General Conclusion Of The Current State Of Ntuc Fairprice Company Ltd In Essay.

Discuss about the General Conclusion Of The Current State Of Ntuc Fairprice Company Ltd.

Politically, it faces relatively low levels of political risks on its investments particularly for its existing outlets due to support from the government and the retail sector.  Politics have a significant effect on business operations (Geoffrey, 2006).  Economically, the Company is provided with a friendly business environment by the strong economy of Singapore, and this promotes its perpetual expansion.  Socially, it faces challenges in the sale of its frozen or refined food products attributed to the rise in awareness of health issues related to such foods.Technologically, it is well placed to expand its operations due to the modern technology available in the country.  Technology promotes business advancement (Sebastian & Klaus, 2012).  Environmentally, the Company is fairly affected by fluctuations in business due to natural disasters.  Legally, the Company reaps immense profits due to the low taxation levied by the government, and this encourages its expansion.  Porter`s five forces for the company are highlighted as follows; the company faces high competition from other supermarkets like Giant, it has dominated the country`s supermarket sector for years, and hence new entrant is average, the company faces high threats posed by substitution products since similar products are provided by its competitors, it enjoys low prices for the supply of its products and it faces high competition such that it has to be careful in pricing.

Conclusion

The company`s remarkable performance is immensely fuelled by favourable political support, goodwill and policies, the country`s good economic environment, technology advancement and low tax rates.  However, it faces challenges courtesy of the increase in awareness of health-related issues linked to unhealthy food products and environmental hazards like earthquakes in Japan.  NUTC Fairprice is thriving well despite competitive rivalry being high, mild new entrant, increase of substitute product, minimum supplier bargaining power and high customer bargaining power.

References

Geoffrey, E. (2006). Uneasy Partnership: The Politics of Business and Government in Canada. University of Toronto Press.

Sebastian, M., & Klaus, D. (2012). Understanding MPEG4; Technology and Business Insights. Taylor & Francis.