyers
Bargaining Power of Buyers refer to the ability of Buyers being
able to squeeze profits out of an industry, with reference to
Porter’s Five Forces Model (Hill & Jones, 2013). Buyers are
powerful if they have negotiating leverage relative to industry
participants, forcing down prices and at the same time receiving
better quality or extended services (Porter, 2008).
According to Porter, there are a number of circumstances where
threat of buyer is powerful. However, there is little threat
towards SingPost in the mailing business industry. That is
because firstly, for mail businesses such as bulk mail in
Singapore, buyers do not have any other option, other than
SingPost. This also meant that buyers do not have switching
costs to be able to force down the prices. Secondly, even if
buyers purchase in large quantities, they do not have much
rights to bargain further as SingPost has legalized terms and
conditions where buyers have to follow closely with.
Furthermore, SingPost have the rights to refuse buyers or even
review the charges without prior notice under some
circumstances (SingPost, 2015). Lastly, there are many other
buyers which come from large organisations of different
industries, such as Banks, Telecoms and Schools that needs
SingPost. There, the supply industry of SingPost does not
depend on any buyers. Hence, the strength of this force is rather
low. Moreover, there is no competitor since the expiry of
SingPost’s monopoly to provide Basic Mail Services on 31
March 2007 (iDA, 2007). Therefore, it is safe to say that the
threat of bargaining of power is low even in the long run with
low price sensitivity and large volume of buyers.
Conclusion
Porter’s 5 forces is set in a way that all of the determinants

mutually affects one another and this is crucial in helping us
understand where the real forces lies in the market (Dulcic,
Gnjidic & Alfirevic, 2012). For example, the low threat of
entrants has resulted in negligible rivalry in the industry. That
in turn causes the power of suppliers to decrease as they only
have one viable client to serve. It is then passed on to the
consumers as they bear the brunt of not having another service
to turn to, weakening the power of buyers. The forces are all
inter-linked and fundamental to each other (Wu, Tseng & Chiu,
2012). This has thus shown us how such an analysis would be
of good use to help companies position themselves strategically
to take advantage of the ratio of forces itself.
As per our analysis above, the threat of substitutes is by far the
strongest force which can make or break SingPost profit
structure in the distant future if they are not careful. SingPost
must be flexible to diversify their business further in order to
cope with the changing environment. For instance, film camera
pioneers Kodak failed to re-invent themselves to cope with the
substitute threat of digital cameras and has unfortunately filed
for bankruptcy (Bloomberg Business, 2012). The same fate can
easily befall SingPost if they do not branch out their services
and become the next company to be stuck in time. Fortunately,
High (2015) has already noted that SingPost is changing its
focus to e-commerce and digital business to cope with this.
PESTEL factors would also affect the determinants of the 5
forces. For example, economic factors can affect how suppliers
function. Under bad economic conditions, threat of suppliers
decreases even more as they are more dependent on their
clients. Similarly, this would also affect the purchasing power
of buyers, decreasing their threat even further. In the current
climate, the PESTEL analysis is mostly positive for Singapore
and that has resulted in SingPost holding a strong bargaining
position towards its rivals, consumers and suppliers. It is
predicted that such an advantage gap in terms of opportunities

and threats will only widen in future as economic forecasts are
good for the industry (Channel NewsAsia, 2015). Level of
competitiveness will thus maintain its current levels, while
profitability will increase.
Resources and Competences
Every company have resources and competencies that they can
tap on to provide sustainable competitive advantage (Johnson,
Scholes & Whittington, 2014). A successful firm has
competitive advantage whenever it has an edge over its
competitors in attracting customers and defending against
competitive forces. One basic route to competitive advantage is
by identifying the two components of strategic capabilities,
namely resources and competencies of an organisation.
Resources
The organisation resources can be defined as assets that are
owned or controlled by the organisation (Amit & Schoemaker,
1993). It can be split into 2 components, namely Tangible and
Intangible Resources.
Tangible Resources are physical assets of an organisation such
as plant, people and finance. However, not all traits of a firm’s
physical assets are strategically relevant resources. In relation
to SingPost, we have identified Plant and People as the
organisations. On the other hand, Intangible Resources are non-
physical assets such as information, reputation and knowledge
(Amit & Schoemaker, 1993). The table below summarises the
aforementioned resources we have identified.
Competences
Competences refer to an organisation’s capacity to use or
deploy resources, usually in combination to affect a desired end
(Amit & Schoemaker, 1993). Through intricate interactions with
a firm’s resource, such capabilities can develop itself and

provide enhanced productivity of an organisation’s processes to
give them an added value over its competitors (Barney, 1991).
Firstly, its partnership with Alibaba has further build a leading
e-commerce logistics platform to service the rapidly growing
ecommerce business reaching out to more users across Asia
Pacific and beyond (Azhar, 2015). Therefore, it has built its
competencies by integrating low-cost e-commerce logistics
model covering freight, customs and regulation, warehousing
and fulfilment competencies (SingPost, 2015).
Secondly, SingPost received the Service Excellence WSQ
Recognition Award 2013 from the Workforce Development
Agency, for its commitment to service excellence training
across three years. (SingPost, 2015)
Lastly, SingPost have the ability to retain talents through re-
employment policy by extending the career path of postmen,
couriers, customer service officers and managerial and
executive posts (case-by-case basis). This will in turn benefit
the organisation by retaining experienced talents for training
and development to enhance skills and confidence towards
employee job. This will also benefit the firm by minimise
recruitment costs (Kor & Wong, 2011).
Distinctive Capability
Distinctive Capability may be defined as an organisation having
unique capabilities that are of value to customers which others
cannot imitate (Johnson, Scholes & Whittington, 2014). As
mentioned, SingPost has earned itself a trusted household name
in Singapore and in recent years also achieved global
recognition. They are widely acknowledged to be an efficient
postal provider and such a brand takes a long time to build up
over the years which others can never catch up (Middleton,
2010). Thereafter, SingPost have not stood still and continues to
improve by purchasing new machines and motorbikes to

increase efficiency, productivity and accuracy of their services.
Thus, customers can now receive their letters faster as more
mails are sorted daily. SingPost also builds excellent
relationship with its partners as shown in many instances above
and this will help them create supplier loyalty, securing key
services ahead of competitors (Hill & Alexander, 2006).
VRIN Analysis
This analysis helps to identify the strategic capabilities that
give SingPost its sustainable competitive advantage. Barney
(1991) suggested that competitive advantage is “when it is
implementing a value creating strategy not simultaneously being
implemented by any current or potential competitors and when
these other firms are unable to duplicate the benefits of this
strategy.” In VRIN Framework, it shows value, rare, imitable
and non- substitutable resources which have the potential to
create sustainable competitive advantage. Resources identified
are grouped according from the above section.
From the VRIN Analysis table, at individual level, there are
resources that are Temporary Competitive Advantage and
Competitive Parity, but by combining these resources, it will be
able to form sustainable competitive advantage for SingPost.
The Value Chain
SingPost processes over 2.8mil items every day (SingPost 2015)
and hence, it is essential for them to develop a superior value
system for their daily business operations. We will be using
Michael Porter’s Value Chain model on the analysis of
SingPost’s value system to determine if their market is growing
and see which activities are valuable to customers.
Primary Activities

Primary activities are activities that are directly involved with
the delivery of a product or services (Johnson G et.al 2014).
Inbound logistics
The inbound logistics refers to the transport, storage and
distributing of products or services. This include, product
handling, stock control and delivering of products and services.
(Johnson G et.al 2014)
SingPost has a state-of-the-art machine to process the mails,
sort it into its sizes, stamps and different addresses. That allows
them to cut down on human time spent as well as human errors
in mail sorting. The machine can sort mails into the delivery
sequence of each postman in Singapore, at 35,000 items per
hour, helping each postmen save an average of two hours, so
that mails can be delivered earlier (SingPost, 2015; Fig. 16).
(Fig. 16)
Operations
Operations system converts materials into final service (Johnson
G et.al, 2014). In this case, it is similar to the inbound process,
except the process of mail collection from the post-boxes.
Outbound logistics
Outbound logistics is the distribution of product to customers. It
does not appear to be in SingPost mail business, as postman
directly posts mails to recipient’s mailboxes.
Marketing and Sales
Marketing is whereby customers are in the know of a service
(Johnson G et.al, 2014). SingPost employs integrated marketing
communications to escalate its branding (Superbrands, 2015).
For their mail business, they appointed a popular local artiste
Edmund Chen to be its stamp ambassador. Such a move draws
the attention of customers, announcing that mail business is still
very much alive (AsiaOne, 2011).

Service
Service can maintain the value of a product. For SingPost
mailing business, it is when a mail has been delivered. If the
recipient is not collecting registered mail, SingPost will provide
mail retention, until the recipient collects it (SingPost, 2015)
Support Activities
Support activities are linked with primary activities so as to
improve the effectiveness of the primary activities (Johnson G
et.al, 2014).
Firm Infrastructure
The firm infrastructure is a framework of an organization which
they use daily to maintain operations for the customer. SingPost
has a strong infrastructure, which drives the company forward.
Under finances, SingPost has a positive cash flow of $130.6mil,
total assets of $2,197.8mil, revenue of $919.6mil as of 31
March 2015, according to their quarterly report (SingPost,
2015). SingPost board and Management follow closely with
Singapore Code of Corporate Governance 2012 under their legal
structure (SingPost, 2015). With a strong infrastructure, such as
having positive finances and legal structure, customers would
feel safe while engaging the services of SingPost.
Human Resource Management
SingPost knows how to retain, train and develop their
employees in order for the company to remain successful.
Employees (including executive directors) and non-executive
directors of SingPost are eligible to participate in The
Singapore Post Share Option Scheme which was adopted on 21
March 2003. These schemes are to recruit, retain and give
recognition to employees. Not only that, SingPost provides
training to upgrade the skills of the employees, so as to raise
the income as well as their productivity in the company

(SingPost, 2015). As such, by retaining and upgrading the skills
of the employees would create a value for the company, as
skills and productivity are produce by the employees.
Technology Development
With the use of technology, SingPost is able to develop digital
services where customers can manage and track shipments via
online and mobile applications. As such creating an ease of use
for the customer, SingPost has also made use of modern
technology and came out with a VPOST service, where
purchases can be shipped locally and internationally, creating
customers value globally as well (VPOST, 2015).
Procurement
SingPost has invested $45mil on Toshiba Asia’s integrated
sorting machines, and three-wheeler scooters for the employees.
The Toshiba Asia’s integrated sorting machines is a new system
acquire advanced technology, which enhanced the productivity
of the company which allow customers to receive letters at a
much faster rate than before (Toshiba Asia Pacific, 2015).
Conclusion
In conclusion, SingPost may have the same resources
(equipment, employees, know-how) as other competitors but
what differentiates SingPost is its unique capability to manage
its resources in an extremely productive way to promote
efficiency as mentioned in the examples above.
Stakeholders Analysis
According to Mendelow (1968) Stakeholders generally are
individuals/groups that is concerned and affected by the
organisations activities.. As they play a key part in the
organisation planning process, their requirement, power,
influence and ambition have to be taken into consideration.
Hence, with Mendelow (1968; Fig. 17) stakeholder’s matric, it

helps us to identify who plays a more important role than the
others.
(Fig. 17)
External Stakeholders
Customers
Customers are those that apply and utilise the services that
SingPost provides, such as the mail recipients and mail senders
(Business and consumer); they are the buyers, the main source
of profit for SingPost (Hill & Jones, 2013). Hence, looking at
the ‘Stakeholder Mapping: The power and interest matrix’,
customers power are relatively low as mentioned, SingPost is
their only option which means that they does not depend on
buyers.
The customer level of interest as a result of only having
SingPost to rely on, is high. Thus, they are being categorised in
the keep informed section. In this case, they do not make a
significant impact in SingPost strategies or business directions.
However, as they are the main source of profit, their needs must
not be neglected as well.
We can see from this aspect how SingPost are continuously
improving their services throughout the years, such as
introducing SpeedPost, its courier delivery service for overseas
and Local Urgent Mail. Furthermore, they transformed the post
office to one-stop centres for non-postal services, which even
includes payment of utility bills and other purchases like

international bank draft and traveller cheques.
They also heavily invest in technology to boost efficiency in
their services. Customers are able to track their packages with
the use of barcode sticker’s use on its mail item. In addition,
internet portal and vPOST was also introduced where postal-
related transactions, paying of bills and even shopping online
can be done by the customers. To make it as convenient as
possible, similar transactions can be performed through
SingPost’s Self-Services Automated Machines found at MRT
and post offices (SingPost, 2015). These are customer value
proposition strategy (Porter, 2008) adopted by Singpost.
Suppliers
Freight, basic mailing materials, electronic platforms and
softwares are some examples of SingPost suppliers. With
reference to Hendel (2015; Fig. 1), there are many suppliers
around in the market offering similar service. Therefore, they
do not have power over SingPost. Referring back to the matric,
suppliers have high level of interest but low in power, they are
categorised in the keep informed sector. As part of the
businesses, it is SingPost responsibility to keep their suppliers
in check and to obtain a healthy working relationship with them.
Partners and Investors
Above are the partners and investors of SingPost who acquire
shares of the organisation. As shareholders perspective, they are
interested in profit and it is the businesses responsibility to
focus on the welfare of shareholders (Friedman, 1970) certainly
they will have a high level of interest. They too are high in
power in the ‘power and interest matrix’, which makes them key
players of SingPost.
These key players provide funds for the organisation to expand
and venture. They also help in other aspect of the business such
as improving of services, facilities and many more. For example
in the most recent updates, Alibaba, who is the second largest
investor of SingPost apart from Singtel, has sign a joint venture

agreement with three promising initiative to expand ecommerce
logistics collaboration and to build a leading ecommerce
logistics platform servicing the constant increase of its business
across Asia Pacific and beyond (SingPost, 2015). This strategic
business development framework aids in the efficiency and
integration in ecommerce logistics and benefits the business as
a whole.
Each of them plays a critical role in SingPost and its planning
process. Hence, their requirement, power, influence and
ambition have to be taken into consideration with the
organisation framework (Mendelow, 1968), to satisfy them
(Friedman, 1970). This can be seen when SingPost and
management enhanced their engagement and communications
with the key players to make a conscious effort to proactively
update information and insights on market dynamics, challenges
and strategy with them through various channels. They also
have research firms to provide analysis reports and notes each
year. These are evidences showing the importance of these
stakeholders and how SingPost maintain a strong relationship
with them (SingPost, 2015).
Info-communications development authority of Singapore
(Government)
Last but not least, the iDA. They have high level of interest as
well as power of the organisation. They are the Chief
Information officer for Singapore and the government in-charge
of the overall planning. It includes project-managing, different
types of info-comm systems implementations and capabilities in
reach for the government. They abide to the procedures of the
government; oversee the standards and policies of Info-Tech,
and its security of essential infrastructure (iDA, 2007).
Usually, iDA are the ones that set corporate values and the dos
and don’ts of an organisation. Likewise as a key stakeholders
their requirement, power, influence and ambition have to be
taken into consideration with the organisation framework
(Mendelow, 1968).

Internal Stakeholders
Employees
General employees such as delivery staff, quality control
officers, postmen, frontline staff and the Union are also
stakeholders of SingPost. As employees, high level of interest
for the organisation is expected but not so much in terms of
power. As a result, they are categorised in the keep informed
category (Mendelow, 1968).
The organisation has to keep informed and update any changes
or progress to their employees. At the same time, they must
ensure safe working conditions, as keeping a healthy and strong
relationship with the employees is important as well for the
well-being of the organisation (Earley & Randel, 1997).
Board of Directors
Board of Directors are the ones appointed to act on behalf of the
shareholders, to lead daily operations and affairs of the
businesses as a whole. It includes the responsibilities for
corporate governance, the long term success of any organisation
(Friedman, 1962).
In this case, they are both high in interest and of power within
the organisation. They are the most critical key players in
SingPost who play very important roles in management
(Mendelow, 1968). They make valuable judgement and acts in
good faith for the organisation long term well-being. They
assist in the group’s overall strategy, reviews and oversee the
performances of the organisation in terms of objectives,
initiatives, risk manage and corporate governance practices
(Freeman, 1984). In addition, they must ensure the organisation
is financially independent with proper finance planning,
budgeting and critical funds, investments and divestment
proposal through constantly providing leadership and guidance.
These are the people that have the greatest power, influence and
ambition in the organisation. They deter the directions and
shape the organisation framework hence, evaluating and

analysing opportunities and deter which strategies would best
works for the organisations.
Conclusion
In conclusion, according to Mendelow (1968) power/interest
matrix, the key external stake holders are the iDA and the
shareholders of SingPost. The key internal ones are the Board of
Directors. Their power and interest definitely are impactful to
the organisations directions and the corporate governance
framework which is often the case in most organisations (Jensen
and Meckling 1976).
However, we should also take into considerations others
stakeholders such as employees and suppliers. Organisation like
SingPost should embrace all their stakeholders and not just the
shareholders (Freeman, 1984). The board being the main
instrument in the organisation as compared to the rest, have to
be firm and independent to stand on its own to maintain a
balance and avoid over powering of one over the other. The
worst-case scenario will be when the shareholders exceed the
internal members of the organisation. This may disrupt the
management team as issues such as corruptions may occur and it
will eventually leads to the downfall of the organisation.
Therefore, the board should have control over its organisation
and recognise the share proportions and distribution of power of
every individual.
Current Strategy
SingPost’s current strategy is to focus on using e-commerce to
excel in their mail delivery operations and be the region’s
leader. Having a strong technology support is essential for them
to achieve their goal, thus, they have been building up and
investing in it (SingPost, 2015).
SingPost has recently upgraded their technology to a fully
integrated automated system to enhance their mail sorting
processes (Mynewsdesk, 2015). Having 58 post offices country
wide allows their consumers to carry out their mailing process

more conveniently. They also provided modernised post offices
with self-service machines that allow consumers to purchase
stamps and post their mails anytime conveniently. In addition,
they provide mobile applications and online web-booking tools
to allow consumers to book, manage and track their shipments
through SMS or email. With the help of these technologies,
consumers can access to the mailing process anytime, anywhere.
Miles & Snow
According to the Miles and Snow Typology, strategies adopted
by firms at the business level will fall into one of these four
categories: reactor, prospector, defender, and analyser (Barney
& Griffin, 1992). SingPost adapted the defender strategy
according to the Typology. The defender strategy is one in
which firms focus on preserving their current markets and
maintaining a stable growth by serving their existing customers
to their maximum satisfaction (Miles & Snow, 2003)
To provide better service to the consumers, SingPost invested
on new sorting machines that improve letter sorting capacity by
17% and enhance their efficiency and accuracy. According to
Today (2014), due to having a decline in mail volume, SingPost
has decided to raise their postage rate so as to not compromise
their revenue. By improving customers satisfaction and sustain
a constant growth to ensure their current markets are retained,
SingPost is using a defender strategy.
SAFe
To assess strategies, a systematic criterion can be used to
evaluate against. Strategies can be evaluated against three
criteria: suitability, acceptability and feasibility (Johnson,
Whittington & Scholes 2011).
Suitability
Suitability is about evaluating the strategy which focuses on the
key opportunities and constraints an organisation faced
(Johnson, Whittington & Scholes 2011). In view of the PESTEL
factors, the macro-environmental conditions play a part in

influencing the suitability of strategies.
Key Opportunities & Constraints
One opportunity that SingPost can exploit with the benefit of a
politically stable country is to get more investors. As stated
above, SingPost is now working hand in hand with their
supplier, Alibaba Group Holding Limited, which possesses
14.51% of the equity stake. However, allowing another
organization to acquire their shares might lead to a constraint
for SingPost. Having some shares of the company means that
Alibaba also have some control over the decisions made by
SingPost. Therefore, Alibaba might support options in their own
interest rather than benefiting their partnership as a whole. This
will result in conflicts in future decision-makings.
With the present advanced technology market, SingPost can
definitely leverage from it as shown in the examples above.
This can also help SingPost in lowering their daily operational
cost and labour cost. On the other hand, due to the high degree
of reliance on technology for their daily operations, SingPost
might not be able to react to the technical problem in time if
their systems break down. In view of this, a huge disruption in
their daily operations might occur.
According to SingPost (2015), many of their vehicles are Euro-
Compliant, which emits lesser amount of carbon. SingPost also
foster an environment that encourages employees to conserve
and recycle. Other than that, SingPost works with the Singapore
Red Cross Society to collect recyclable items. All these
activities strengthen SingPost's CSR while helping them to save
costs as well as build brand image. Even though CSR allows
SingPost to boost their reputation, huge investment sums are
needed to aid their activities, which will affect their revenue.

Acceptability
Acceptability is the expected performance results of a
recommended strategy to its stakeholder’s expectation, which
includes three characteristic that is the ‘3Rs’, mainly the risk,
return and reactions of stakeholders (Johnson, Whittington &
Scholes 2011).
Risk
Risk is the calculated result of a strategy that is being expected
and the negative impact that affects the organisation
achievements (Ranong & Phuenngam, 2009). Hence in this case,
SingPost’s strategy as a defender preserves their current
markets and maintains a stable growth through excellent
services to their existing customers. From the above findings
this strategy is concluded to be safe and of low risk as the
environment that they are located in satisfy their stakeholders.
Besides, mailing industry is not used as widespread as before.
Therefore, demands are lesser and this allows SingPost to focus
on its own existing strategy where they can continue to prosper
and meet the needs of their stakeholders.
Return
Returns refer to the financial benefits stakeholders gained
through the organisations performances. Based on SingPost
(2015; Fig. 18) in comparisons of year 2013/14/15, it shows that
SingPost revenue is still increasing. The increase is not
significant, as the mailing industry is not widely used with
decreasing demands. The dividends per share are increasing
which shows that SingPost has met the requirement and their
stakeholders is likely to be satisfied.
Reaction
Reaction refers to how the stakeholders would react to the
specific strategy. Stakeholders such as shareholders, employees
and the others mentioned above will be pleased with the

strategy adopted by SingPost as our research and findings above
concluded that SingPost is doing enough in the current market
to satisfying their specific needs. Their results also justified
how well they have maintained the organisation today.
Feasibility
Feasibility is taking into consideration of whether a strategy
could be executed (Johnson, Whittington & Scholes, 2011). To
pursue its current strategy, SingPost have to consider the
feasibility of it. Therefore an analysis is required in order to
evaluate whether the firm has sufficient internal resources to
deliver the strategy. The firm has to examine its resources and
competencies in terms of financial, people, skills as well as
integrating resources.
Financial
In terms of financial, SingPost has a positive cash flow of
$130.6mil. According to Channel News Asia (2015), SingPost’s
mail profit grew 1.6% to S$125.1mil. Being financially healthy,
SingPost is capable of financing all of its post offices and
ensure that their daily operations run smoothly.
People & Skills
As for people and skills, SingPost is able to retain and educate
their staff so as to manage their organisation well. SingPost has
been re-employing retired employees to excess to their wealth
of expertise. Nevertheless, trainings are provided to upgrade the
skills of the staff to enhance the company’s efficiency and
productivity (SingPost, 2015). Staff with outstanding
performance will be rewarded with the Excellent Service Award
(EXSA). With such rewards and recognition, SingPost’s EXSA
Award winners have been increasing in the recent years
(SingPost, 2015). Having such rewards and systems in place not

only help to develop skilful and committed employees within
the organization, but also improves their service quality.
Integrating Resources
Last but not least, SingPost has the necessary resources to
integrate manpower, finance, and technology. They maximized
the potential of their employees by sending them for trainings.
Having good knowledge about the mailing industry, the service
quality and efficiency was thus enhanced (Superbrands, 2015).
Technology wise, SingPost has never taken this aspect lightly.
They are always up to date with the necessary technologies that
are needed to serve the business. Constant upgrades improved
their system to make them more efficient, effective and
convenient. In fact, it is proven that SingPost invests heavily on
them. Toshiba Asia’s integrated sorting machines and three-
wheeler scooter for the employees as mentioned are some of the
examples.
Conclusion
All in all, based on the above analysis, SingPost is in a
comfortable position in Singapore and they should keep their
current strategy. They are the dominant player locally and will
remain the same in the foreseeable future under the same macro-
economic climate. The company has gone through many phases
of industry changes over the years, yet they still remained
strong and their results are very telling.
However, with their current business position, SingPost can
afford to venture overseas and take risks in future if they want
to gain more global recognition, expanding outwards in the
market. As the mailing industry continues to decline due to

technological advancements, SingPost definitely needs to pre-
empt its competitors and go for a huge step-up in their business
model.
As Peter Drucker puts it aptly, “The best way to predict the
future is to create it.” SingPost could do worse than following
that line of thought.
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BUSM3200 Assignment 1 – Strategic Analysis of Singapore
Post LimitedPage 18
1) Propose and Justify
Solution

(The strategy) (30marks)
Diversification
Need to be Favorable to our strategy
Diamond Porter/ of undeveloped countries/ neighboring
countries/ASEAN easier to enter the market eg, Laos,
Cambodia, Myanmar (Singtel go into Myanmar)
Why you want to enter into that country?
What entry strategy? Joint Venture, look at political reasons.
Propose Strategy (Value, Sustainable Competitive Advantage,
Porter’s, Miles and Snow, TOWs, blue ocean, strategic clock-
mention w ref)
(SAFe, Rumelt’s criteria)
a. What is the aim of the proposed strategy, what value do you
deliver with it?
b. What do you about the areas that are lacking?
c. What are the pitfalls of your strategy and how we are going
to avoid it. -> limitations of the country eg, low spending
power, high capital (Setting up postbox, office building etc)
d. List all the models to show that we know, one or two lines
but then mention more in the model framework we going to use,
identify limitations. May use more than 1 model.
e. Justification

Remarks / for your reference :
My group has choosen Diversification as the strategy.
And the country we have choosen to joint venture is Philippines
.
As my groupmates felt that mailing business there is growing
well, hasn’t been declining, but they lacked of resources for
technology such as mail sorting , they are currently using
manual process, which they are highly dependent on power.
Mailing companies in Philippines: 8 .
Internet users per 100: 39.7/100
FDI in Philippines availability : yes , under other services
List of mailing companies:
http://www.trackitonline.ru/?service=postal
&ctrPH,+fedex&DHL
Phlpost improvements:
http://postandparcel.info/63633/in-depth/the-transformation-of-
phlpost/
Phlpost Manual Processing:
http://www.mailatimes.net/post-office-struggling-to-survive-
new-technology/8129/
Mail industry is still growing in Philippines:

Http://www.asianewsnet.net/snail-mail%E2%80%99-still-big-
business-in-the-phillippine-74157.html
IMPORTANT
Advise for Diversification Strategy
If you’re proposing new products/services and/or new markets
(new segments or geographical territories), it is EXTREMELY
IMPORTANT to present your case effectively so that the
Examiner does not think that you have unknowingly engaged in
corporate level strategy.
Going into new products/services or new markets is generally
considered as a corporate level strategy by textbook authors (at
least those that I've come across). See JWS, Ch 7, Ansoff's
matrix for example. However, if argued properly, CLOSELY
RELATED diversification can be a business level strategy. If
this is reasoned properly, it will earn you praise (and high
marks) from the Examiner. If it is done badly it ,will lead the
Examiner to think that you do not understand the difference
between corporate and business level strategy. These are the
points you must include in your argument:
As in all suggested strategy presentation, start by describing the
mechanics or features of your strategy. Basically, what does
your strategy entails? In your case, the key feature, among
others that you have in mind, is new product/services or new
markets or both (see Ansoff's matrix). In fact you should

reference Ansoff's matrix. Per Ansoff's matrix, describe your
strategy as related diversification. However, it is worthwhile
mentioning that it has very close relationship with current
products or markets.
Next, you must follow up immediately with statements
acknowledging that such a strategy is generally regarded by
authors as corporate level strategy (provide reference, any good
text will do. Maybe 2). The reason that writers generally do so
is because it is thought that a diversification would require a
new and different set of strategic capabilities from what the
firm currently has. And it also generally accepted that two
different sets of strategic capabilities should reside in two
separate businesses (or Strategic Business Units; SBUs). This is
further supported by Porter who argue against mixing broad
market and narrow market strategies within a SBU because
different sets of strategic capabilities are required (e.g.,
Singapore Airlines and Scoot). Trying to execute two disparate
or divergent sets of capabilities within one organisation can
lead to conflicts and inefficiency. Hence, a diversification
strategy would entail the need to set up a new business unit.
Setting up a new business unit is corporate level strategy. This
explanation will demonstrate that you know what is corporate
level strategy.
Then you explain that however, in your case, your related
diversification is a business level strategy based on the

following argument. Firstly, the new product/service or market
is highly related to your existing offering. The relatedness of
this diversification is close enough for the organisation to be
able to provide this new product/service or serve the new
market with existing strategic capabilities, or at most with an
upgrade of its existing strategic capabilities (you have to decide
which one fits your case). Then go on and explain what are your
strategic capabilities, and how in their present form or enhanced
state, they can continue to be used for existing as well as new
products/services and/or new markets. Example, you can
continue with the use of existing post offices, albeit with some
additional staff. You need to be thorough on this, providing as
much details as possible. Most importantly, it does not require
the organisation to acquire unrelated strategic capabilities.
Having a
distinctive set of strategic capabilities is one of the definition of
an SBU, (see JWS ch 6; you should reference this). And since,
you have one set of capabilities that can handle different
products and/or markets, the latter can be kept under a single
business. So, the new product/service and/or market can be
provided for by the existing business, which is the Mail
Business. No new businesses need to be set up. Therefore, this
new product/service and/or new market strategy is a business
level strategy

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