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͞Strategic Challenges
In A Turbulent Environment͟

Syndicate A4 - ONDEMANDHE:
Dita Maulana ʹ MohammadTaufan
Silvi Oktavia Z. - Friska Indriani ʹ
Achmad Setiawan - Dian Gita Utami - Henry Gunawan


    

  
  


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

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

SingTel operated difficult business environment and faced increasing


competition both locally and abroad
abroad..

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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 Telecom͛s overseas
investments.

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Strengths (S) eakness ()

-Having Singapore Telecom Mobile, SingNet, and -SingTel͛s growth rate in recent years
Internal Factors Singapore post as their major partner in Asia has become more relatively unstable.
Mobile Electronic Services. -Fear that public sympathy is not with
-New services such as maintenance of cable chips Singapore Telecom
and ownership of Singapore Telecom͛s own
satellite.
-SingTel group uniquely positioned to offer
services throughout the e-commerce value chain
-As the first ranked of the quality of the
Singapore͛s telcos infrastructure
External Factors

Opportunities (O) SO Strategies O Strategies

-Singapore has highest GDP per capita in Asia. - SingTel can try to do expansion to other - Improve the CRM (Customer
-Singapore is the most advance information countries outside Asia. Relationship Management).
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

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Strengths (S) eakness ()

-Having Singapore Telecom Mobile, SingNet, and -SingTel͛s growth rate in recent years
Internal Factors Singapore post as their major partner in Asia has become more relatively unstable.
Mobile Electronic Services. -Fear that public sympathy is not with
-New services such as maintenance of cable chips Singapore Telecom
and ownership of Singapore Telecom͛s own
satellite.
-SingTel group uniquely positioned to offer
services throughout the e-commerce value chain
-As the first ranked of the quality of the
Singapore͛s telcos infrastructure
External Factors

Threats ST Strategies T Strategies

-Customers demands and expectations -SingTel can do the marketing research to find -Keep up with the rapid changing of
-Rapid growing of technological change out about the customer͛s taste. technology by doing many innovations.
-New services such as Internet telephony or Virtual -Carried out a promotion campaign.
Private Networks
-The Asian economic crisis
-StarHub and Mobile1 as new competitor
-Faced competition from foreign callback services.
-Government create competition

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Singapore Telecom covers telephone line, e-commerce, Internet, and mobile


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

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.

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Singtel has initiated foreign investment in several countries, the


strategic alliances in order to gain market entry and acquire
VEHICLE technological skills, and to undertake diversification into IT and
value-added services in order to sustain its growth and
profitability.

COMPANY COUNTRY SINGTEL͛S 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%

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Singtel increases its focus on its customers. Specific customers


units have been set up to manage the diverse telecommunications
DIFFEREN
needs of its different customer segments including corporate
TIATOR 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.

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SingTel͛s strategy has been a focus on the achievement of short-and


Staging
medium-term profitability, pursuit of globally competitive service and
& efficiency standards, high investment in proven technologies and the
Pacing establishment of a world class telcom infrastructure.

SingTel needs to continue to deliver in


Economic terms of service quality and financial
returns. For that SingTel apply the same
Locic 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.

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%  

STRATEGIC POSITIONING

Strategy Strategic Positioning


Low Cost Differentiation
- Take advantage from business opportunity that comes with the 3 5
convergence of telecommunications, IT, and media.
- Seek the new business opportunity as they emerge and synergize 2 5
them with SingTel existing services and operations.
- SingTel will pursue global and regional expansion through investments 2 5
overseas.
- Taking advantage from SingTel existing assets, such as their billing 5 2
systems, telecom network, and real estate, to generate new revenue
through services suach as facility management and billing services.
Total Score 12 17

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SingTel
 Having broad service: fixed-
fixed-line telecom, ee--commerce,
Core Internet and Mobile Service
Competencies  Having competence resources
 Ability in advance technology and innovative service

SingTel
Distinctive
Ability to combine low cost and technology to create
Competencies
quality product

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- OndeMandhe -