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Political Factors

Discuss about the PESTLE Analysis of SingTel.

The company considered in this report is Singapore Telecommunications, an organisation based in Singapore. Singapore Telecommunications also known as SingTel is one of the leading communication industry which offers services of wide ranges. The wide range of services includes data, internet services and mobile. The company also includes the technology of info-communications and pay-television along with the said services. SingTel is considered to be Singapore’s one of the largest organisation that is public-listed through capitalisation of market.

The organisation is having the branches in India, Pakistan, Indonesia, Thailand, Australia and Philippines. They are other than been recorded on the Australian Securities Exchange by help of obtainment of Optus, the second most noticeable communication supplier in Australia since September 2001. For fulfilling the necessities for multinational affiliations, SingTel runs approach of 36 working environments in 19 different countries and zones all through Asia Pacific, Europe and besides the USA. The SingTel Group is serving around 383 million customers in 25 different countries (Chua, 2011).

In Singapore SingTel is working for the last 130 years and they also plays significant role in the development of the country. In the current era the company is having vital part in computerizing the media in ICT market of the country. Though, the government has imposed an end of monopoly market but the organisation is still retaining 3.2 million clients and the share of the markets is as high as 46.4% (“Market Analysis for the SingTel Group,” 2015). In 2007 SingTel launched Mio TV and take an entrance in the world of entertainment providing in home. In 2016 fiscal year organisation earned a profit of net value around S$ 3.87 billion (Annual report,” 2016).

PESTLE analysis is considered to be one of the best tool which are been utilised by the market analysers for analysing and monitoring the macro factors of environment which influences as well as having impact on the organisation (“Marketing Theories – PESTLE Analysis,” n.d.).

Political Factors: The holding of the Singapore government beyond the organisation has a positive impact on the organisation. Temasek Holdings have owned the majority portion of the organisation. Temasek Holdings is one of the investment wings of the government of Singapore. SingTel with the help of market capitalisation in the exchange of Singapore has a total portfolio value of 223 billion Singapore dollars. Under the laws and constitution of Singapore, President as well as Minister of Finance of Singapore and shareholder of Temasek are not been involved in the decisions of business, investment and divestment (Nga, 2017). But as the company get the backing of the Singapore government the investors have confidence for investing which maximizes the company’s creditability.

Economic Factors

Economic Factors: Globalisation affected the reputation of the company. When there was an economic turndown on 2008 the company offered the rebates services to the customers. The customer paid rebated bills as well as the post-paid plan was without any contract. The plans of SuperSim were the first plan of post-paid mobile without any contract. This adaptability of the organisations enhanced the customer’s confidence (“Market Analysis for the SingTel Group,” 2015).

In recent times the government of Singapore have concentrated on the heavy investment on the economy diversification. Therefore every economical sector will attain a significant growth and therefore SingTel has the opportunity in strengthening the business. The company should take the advantages of spending habits of customers and alteration in income.

Social Factors: SingTel develops social program. The philanthropy program includes SingTel Touching Lives Fund which raises the fund for helping the children as well as youth who are in the requirement of special needs. Project Silverline of SingTel helps in improving the lives quality of the elderly people who are alone. The organisation also helps the kids. The organisation partnered with Optus for the Helpline of kids since 1999. It helps in creating the interesting strategies for assisting kids and then connects them through online counselling services in the real time.

Technology Factors: SingTel has strengthened the services of digital marketing. The services like Hooq and Data Spark has made the company to gain the technological process. This helps the company in providing the maximum synergy to the customers and offers bundle of services to the customer. It offers solutions for multiple industries. Technology changed and developed rapidly and constantly nowadays. New relationship, for instance, Internet Telephone and the extension of media transmission customers are the illustrations behind relationship to put becoming new types of progress in things and affiliations (Nga, 2017). Starting at now, SingTel gives telephone lines, online business, web, and versatile relationship with key change in electronic business and Internet-based activities with customer packs.

Along these lines, SingTel has seen that the creative endeavours are a critical bit of SingTel's methodology for whole course of action progress. On 21 September 2010, Singapore Telecommunications Limited point by point it has set up SingTel (Innov8), a corporate twist relationship to place assets into creative developments and answers for make future progress engines for the Group. Innov8, a totally had teammate of SingTel, will have a covered resource size of S$200 million.

Social Factors

Legal factors: The competitors of SingTel are accounting legal action after Telco in Singapore apologized for conducting campaign through the agency of social media. The company had roped for running campaign targeting the youth people but the local blogger have published internal brief instructions against the organisation and the organisation faced a great danger at that time.

Environmental Factor: SingTel manages as well as minimizes the environmental impact by conservation of resources as well as preventing the pollution. The Environmental Management System helps in providing the guidance process of the business as well as operation for ensuring that the policies of environment are been met. The organisation is committed for providing the safe health and work environment for the employees and also managing the footprint of environment.

Porter Five Forces Analysis is considered to be powerful tool to understand the location of power in an environment of business. This is helpful as well as useful as it helps in understanding the strength of the competitive position of the business as well as the strength of the position which is been considered at the time of moving the business (“Porter’s Five Forces,” 2015).

Rivalry Intensity (High)

The competition is stiff because the companies of telecommunication are supplying the same products which are been considered as undifferentiated. Customers are having the power of high bargaining which yields in wars of prices and this is happening from the past.

The emergence and introduction of optic fibre for the services of internet showed that there is a trend in increasing the number of service providers. In recent times many service providers has introduced the utilisation of fibre products. As the industry of telecommunication was liberalized in the past decade therefore the introduction of innovative optical fibre will attract maximum customers.

Risk related to New Competitor (Low)

There are several obstacles for entering because of this industries nature. These obstacles comprise infrastructure related expenses like high telecom signal towers for mobile phone users as well as data houses for the purpose of managing cloud storing. Moreover, businesses that belong from this industry have a possibility to maximizing economies for extra reduced expenses and keeping out new competitors.

As an example, for the purpose of installing infrastructure, initially mobile users had to pay elevated usage cost. Then the minimal charges to add each user was reduced that bought down unit charges. As it will be tough for the newcomers to be consistent within the telecommunication industry, there are less chances for locating any such new competitor.

Technology Factors

Suppliers Authority over the Industry (Moderate)

In Singapore, always there is a moderate control stability amongst the telecommunication firms and suppliers. It is not possible for suppliers to contest with present users in a direct way for the high estimated networks located geographically and the struggle for making long-term agreements are generally challenging for this telecommunication industry.

A deficiency of suppliers is noticed because of their precise capability of providing multifaceted, dependable mobile networks. Assumed the stability of authority amongst telecommunications firms and suppliers, suppliers’ influence is generally reasonable.

Buyers’ Influence (High)

In the rich country of Singapore, customers retain extraordinary control on bargaining, as they have the extreme authority for changing companies. Furthermore, often a great level of transparency can also be seen that lets price cautious customers for having a decent valuation of the available existing choices for taking a well-versed choice.

Therefore, buyers affect a company through their ability to drive prices down, bargain for higher quality and more services and play competitors against each other.

Risk related to Substitute Products (High)

The menace related to substitute products is very high because of less number of changing expenses as well as less number of variation amongst mobile network service provider firms.  Customers are very cautious about mobile charges and often incline to change to a provider that costs less. At present, for the purpose of making overseas call, clients have the option for selecting Internet telephony on top of fixed-line service.

The need of fixed-line is declining by means of a convenient process. Intimidations as alternative of fixed-line telecommunication is great and it is substituted by Voice over Internet Protocol (VOIP) as well mobile phone apps that eventually helps in decreasing communication along with expenses related to the setup. (Chang, Tham, Cheng & Chung 2016)

For achieving enhanced result, SingTel’s brand appearance as well as its amenities have to be highly user-centric, better governed, the company needs to take social responsibilities and need to look for innovation all the time.

Accomplishments of SingTel comes from user centricity. It has to sustain decent communicative rapport with its consumers by the means of innovative and thrilling facilities as these are crucial for dodging the rivalry. SingTel, through understanding its customers’ requirements and fathoming to them, need to boost its viability through providing value added as well as worth service. Consecutively, it will grab users’ attention that eventually will help in establishing a vast client-base. Therefore, SingTel need to continue its search to formulate new and pioneering means for doing trade and withstand desire to show a change.

Legal Factors

Decent commercial control along with transparency are crucial for confirming durable feat and guarding curiosities’ of the share-holders. Additionally, it also need to align with the commercial goals steadily for strengthening leading the industry and its status within the telecommunication business industry.

For the purpose of the company’s viable growth,  SingTel's have to integrate top-notch HR policies for talent acquirement, retaining, teaching, growth and employee along with nurturing and grooming imminent leaders. Variation in workers is a vital part for the firm to attain accomplishment as each staff brings their exclusive expertise along with working knowledge that facilitates company growth. Hence, SingTel need to make every effort for attracting and hiring the best talents available round the globe.

Along with the assurance of offering a vigorous as well as harmless work atmosphere to its staffs, SingTel have to be devoted in decreasing environmental track by the means of intensive business performs. It need to talk about and be attentive in protecting the environment, conserve natural resources, reducing chemical waste as well as operational impacts. Looking over such in-house practices will eventually let SingTel monitoring, assessing as well as mitigating the importance of any hostile business effect on the atmosphere, humanity, its consumers, and lastly its workers.

Additionally, SingTel need to address the social fears which are dire to the welfare as well as viable community growth where it functions.

Presently, the company funds a vast kind of agendas those are mainly focused on two policies:

  1. SingTel Touching Lives Fund (STLF) – It is the corporate philanthropy agenda within the Singapore for supporting community related plans, needy teen-agers as well as youngsters.
  2. SingTel backs community growth for preventing catastrophe aid and decrease disease within the geographical area where SingTel maintains high-potential influence.

These are considered as good initiatives and these to be sustained for noble work that covers more areas in future for contributing further to the humanity and society.

It has become a great challenge for SingTel to be able to avoid the competition and continue as a leading service provider in the present volatile industry of telecommunications. Ergo, the innovation part is indeed a key for resisting within the market.

For exploring and identifying ways in which innovative facilities like Internet Telephony can further be exploited and incorporated within its prevailing telecommunications facilities, SingTel must team up with firms like government agencies, top innovators, equity providers as well as Research & Development (R&D) groups within its service areas.

Transformation should be the plan to succeed and stay ahead of the competition, SingTel must adopt cost efficiency which instigates high performance and growth. (Roy, Halder, Roy, Mehedi & Shamim 2013)


SingTel remains maintaining a resilient stance being the leader of telecommunication industry along with a robust consumer-base and attainment as it is able to frame and apply decent approach. However, still there is considerable space of advancement.

Even now, Voice over Internet Protocol (VOIP) is an intimidation as there is no plan framed to fight it.

Through refining its operational structure and constant scanning of in-house financial subtleties, there is a high possibility of production decline, delivery, and service charges. It can be beneficial for both customers and the business. Therefore, SingTel can attain the position of being the lowermost cost telecommunication services provider within the region.

R&D is a venture to secure the future of the company. Singapore Telecommunications Limited must carry on investing in SingTel Innov8 for identifying innovative know-hows and resolutions for further growth. (Harpur, 2016

Reference List

Annual report. (2016). Transforming with you [webpage]. Retrieved from

Chang, R., Tham, XS., Cheng, KF., & Chung, C. (2016). NUSINVEST[webpage]. Retrieved from

Chua, A. (2011). E-resources[webpage]. Retrieved from

Harpur, P. (2016) Budde[webpage]. Retrieved from

Market Analysis. (2015).Market analysis for The SingTel Group[webpage]. Retrieved from

Marketing Theories. (n.d). Marketing Theories – PESTLE Analysis[webpage]. Retrieved from

Nga, L. (2017). Fool[webpage]. Retrieved from

Porter’s Five Forces. (2015). Porter’s Five Forces [webpage]. Retrieved from

Roy, A, Halder, P, Roy, S, Mehdi, MA, Shamim, MSH. (2013). Projonmerpokaaiub[webpage] Retrieved from

SingTel group sets up.(2010)SingTel Group sets up S$200 million corporate venture capital fun to drive innovation [webpage]. Retrieved from

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