Swot Analysis Of Singtl

Analysis of Singapore Telecommunications Limited (SingTel) using the SWOT framework, (Nanayakkara, 2014).

1. Strengths
Strong market position
SingTel is the market leader in the mobile and broadband markets in Singapore. In the broadband market its wholly owned subsidiary SingNet has 58% market share and in the mobile market SingTel has 47% market share and 3.98 million customers. SingNet has been able to utilise this large following using services such as Mio-TV and content Portal In-Sing.com to generate revenue. In Australia The wholly owned subsidiary of SingTel, Optus has a market share of 30%. Even though it is not the market leader Optus has a reach of 9.43 million users. The strong market position has enabled SingTel Group to retain

As a result, SingTel had to dispose almost all of its significant investments in Europe including Belgacom. More recently SingTel acquired 45% of Citycell, a Bangladesh based operator and plans to dispose of it even at a loss considering its poor performance. The group also disposed of a minority stake in a Taiwan based mobile operator in 2012. The poor consideration in acquisitions has been a consistent theme for the company. The company has invested in many other start-ups that have little or no-impact on its core business

Threats
Regulatory changes impact on operations
When the government decided to introduce competition through deregulation, there was a threat of SingTel losing its market share to M1 and StarHub when they entered the industry. However, this was not the end of competition. More recently Optus, the fully owned subsidiary of SingTel has reduced revenue due to lower mandated call termination charges.

Competitive Pressure leading to pricing crunch
The HHI (Herfindahl-Hirschman Index) for Telecommunication has generally been low due to increased competition. With de-regulation of markets the threat of new entrants has also increased (Singapore). This competitive pressure is felt already by Optus which saw price drops under fierce competition especially from Telstra (Australia).

Economic Stability
The economic stability as well as competitiveness of many major economies was adversely affected by the Asian economic crisis. In addition, as compared to local domestic economy, the developing Asian economies had to struggle with the fierce hike of interest rates during the first half of the 2000’s. The region has generally seen low interest rates in the years that followed the Asian economic crisis as evident by the SIBOR (Singapore Inter-Bank Offered Rate) which is the benchmark for interest rates in the region. There is a risk of inflated prices causing a bubble which could devastate the region’s economies. This is a major concern for SingTel as many of its associate and