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Content
Pages
1 Introduction
2 Background of Circles.Life
3 Product and Services Provided
4 SWOT analysis matrix
4.1 Strength
4.2 Weakness
4.3 Opportunity
4.4 Threats
5 Competitor Analysis
6 Circles.Lifes Competitive Advantage
7 Recommendation on Business Level Strategy
8 Conclusion
9 References
1 INTRODUCTION
This assignment consist the analysis of a new telco company in Singapore called
Circles.Life regarding its strength, weakness, opportunity and treats and its competitive
market environment. The objective of this assignment is to analyse thoroughly the current
condition of the telco market and situation in Singapore and to provide a strategic plan
and action that can be used for Circles.Life.
2 BACKGROUND OF CIRCLES.LIFE
Circles.Life is a Singapore based consumer brand of Liberty Wireless founded by
three entrepreneurs, Rameez Ansar, Abhishek Gupta and Adeel Najam who had
previously worked for Temasek Holdings, McKinsey, StarHub and other companies.
They primarily provide telecommunication service in Singapore. This corporate describe
themselves as a young, innovative and energetic digital telco. Why is it young? They had
only launched their services in Singapore on 5th May 2016 (Circles.Life, 2016).
Their mission is to re-imagine the mobile experience for the digital consumer.
Circles.Life is the local roots of Circles Asia in Singapore which provide a customer
centric mobile platform. They aim to make the customers life simpler and happier by
giving customer the power to customize their mobile needs. They realize that there are a
number of un-met customer needs due to the lack of choices and flexibility of plans.
Since the beginning, Singaporean consumers for telecommunication had been locked into
complicated contracts with heavy termination penalties, bundled plans with services they
might not even use. Consumers are also exposed to hidden charged which they have to
control on.
Therefore, they promote and encourage their customer to build their own plan so
that they pay only for what they want and not extra for not whats unneeded. Circles.Life
provide a seamless services which evolve with the customers needs. They also promise
that there will be no hidden charges in Circles.Life. Consumer will only need to pay for
what they choose in their plan. They will even delight their customer with little surprises
from time to time.
4.1 Strength
a. Offers data-centric packages which suits the current trend of usage
Nowadays user needs more data to watch movie, post on facebook, instagram etc.
Plus, most younger generation are only using Whatsapp as their communication tools
with their friends and family. Circle.Life see this needs and design their services as a
data centric service which provides 3GB service at the basic package where other
mobile services only provide 300MB in Lite plan of M1 and 100MB in Combo 1 of
Singtel in similar prices of postpaid services.
It is even more attractive for early birds as they will get a life time 2GB add on to
their data which is the cheapest to get 5GB in $28 (Circles.Life, 2016). Infocomm
Development Authority (IDA) show that Internet users consume 10 million GB of
data each months. Internet Live Statistic also shows that 80% of Singapore population
uses internet where within this population, 31% are between the ages of 25 to 34.
b. Able to launch so early, in time to attract customer unsatisfied with other telcos.
Time is money and by able to launch early means that Circle.Life holds on to
more opportunity to attract customer. Being pioneer in certain area means a bigger
market share in targeted group of customer in the future. This is because most
consumer dont get what they want in telco which is customization as well as data
centric services before the launch of Circle.Life. Once Circle.Life launch their
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services, it is a fresh new idea of customization where a not so needed SMS bundle is
taken away and substituted with data with reasonable add-ons really attract consumer
to give it a try. If others were to launch similar packages, they will be losing in time
and future market share in this segment.
d. It is the only mobile virtual network operator with less assets such as physical
infrastructure and stores. Therefore, less maintenance and burden on physical
assets and debts
Circles.Life do not have their own hardware infrastructure and they provide
services through an agreement with M1 through Liberty Wireless. M1 had an
agreement which enable Liberty Wireless to deliver voice, messaging and data access
to its customers using M1s advanced mobile network. Liberty Wireless is a
Singapore-based mobile telecommunication company where under its operating brand
is Circles Asia. This means that Circles.Life can use the infrastructure of M1 without
owning one. This saves Circles.Life in maintenance burden and long term debts
which will exist when acquiring assets. This enables the cash flow of Circles.Life to
be more flexible so that they can provide more innovative services without cash flow
restriction.
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4.2 Weakness
a. Content of service is still limited (No broadband, no free movie or video)
Circles.Life only provide mobile services which is mobile data, voice calling and
SMS. This is just a narrow part or primary part of a telecommunication services. They
still do not have broadband services or free movie and video services. Singtel provide
a Singtel Circle which provide user free local data every Sunday for the family to
watch movie together. All other companies provide various combination of service
which includes home internet, TV packages and mobile packages. Due to the fact that
Circles.Life currently do not have their own infrastructure, they will not be able to
provide these services until they have one. This is really limited for people who have
family and would like to bundle up services which will be cheaper for the whole
family. Other telcos have more services which they bundle up to sell as a suite which
is cheaper and easier for consumer.
Singaporean spend more time using their computer (We Are Social, 2015) and
prefer to do online purchasing through computer as well. Without the broadband
services or sharing internet with computer conveniently, some customer who spend
more time surfing internet through computer may feel inconvenient for them to use
Circles.Life alone.
c. Target group is too narrow which will not contribute much to market share.
The basic package of Circles.Life only consist of data and 100min talktime.
Although it is true that it is a trend now that more people are getting engaged with
internet, there are several more segment of the market where their primary needs may
not be just data. For example, businessman or in a business setting where most
companies might sign a package for their staff. These market segment may need more
talktime or even unlimited call to be attracted. Circles.Life is just starting their
business and they do not have enough type of package which will be suitable for
different segment of people. For example, StarHub and Singtel will offer their
packages to different type of user for example Lite plan for people who does not use
mobile phone much and youth for younger segment of the market who uses internet
more. M1 even provided attraction like unlimited free calls to 3 M1 numbers which
will attract consumer in family, free youth benefits and senior benefits. Circles.Life
does not have much diversification in the basic plan where their plans will only attract
data centric user.
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d. Collaboration with other entertainment and financial company still not fully
established
Most telecommunication companies will establish collaboration with companies
that provide movie streaming, bank etc. As far as the public know, Circles.Life had
only agreement with two bank and they are still making their effort to establish more
agreement with other banks. Of course, not only the bank, due to it is still new
without the collaboration with other company which most consumer would be
interested in like movie provider application which would provide movie streaming at
a lower rate would be interested. For example, Singtel provides free local data for
family on Sunday for customer to have a family time watching movie. StarHub also
provide a Deluxe HD Pack which provides channels of movie and TV show to be
stream in various device for only $26.75 a month. This will be a bonus for customer
in terms of benefits in subscribing a line of telecom company.
4.3 Opportunity
a. The company has leasing deal with M1 which Circles.Life is able to utilize M1s
physical infrastructures with the idea that products is as good as M1s
As Circles.Life had just only started their business, it is an opportunity for them to
just use the physical infrastructure of M1 for call, messages and data services without
having to manage their own infrastructure which will be a burden for a new company.
Instead, using M1 physical infrastructure as a virtual mobile network provider enables
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them to provide equally good network and services to customers through M1s
established reputation while responding to the problem that most consumer faces with
their mobile packages which create resonance with some consumer who thinks the
same as Circles.Life.
b. Pricing although almost the same with other telco but offer attractive packages
compared with other existing telco.
Most telco offers packages wihich stated with a price close to $30. M1 provides a
Lite plan for $28 which offers 100mins talktime, 500 SMS or MMS and 300MB data.
Singtel instead offers 100 minutes call, 500 SMS or MMS and 100MB data for
$27.90. As compared with these two companies, the package offered by Circles.Life
is definitely more interesting as no one needs SMS nowadays but more on Whatsapp
which is free in Circles.Life. Plus, the other telco will extra charge the customer for
caller ID which will make Circles.Life cheaper.
c. No long contracts and hidden cost which had been an issue that troubles
Singaporean for a long time
There is no contracts in Circles.Life which means that customer are not bounded
in Circles.Life if they find Circles.Life not suitable for them. This make interested
consumer to be more light-hearted to try Circles.Life with the mentality that they can
switch anytime they want to other telco. Long contracts had been an issue to most
customer because they will need to pay penalty when they want to change their
package according to their changes of needs when they are still in a contract. No long
contracts, no hidden charges and no penalties for alteration of package is the one of
the attracting key point for customer because Circles.Life customer do not need to
worry about being charged with charges which seems unnecessary and unpleasant,
which the other telcos are famous for being overcharging customers.
d. No waiting time at telco stores like other existing telcos which suit the fast pace
life of Singaporean
Since Circles.Life is a virtual mobile network operator provider, they offer their
services online through website. No more waiting time is needed for customer to
queue at stores and more efficiency in managing customers account through the
mobile application ease life of busy Singaporean. Transaction could be done
anywhere and accounts can be changed anytime attracts Singaporean whom
especially are good in computer and e-banking as more and more Singaporean are
doing their shopping online. This is a global trend which is now uphold by
Circles.Life.
4.4 Threat
a. SIM-only plans such as M1s mySIM with offerings are still cheaper
MySIM with a subscription fees of $20 offers 150 talktime, 800 SMS or MMS
and 3GB data which is offered by M1 is still cheaper than what is offered by
Circles.Life. The talktime and SMS or MMS is more than what offered by
Circles.Life in a way more cheaper price. M1 even offered to upsize data for 2GB for
only $5.90 per month. In this case, there is not much advantage hold by Circles.Life.
Additional to the price advantage of M1, M1 also offers benefits of unlimited free
calls to 3 M1 numbers (M1, 2016).
b. StarHub offering of SIM Only plan is also cheaper although there is no freedom
of customisation.
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StarHub offers a package of 150 minutes outgoing local calls, 1000 SMS or MMS
and 3GB local bundled data for only $21.45. As we can see, StarHub offerings is
more and at a lower price. This SIM Only plan also has no contract, no cancellation
fee and commitment. It offers this package in an attractive price especially for people
who do not like hassle in mixing and matching (StarHub, 2016). Circles.Life really
have no advantage here as well when competing with StarHub in the basic package.
d. Customer details leaking from Singtel App in March 2016 may causes chaos in
trusting the privacy and legacy of mobile application.
Reports on social media showed people being able to log in to other peoples
accounts and see their personal details using the My Singtel app causes the app to
be suspended. Singtel said that this is due to the software glitch (Today, 2016).
Whether it is a due to cybercrime or software glitch, leakage of confidential
information from various ways had been an issue of cyber security. Since,
Circles.Life is a virtual mobile network operator, they are using all cyber application
to manage their system. In fact, the case of Singtel App may cause some customer to
be afraid to use mobile application. It is the challenge of Circles.Life to ensure that
their services and mobile application is safe to be used since the older established
companies had this problem.
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e. Other telcos recently added a new options to upsize customers data capital.
StarHub offers a Plus 3 to their package which allows adding 3GB to the bundled at
only $6 (StarHub, 2016). Singtel also offers a DataX2 which double data for just
$5.90 monthly when customer signs up for Combo 2 postpaid plan and above
(Singtel, 2016). M1 in the other hand offers upsized data of less than 1 GB of the
bundled data at $5.90 (M1,2016). Although consumer may not need so much data, it
is still cheaper in upsizing the data capital when compared to Circles.Life.
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5 COMPETITOR ANALYSIS
The tool that I will be using in this section is competitive profile matrix. This is an
essential strategic management tool which compare Circles.Life with other major players
in the telco industry in Singapore. This matrix will show a clear picture of the strong and
weak points of each company. The scoring for this matrix is measured on the basis of
some critical success factor of the industry. Each factor is measured in the same scale
which mean the weight where weight remains the same for all company while rating
varies. The rating represents the response of the firm towards the success factor. It is
better to make the rating standardised for successful analysis. The weight indicates the
relative importance of the factor for company to be success in the industry which total
into 1.0. Before starting the competitor profile matrix, the following are the condition and
response of the telcos that can be found (Kasi, 2012).
Singtel
Singtel provides a diverse range of services including, fixed, mobile, data,
internet, TV, infocomms technology (ICT) and digital solutions. It is known in Singapore
for its best reception. Headquartered in Singapore, Singtel has more than 130 years of
operating experience and played as a major communications hub. Singtel is also
strategically invested in leading companies in Asia and Africa. The Group serves over
600 million mobile customers around the world. They received various awards in 2016
which includes Most Innovative Video Service in Telecom Asia Awards 2016, HRM
Awards 2016, HardwareZone + HWM Tech Awards for Best Telco and Fibre Broadband
Service Provider (Readers Choice) etc. There are 13 outlets of Singtel in Singapore and
also operate an online store (Singtel, 2016)
Singtel currently has a market capital of $61,223.04 mil with yield 4.56% and
dividend of 0.07. Current stock price of Singtel on Stock Exchange of Singapore is $3.90.
Singtel diversified their holdings and investment. Singtel has a strong financial capability
to improve their service in many ways. They focus in providing services in various areas
and mobile services is not their only focus area. Singtel has a strong brand name and
were the first to roll into providing 4G services.
However, SingNets a subsidiary of Singtel had poor management skills and
failed to educate the importance of privacy and issue had happened which causes uproar
among consumer. Recently, the leakage of the confidential issue of customer on Singtel
Application is also an issue which would put a thorn in peoples heart. From the last
statistic available, Singtel had 37.2% of Singapores market share. It provides many
variety of plans with moderate price as compared with others. However Singtel does not
provide data-centric package at a price as low as the other telco. Combo 2 is at $38.61 for
2GB data and can only double data at $5.90 which will be more expensive than others.
Singtel also charged customer for caller ID every month.
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As for customer service, there had been reviews stating dissatisfaction on various
issue in www.customerservicesscoreboard.com. The issue includes Singtel does not
provide new SIM card for customer who recontracted with them, spike of the mobile
data, leakage of mobile data and even problem in installing a fibre broadband at home.
Worst of all, these problem are not resolved and attend to as soon as possible, even if
customer called Singapore or overseas customer service, not much action is taken. Singtel
is also said to overcharged customer and with lots of hidden charges which is the same
condition as the other two big telcos.
In www.glassdoor.com, a review from employees was done and the average
rating is 2.8 upon 5. Singtel is said to have good compensation and work-life balance
with good working environment. However, there are certain level of employees who
disagree and said that the basic pay is low and there is not much chance of career
progression.
M1
M1 Limited was formed in August 1994 and is expanding mobile telecom
business rapidly in Singapore. They operate nationwide 4G, 3G and 2G network and
offer various services which includes mobile services, mobile broadband, home
broadband and international roaming (M1, 2016). They integrate their services in a
holistic view which is their selling point from others. After the launch of Circles.Life, M1
extends upsized data to mySIM and in-contract customers for $5.90 on 9th June 2016. M1
has 17 outlets all over Singapore. M1s customer services had been putting a lot of effort
and had been one of the factor for marketing to assure people to switch to M1. Their
marketing strategies is through video advertisement and public relations. M1 is said to
give the best customer services among the 3 big telcos.
The stock market price of M1 Ltd is currently $2.57 with a market capital of 2.41
Billion and 5.95% of dividend yield. It had been a decrease when compared with 2015s
stock market. In 2014, M1 had a market share of 24.5%. M1s data bundled is quite
expensive but its mySIM plan is relatively cheaper than Circles.Life at only $20 for 3GB.
Furthermore, it has its exclusive benefits of unlimited free calls to 3 M1 numbers.
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StarHub
StarHub is Singapores fully-integrated info-communications company which
offers a full range of information, communications and entertainment services for both
consumer and corporate markets. The mobile network that it provides is of 4G, 3G and
2G services. It also manages an islandwide network that delivers multi-channel pay TV
services as well as ultra-high speed residential broadband services. It aims to provide a
wide range of data, voice and wholesale services (StarHub, 2016). It is known to be good
for its discounts and reward program. Customer service is also quite efficient for
StarHub. However, some people complained that StarHub will have problem like delayed
SMS delivery, calls cut off, no coverage and lack of reception according to a user in
sgforum.com.
StarHub has a market share of 38.3% in 2014. Its current market capital is 6.13
Billion with dividend yield of 5.65%. It has 19 stores outlets around Singapore.
For mobile services, StarHub only offers one type of postpaid packages which is
the SIM Only plans which is almost similar to Circles.Life which is contract free but it
cannot be customised. What it offers is still cheaper than Circles.Lifes basic package
which offers 3GB data, 150 minutes of local calls, 1000 SMS or MMS for only $21.45.
However, customer can add 3GB to their package for only $6 per month. This is way
cheaper than the customised add on data in Circles.Life.
StarHubs employee reviews in www.glassdoor.com rated 3.1 upon 5. The pros of
working in StarHub is the work life balance is there with official times off. The working
environment is also more flexible and good pay. There is cons too and some said that
people in StarHub are largely resistant to changes and has weak internal development
teams. Management only prefer people who listen to them with no suggestion.
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The following is the competitor analysis of all the telcos in weight and scoring.
Critical Success
Factors
Weight
Circles.Life
Singtel
M1
StarHub
Advertising
0.05
2.0
0.10
3.0
0.15
3.0
0.15
4.0
0.20
Customer Service
0.30
3.0
0.90
1.0
0.30
4.0
1.20
2.0
0.60
No Hidden Charge
0.15
4.0
0.60
Employee Dedication
0.05
4.0
0.20
3.0
0.15
3.0
0.15
4.0
0.20
Financial Profit
0.05
1.0
0.05
3.0
0.15
4.0
0.20
3.0
0.15
Customer Loyalty
0.10
2.0
0.20
3.0
0.30
4.0
0.40
3.0
0.30
Market Share
0.03
1.0
0.03
4.0
0.12
3.0
0.09
4.0
0.12
Product Quality
0.15
4.0
0.60
2.0
0.30
4.0
0.60
2.0
0.30
Top Management
0.07
3.0
0.21
3.0
0.21
2.0
0.14
2.0
0.14
Price Competitiveness
0.05
4.0
0.20
1.0
0.05
2.0
0.10
3.0
0.15
Totals
1.00
28
3.09
23
1.73
29
3.03
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2.16
The rating are applied as 0 for no response, 1 for poor response, 2 for average
reponse, 3 for above average response and 4 for superior response for most of the factors.
As stated above under critical success factors are factors that will affect the
success of the telecom company. The weight is the weightage of each factor and all four
telcos are rated. From the factors, customer service, hidden charge, product quality and
customer loyalty are weighted higher than the others because these affect the experience
of the customers with that particular telco which then affect the business. Most rating are
based on company profile and reviews found on internet regarding these telco except for
Circles.Life because it is too new and not much reviews can be found. Its rating is based
on facts and promises that it made that we assume that it will be accomplished by
Circles.Life.
From the above we found that Circles.Life has big chance in striving because of
its promised customer services, data speed, reasonable price and innovative quality
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product. Most importantly what it promise is the wants of most customer which now it
promise to answer. The hidden charge is especially important as it had been an issue of
being overcharged in all the other 3 companies. M1 is better in customer services while
StarHub and Singtel had the lowest score because of their poor customer service and
network problem. M1 shows the highest dividend yield and thus assume to have higher
financial profit. However, financial strength can be built up slowly eventually.
Circles.Life is behind the others in advertising, financial profit and market share.
Since it is new, it should invest more on advertising which is economical through
YouTube for example and increase its popularity. Circles.Life only had targeted group of
15-20% of the market share. And we assume that that is the maximum it can reach with
its current offerings. What Circles.Life can excel from the others is building good
reputation for what they promise and providing more option to other target group in the
future to capture more market share.
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a. No bad record
Circles.Life is a new company with no bad record previously. Not like others of
Singtel and StarHub who had lots of customer complaints and bad customer service
record which was well known. Customer will be willing to give Circles.Life a
chance to prove that they can provide better service. So, Circles.Life has a
competitive advantage to build up good records and prove that they are good.
d. No contractual obligation
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Most telcos will bind customer to a year or two contracts to have a more pleasing
discount and better deal in data. However, many customer had problem during the
contract with their services which is not attended to and Singaporean now has less
favour towards contract with telco. With no contract obligation, Circles.Life is at
advantage to ask consumer who are about to terminate their contract to give them a
try.
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Circles.Life to have greater margin of profit with lower operating cost. It can
provide services which is cost efficient without the burden of physical asset and
stores. This is a cost leadership strategy which is only effective if Circles.Life
maintain its efficiency of services and quality of product. Circles.Life should only
hire enough employees for their company to operate and digitalise everything to
decrease unnecessary cost.
d. Provide customer with promotion of giving them credit for introducing new
user to Circles.Life (Low cost focused strategy and cost leadership)
Circles.Life can also penetrate the market through introduction of friends into
Circles.Life buy their current customer. This can be done by giving a promotion or
benefits of crediting money into the customer accounts, lets say $5 for each
introduction of new friends. This can be achieved by adding a column during the
registration for the friend to add on regarding the phone number of their friend who
introduce them the Circles.Life package. Then, money can be credited to the
customers account. This is a way of advertising through people which is cost
effective and contributes to cost leadership strategy. It also decrease the cost for
customer which contributes to low cost focused strategy.
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8 CONCLUSION
As we know, the telco market in Singapore is very saturated and all the telcos
differentiate themselves from the others in term of service. How Circles.Life started their
business in differentiation strategy is a good way of making themselves known among
the consumer as all the other three telcos had their own bad records. Circles.Life knows
what consumer wants and the first targeted group are heavy users for the next couple of
years. Much appreciated is the no hidden charges and customisation of services which are
most attracting. Circles.Life really have much competitive advantage to start with in this
industry and it started in a slim structure which is popular nowadays in business.
However, other telcos may follow and these advantages may disappear as time goes by.
Circles.Life should forever be working to create more competitive advantage to stay in
this competitive industry.
(7016 words)
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NONHOMOGENEOUS PREFERENCE STRUCTURES IN SWOT ANALYSIS
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Glassdoor. 2016. MobileOne Singapore Reviews. [Cited: 2016, June 24th]. URL:
https://www.glassdoor.com/Reviews/MobileOne-Singapore-ReviewsEI_IE6806.0,9_IL.10,19_IM1123.htm
Glassdoor. 2016. Singtel review. [Cited: 2016, June 24th]. URL: https://www.glassdoor.
com/Reviews/Singtel-Reviews-E3971.htm
Glassdoor. 2016. StarHub Reviews. [Cited: 2016, June 24th]. URL: https://www.glass
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Infocomm Development Authority of Singapore (IDA). 2016. Online Application and
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Internet Live Stats. URL: http://www.internetlivestats.com/internet-users-bycountry/
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report-seeing-other-users-personal-details-app
Valverde, A., Magalhaes-Fraga, S., Magalhaes, J., & Barroso, W. (2015).
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