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2. Market Situation Analysis
2.1 Macro – Environment Analysis
There are many factors in the macro-environment that will affect the decisions of SingTel management. Factors contributing to it are Political / legal; Economic, Social / Culture, Technological, Environmental / Natural and Demographics.
Political / Legal
Singtel was originally in a monopoly market until the government deregulating the telecommunications industry in 2000. SingTel entered a phase driven by fast-changing technology, which is stimulated by the demands of increasingly sophisticated end-users. To meet these demands, there has been a worldwide trend towards privatization, liberalization and deregulation in the telecommunications industry. This trend has created many opportunities, as well as challenges for SingTel.
Liberalization, deregulation and competition thus offer a viable approach to ensuring the provision of better quality of services at highly competitive prices. SingTel also stimulate more innovative services aimed at satisfying the needs of different market segments with custom-made solutions. In Singapore, the liberalization policy is aimed at increasing consumer choice and stimulating greater efficiencies in the use of scarce resources.
In 2009, the Info-communications Development Authority of Singapore (IDA) has made a decision with regard to SingTel’s exemption request for the Business and Government Customer Segment and Individual Markets. This helps SingTel to seek exemption from the application of Dominant Licensee regulation to its provision of telecommunication services in six individual markets, all retail telecommunication services to customers in the business and government customer segment with an annual spend on telecommunication services of at least S$250,000. (IDA Singapore, 2009)
Singapore has one of the most advanced Information and communication technology (ICT) networks in the world with very high levels of access. This has been possible due to the small size of the country as well as rising levels in income and government commitment to telecommunications excellence.

Economics
Economic situation is one of factor affecting to SingTel business directly. Globalization has jumped national boundaries, opened and increased trade and business has also an opportunity for the company. Thus, the using of telecommunications device and services has increased globally and the trend is expected to continue. This provided SingTel the opportunity to invest oversea, to enlarge the market and maintain profitability.
Recently, the Singapore government has invested heavily in diversifying the economy. The business sector will create good environment to support and motivate the workforce as well as establishing the legal and financial business framework. All the economic sectors will continuously grow such as tourism industry, financial service, consultant service and retail. The growth in various economic factors presents the opportunity for SingTel to increase business locally. Furthermore, the telecommunication services are closely linked to economic activities in Singapore and region. So, SingTel need to have a good preparation to take the full advantage of effects such as the change of income and consumer spending habit.
Social / Culture
Singapore Culture is unique with four major ethnic groups: Chinese, Malays, Indians and Eurasians. They are still strongly believed in their traditional value although the younger generations has started to adapt with the western culture. Especially, there is a phase in the mindset of Singaporean that “kiasu” means “afraid of losing out to other”. With this mindset, many young Singaporean has worked hard to expect high income and pursue the new and modern technology. They are always changing in their lifestyle, purchase behavior and the demand the high standard of quality and services. These present an opportunity for SingTel increase their revenue by offering the new and customized the product and services
A change is taking place in the mobile industry. Customers are increasingly engaged with their smart phones and Internet devices to perform functions for work and leisure anywhere, anytime. Richer applications and services will be delivered over mobile networks. In fact, for many regional and rural customers in the developing markets, they will be accessing the Internet for the first time through their mobile phones. SingTel has seen this fact and moved to meet customer demand.
Technology
Technology has changed and developed rapidly and continuously nowadays. New services such as Internet Telephone and the increasing of telecommunication users are the reasons for company to invest developing new technologies in products and services. In the current business, SingTel covers telephone line, e-commerce, Internet and mobile services. But SingTel has indentified e-commerce and Internet-based activities, which there are significant growth with customer segments. So, the technological investments are an integral part of SingTel’s strategy for long-term growth. Also, the high investment in proven technology was the critical factors made SingTel succeed in the past.
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Environmental
Due to the change in climate over the years, Singtel has been focusing on a greener network aiming to improve the energy consumption in Singapore. Various renewable energy sources have been ungraded with sustainable renewable energy sources installed in stations as illustrate in Figure 1 below.

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Figure 1 – Sustainable Energy Sources

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