Useful site is about custom coursework writing help

Dissertation writing services singapore mrt

Jun 6, 2018

Strategy Review Of Smrt Corporation Ltd Economics Essay

Published: 23rd March, 2015

Disclaimer: This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

SMRT established in 1987 provides light rail, subway, bus and taxi services to about 1.3 million commuters a day. Mass rapid transit (MRT) unit is the major revenue contributor for SMRT. It's MRT unit operates on 90 kilometre distance which constitutes 50 stations. MRT unit also rents some of the space in the MRT stations for commercial activities and also earns money through ads placed on taxis, buses and MRT's (Hoover's Inc., 2012a). SMRT provides engineering services and has projects outside Singapore. SMRT's only competitor is ComfortDelGro Corporation Limited (Hoover's Inc., 2012c).

Table 1: SMRT Products / Operation Sales(Hoover's Inc., 2012b)

PRODUCTS / OPERATIONS PERCENTAGE

MRT 54

Buses 26

Taxis 9

Rental 5

Engineering & Other services 3

Advertising 2

LRT 1

Total 100

The public transport market operates in a duopoly market structure dominated by SMRT and SBS and both operating on different independent lines. SMRT and SBS have monopolistic powers over the routes during the contract period. Thus public transport means SBS and SMRT. Any positive effect or negative effect on public transport will affect both (SBS & SMRT). So in this coursework if something is mentioned as "public transport", literally it can be taken as SMRT.

2.0. EXTERNAL ENVIRONMENT CONDITIONS

To analyze the external environment conditions faced by SMRT, PESTEL analysis and Poter's Fiver Forces analysis are performed.

2.1. PESTEL ANALYSIS

In PESTEL analysis political, economic, social, technological, environmental and legal factors affecting the SMRT are analyzed.

2.1.1. Political

SMRT's major shareholder (54.3% share) is Temasek Holdings (SMRT Corporation Ltd 2008-2012). Temasek Holdings is owned by the Singapore government (REACH 2012).

The government encourages public to take public transport in order reduce traffic congestion. In order to encourage public to take public transport the LTA is now integrating Bus stations and MRT stations with shopping malls thereby giving the public the chance to ride and at the same time do their purchase rather than separately travelling to area from the bus stations or MRT stations to do the purchase (Singapore Budget 2012 2011).

Thus the Government's initiative in encouraging public to take public transport and Temasek Holdings having major share in SMRT shows that SMRT has lot of political favour and support.

2.1.2. Economical

Singapore's expanding economy demands more workforce that Singapore population is unable to fulfill, so more and more foreigners flock to Singapore to work. Singapore's stable government and many other factors has helped Singapore to be ranked at 14th place in best place for FDI. Expanding economy due various factors like FDI has increased the foreigner population to about 36.4% (Yeoh & Lin 2012) of the total population. Thus expanding Singapore's economy expands the Singapore population which is in great need of public transport as it is the cheapest form of transport.

With current economic expansion the daily trips by 2020 is estimated to be 14.3 million. The solution to this the huge number of trips per day for a small country like Singapore is public transport. Thus any increase in ridership due to expanding economy will also benefit SMRT.

2.1.3. Social

The average daily ridership ('000 passenger-trips) for MRT is 2295, LRT is 111, Bus is 3385 and taxi is 933 (SINGAPORE LAND TRANSPORTSTATISTICS IN BRIEF 2012). Growing population, exponentially growing CEO prices, growing MRT line coverage area, sophisticated bus services, high reliable MRT system are some of the factors that increase ridership. Thus any increase in the ridership affects positively the SMRT.

2.1.4. Technological

SMRT Institute which is a subsidiary of SMRT provides educational programmes to meet and grow the technological advancements in the land transportation. Nitec in Rapid Transit Technology programme jointly developed by the Institute of Technical Education and SMRT Institute provides strong foundation for students in the railway technology. This is programme is first of its kind in Southeast Asia (http://www.smrt.com.sg/DoingBusiness/SMRTInstitute.aspx).

SMRT International Pte Ltd, a WOS (wholly-owned subsidiary) of SMRT so strong in technology offers PM (project management), O&M; (operations and maintenance), engineering and consultancy services road to rail and road transport owners around the world. SMRT International Pte Ltd services clients in various parts of the world and they are China, the Middle East, India, Taiwan, the Philippines, Thailand and Vietnam (http://www.smrt.com.sg/DoingBusiness/SMRTInternationalEngineering.aspx).

2.1.5. Environmental

Singapore is one of the smallest country in the world. Roads in Singapore occupy 12% of the Singapore total land area when compared to 15% occupied by housing.) - (PUBLIC TRANSPORT OPERATORS IN SINGAPORE SHOULD REMAIN AS PUBLIC LISTED COMPANIES AND OPEN FOR MORE COMPETITORS). Since already roads have occupied considerable amount space in this small country, future roads will be underground, already rails have gone underground.

Government is convinced that as the roads are increased the drivers on the roads will also increase. Thus the road expansion in terms of underground is not a solution for traffic congestion. So the government is thinking of improving and extending the public transport to a great extent that more and more population will opt for public transport.

2.1.6. Legal

SMRT has 30 year lease agreement with LTA so the recent faults can be rectified and lessons can be learnt from this failure. As the road to success is working hard and learning from failures. SMRT has a learnt a lot and would make use of this learning as a stepping stone for success.

The image of the SMRT can be recovered. Since SMRT is a under Temasek Holdings so legal conditions will be in favor of SMRT.

2.2. PORTER FIVE FORCES

A

2.2.1. Threat Of New Competition

Singapore¿½s public transport market operates in a duopoly market structure. First, two large firms dominate the industry. SMRT and SBS operate on different lines independently. The ¿½competition for the market¿½ model allows companies to bid for the right to operate a route, gaining monopolistic power over that route for a contractual period. Currently, SMRT is operating the E-W line, N-S line and Circle line while SBS is operating the N-E line. They essentially act like a monopoly over their various routes.

Second, there are significant barriers to entry (BTE). Singapore¿½s public transport market is arguably a natural monopoly with the incumbent firm being able to reap substantial internal economies of scale with long run average cost falling throughout entire range of market output. With marginally efficiency scale occurring at a high output, firms can enjoy huge cost savings and produce at lowest cost. Due to high fixed infrastructure cost, the entrance of more firms may result in higher costs, wastage and duplication of resources, reducing consumer welfare. Hence, high BTE in the form of high fixed cost prevents new entrants from entering the market to erode the current operators¿½ supernormal profits.

2.2.2. Threat Of Substitute Products Or Services

SMRT major business is in MRT while SBS major business is in Bus. So the main product is MRT of SMRT, substitutes available are bus and taxi. Both cannot increase speed and increasing speed is not encouraged in order to avoid accidents. But in the case of rail throughout the world speed is increasing at a level unheard hence rail still have very good future.

2.2.3. Bargaining Power Of Customers

Bargaining power of the customers is very low because the market operates in a duopoly market structure.

The firm concentration ratio is very high and SMRT gains monopolistic power over that route for a contractual period.

Customer's degree of dependency is high because the public transport is cheap and also MRT unit's reliability is very high.

Bargaining leverage of the customer is very low because SMRT is a public transport. Anyhow mass protest on fare hikes will threaten the government or government will lose it popularity among population thus making the winning probability less in the next election.

For buyer switching cost is high as they need to buy their own car for which the CEO prices are rising exponentially.

Availability of existing substitute products is low as they need to get COE. COE is limited.

2.2.4. Bargaining Power Of Suppliers

2.2.5. Intensity Of Competitive Rivalry

3.0. INTERNAL ENVIRONMENT

A

3.1. SWOT Analysis

A

3.1.1. Strength

A

3.1.2. Weakness

A

3.1.3. Opportunities

A

3.1.4. Threats

A

4.0. CORPORATE LEVEL STRATEGIES AND COMPETITIVE ADVANTAGE

5.0. RECOMMENDATIONS

SMRT corporate strategy should focus more on MRT units.

The SMRT should focus on MRT unit because it is more eco-friendly which is the one the whole world is expecting - Use the following points to answer this point.

Rails are more eco friendly when compared to road transport. or in other words carbon foot print to transport 100 persons by road transport is very huge when compared to rail. The government should focus on trains, which have higher fuel efficiency and require less road usage per passenger. That said, a long term solution would be to better design a comprehensive rail and bus network, which would reduce the need for taxis.

Urban transport is a significant contributor to climate change

(Better Public Transport for Europe through Competitive Tendering - 2003)

(Pollution level in Singapore that to due to public transport like car Vs. bus and bus Vs. MRT)

Kyoto protocol and pollution level accepted to reduce by the public transport for Singapore

Public transport is the most efficient mode of transportation in terms of space consumption per traveller and is currently the best answer to mobility needs in densely populated areas.

(Better Public Transport for Europe through Competitive Tendering - 2003)

6.0. CONCLUSIONS

Singapore is known for its technology and fast development. A busy, fast and high-quality lifestyle makes it’s a perfect destination to live. Singapore has contributed a lot to the world. IT’s a fact that you are not aware of various achievements made by Singapore.

Marketing Research Topics

Do You need help with your essays, assignments, homework or research paper?

Hire Experienced Assignment Writers for all your writing worries!

Get Expert Help & Impress your Professors

Order Now View Sample

See a list of trending stuffs in Singapore: –

Aftershock laptops: – Aftershock laptops are the perfect gaming laptops. It offers all your gaming needs in a single device including more specifications in low price.
Bill pin: – Bill pin is a mobile app. This application enables you to split bills with your friends. You can even track the record if you have paid the rent of your roommates. This application has made splitting easy between friends.

Trending stuffs in Singapore

Brave frontier: – This game is the most addictive game in Singapore. It was made by the Singapore developers. This game has been downloaded by more 600000+ people.

Bubbly: – Bubby is a social mobile application and can say an audio version of twitter. This application is used by 80% Singaporean. It keeps you in touch with your family and friends. People in Singapore use this application more than twitter and WhatsApp. This application is made in Singapore. Students of Singapore use this application for studies purpose.

Chope: – Chope is a mobile application used frequently in Singapore to book tables in best Singapore restaurants. The application works very fine.

Due: – Due is a reminder application. It acts as a timely reminder and it will help you in remembering everything. It will remind you about anniversaries, daily schedules etc. It helps students to remind there due assignments dates.

Eubiq power tracks: -This gadget is the most flexible power outlet system. You will get a fixed number of plugs in power extension and need to buy another extension for more needs. This gadget offers you more plug-ins. Instead of using more power extension and consuming more electricity, use it and run various electronic devices from the same source. You can consume more power from one track.

Feecha: – Feeecha is a local new application installed by 75% Singaporean that delivers the digital news. You can see daily news, food reviews, movies etc here.

Garena: -The gaming company of Singapore was valued $1 billion by the world startup report. The company is popular for league of legends and FIFA online 3 games. This company serves more than 90000 people daily.

Marketing Research Topics

Do You need help with your essays, assignments, homework or research paper?

Hire Experienced Assignment Writers for all your writing worries!

Get Expert Help & Impress your Professors

Order Now View Sample

Inkcase plus: – Now you don’t need to buy printed decals to show your love for your girlfriend, family, and others. The inkcase plus case designed in Singapore will offer you a second screen with your mobile phone to display anything. You can display any picture or selfie on the screen of inkcase.

iNO mobile phones: – It is very hard to access latest Smartphone’s by older people. Singapore company iNO has launched smartphones that are generation friendly. Old, mature and young people anyone can access it easily.

Mothership.sg: – This website is the local version of Huffington post. It is more famous in Singapore than Huffington post and buzz feed. The global rank of the website is 20000 and the website’s rank in Singapore is 160.

Night owl cinematic: – This is a name of a Singapore comedy production. Their videos are more popular on the YouTube. The production house also helped Singapore police by creating a funny video about crime prevention.

Onesafe: – Onesafe is also a trending stuff in Singapore. This application helps you in creating strong passwords that are unhackable. It is available for all platforms like iOS, android, Mac, and windows. Students use this apps a lot to hide their private data or assignment copies from friends and family members

Trending stuffs in Singapore

Pipsports: – This is a mobile application also known as sports Instagram in Singapore. You can post, share your views and can follow your favorite team pages.

Razar: – Razar is a company that creates responsible gadgets needed by gamers. You will get high-quality keyboards, mouse, and other devices that will improve your gaming experience.

SGAG: – SGAG is a Singapore version of 9GAG. It enables you to share and upload content found on various social media websites. This website has more audience in Singapore than 9GAG.
Singapore MRT app: – Keep in touch with all the latest updates and information about the train services including time, routes etc. This application will help you in getting real-time information about any train in Singapore.

There is a fountain of youth: it is your mind, your talents, the creativity you bring to your life and the lives of people you love. When you learn to tap this source, you will truly have defeated age. Sophia Loren

Blk 210 New Upper Changi Road
#01-733 Singapore 460210
(Near to Bedok MRT station)
Tel: 6241 0123

Mon - Fri: 9am - 9pm
Sat - Sun: 9am - 5pm
PH: Closed

Previous: Thesis statement example narrative essay
Next post: Whoqol bref dissertation help