DEVELOPING COMPETITIVE ADVANTAGES

Arena SingTels consumer business has a broad target market of customers ranging from individuals, to families to even businesses. They offer a wide range of products and services so that there are a variety of choices for its consumers. It is also the market leader of the telecommunication industry, possessing a market share of 45.9%. Therefore, many people would have the perception that SingTel would have higher quality and status than its competitors. As seen in figure 1.1, the perceptual map depicts the current market perception of each telecommunication company. High perceived quality and status

Wide range of products/services offered

Narrow range of products/services offered

Low perceived quality and status Fig 1.1 SingTel should focus on increasing high perceived quality and status of their services and products. This could be done by: Reiterating its core value to current customers. Positioning themselves as a telecommunication company that provides seamless info communication services. Reinforce consumers awareness of the wide range of products and services that SingTel offers while maintaining a competitive pricing policy. Portray an image that SingTel is the most efficient and effective service provider with the ability to provide value for its consumers.

Vehicle
In order for SingTel to retain its current market share, it needs to make continuous improvements on speed and connectivity of its 3G and 4G network by demonstrating to the market its ability and expertise in providing a seamless info communication experience.

Therefore, based on the Porters Generic Strategies as shown in figure 1.2, SingTel should strive to achieve cost focus by providing better services than rivals and performing value chain activities efficiently and cost effectively.

SingTel should strive to be here!

Figure 1.2 Components of the value chain that needs to be improve to achieve cost focus: Technology Development Investments should be into research and development to create faster 3G and 4G network for the consumers. Cost of printing monthly bills to consumers can be saved if investments were made to research and develop electronic bills. Mobile applications can be improved to allow consumers to pay their bills on-thego and purchase products by using their mobile phones. Service Enhance quality control by running tests and enhancing outdoor network service coverage in order to reduce frequency and severity of downtime. Troubleshooting for mioTV should be available on SingTels website so as to save cost and time. Human Resource Management Using technology to provide information and assistance to consumers, SingTel will be able to reduce head count for sales personnel and/or helpdesk personnel. These cost savings could go into creating another competitive advantage or investing on technology that can create value for the consumers.

Differentiator The key messages in the efforts to reinforce the market share must capitalise on improving the value chain and intended focused low cost strategy. SingTel should move towards retaining its current market share in Singapore and if possible, to be able to increase its market share by providing product reliability and service excellence. Based on Hambrick and Fredricksons model of The Five Major Elements of Strategy, the elements of differentiator are: image, customization, price and product reliability. SingTel should differentiate their products and services according to each element of differentiator.

Elements Differentiator Image

of Tasks to Differentiate Continue to provide consumers with the perception that SingTel is the leading company in telecommunication industry. Continue to provide mobile consumers with price plans tailored for each market segment to suit their needs. Educate consumers on purchasing the appropriate service and products. Always communicate the value of purchasing SingTels products and services at every point of contact. To achieve focused low cost, SingTel must strive for low cost competitive strategy. As low costs enables companies to sell products at higher price. Therefore, with improvements made in the value chain supporting low cost, SingTel can price their products and services slightly higher than its competitors. SingTel has to ensure that excellent 3G and 4G network is delivered so as to earn confidence and trust from consumers. SingTel also has to deliver excellent broadband services for mio TV and/or mio Home consumers without fail. With the new optic fibre technology and the increasing demand for this service, SingTel has to begin monitoring the progress, feedbacks and issues of this technology. This will enable SingTel to make immediate recovery or corrective actions to ensure reliability of services provided by optic fibre.

Customisation

Price

Product Reliability

Staging & Economic Logic SingTel will strive to achieve focused low cost by reducing cost and investing on activities that creates value. The table below shows the budget plan and timeline for each activity that will be carried out by SingTel from year 2013 to year 2022. 2013 Activity 1 Activity 2 Activity 3 Activity 5 Activity 4 Activity 6 Activity 7 Activity 8 2018 Activity 1 Activity 2 Activity 11 Activity 12 Activity 13 Activity 14 Activity 15 2019 2020 2021 2022 2014 2015 2016 2017 Budget (SGD) 10 Million 5 Million 90,000 1 Million 100,000 80,000 Budget (SGD) 10 Million 5 Million 10,000 NIL NIL NIL 1.5 Million

Activity 1 From 2013 to 2022, SingTel will constantly run tests to enhance quality control and improve outdoor network services. Service standards and requirements set by the authorities will be met and customers will have a better perception of SingTels services. Activity 2 From 2013 to 2022, R&D will make consistent improvements on 3G and 4G services to increase speed and connectivity. This is to ensure that value is being delivered to each and every customer throughout the next 10 years. Activity 3 In 2014, R&D will also focus on improving mobile application. Modifications will be made to allow customers to pay bills on-the-go, purchase products using the mobile application and update on the latest mobile technology. Activity 4 In 2015, SingTel will launch the modified and improved mobile application. Sales personnel will educate customers on the value of downloading and using the mobile application. An introduction video of the mobile application will also be loaded onto SingTels Facebook page for mass dissemination. Activity 5 From 2014 to 2017, SingTel will make consistent effort to monitor the issues relating to optic fibre. As this is a new technology, SingTel will strive to rectify every problem related to optic fibre and maintain quality standard for its optic fibre service. Activity 6 In 2015, SingTel will make research on developing electronic bills. Costs from printing over 3 million pieces of bills every month will be saved. Along with the increase of jet setters and environmental conscious customers, electronic bills will be preferred over paper bills. Activity 7 In 2016, SingTel will launch the electronic bills. Customers can choose to opt-out from receiving electronic bills instead of paper bills.

Activity 8 In 2017, SingTel will create a troubleshooting webpage for mio TV on SingTels website. Customers will be able to save time on calling the helpdesk for problems that can be solved by easily. Helpdesk can also have more time to focus on more important issues. Activity 11 In 2018, SingTel will have to begin reviewing customers feedback. SingTel will expect good reviews from customers due to heavy focus on improving service quality for the past 5 years. Activity 12 In 2019, SingTel will begin to increase price plans. As reflected from good feedbacks and reviews, customers will begin to rely heavily on SingTels seamless info communication services. SingTel will seize this opportunity by increasing prices of products and services. Activity 13 In 2020, SingTel will continue to monitor competitors response to SingTels increase in price plans. Activity 14 From 2021 to 2022, SingTel will gradually reduce headcount for helpdesk/sales personnel. As some services and troubleshooting will be provided through mobile applications and SingTels website, headcount for help desk/sales personnel can be reduced gradually. Activity l5 In the year 2022, cost savings generated from all activities will enable SingTel to create services and products of new value that provides a competitive advantage.