team c week 3 assignment

8/6/2019 Team C Week 3 Assignment

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Running head: Drive to Make Singapore More Connected 1

Drive to Make Singapore More Connected

International Marketing MKT/GM571

Drive to Make Singapore More Connected

Introduction

Singapore is one of Asias and the Worlds leading financial countries, and a country that

is experiencing large growth. With its presence on the international stage companies within

Singapore require technological solutions for continued growth. UKs IT consulting services


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companies are considering expanding into Singapore, and have developed an outline of its

position, competitors, product features and pricing strategy as a roadmap to successful growth.

By following the plan outlined below UKs IT consulting services companies can successfully

navigate its way to become a international business.

Marketing Position Statement

The core activity of Information Technology Consulting Services of United Kingdom

(UK) will play a significant role in Singapores drive to develop and implement iN2015.

(Singapores Strategy with iN2015 is to develop an infocomm- savvy workforce and globally

competitive in information technology and communication manpower). UKs IT consulting

services have conducted a joint study of Singapores IT markets and have determined a

segmentation of Singapores markets to provide accurate, predictable, and stable basis for market

targeting and positioning in reference to values, attitudes and beliefs which are fundamental

factors that explain variations in the behavior of consumers belonging to various market

segments (Pitts and Woodside, 1991).

UKs IT consulting services are aware of Singapores universal culture as well as the

diverse ethnic groups social and personal values are considered to be crucial to human

motivation and behavior in Singapore. UKs IT consulting services ready to conduct business in

Singapore will accommodate the various value systems and work accordingly with all identified

market segments in Singapore.

UKs IT consulting services will provide Singapores IT agencies and services with

specific administrative and technical support needed to perform IT planning by offering cost-

effective alternatives. UKs IT consulting services will bring into Singapore the business insight,

experiences, technical capabilities, and the resources to design and build successful technology-


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based business solutions across several technology platforms with all clients. UKs IT consulting

services will provides information technology direction in setting and management services for

small and mid-sized businesses with the following characteristics: new and emerging business

models, need for new or redesigned business workflows, and need for to improved coordination

and collaboration with customers, vendors or agents. UKs IT consulting services will design

and develops custom database and workflow applications for its clients across a wide range of

functions including sales and marketing, order entry, order fulfillment, engineering, document

management, accounting, budgeting, legal, information technology and human resources.

The Singapore Information Technology Report which described, Singapores market

assessment and independent 5-year forecasts covering personal computers and software; semi-

conductors, memory chips, integrated circuits and general components; the internet and IT

solutions, (Singapore Information Technology Business Monitor International). The report

described Singapore IT business opportunities and risks as favorable based on all available IT

industry business trend, government policy changes, IT activities and investments in Singapore.

The report also covered the IT industry structure, size and value of industry sector; overview of

industry landscape and key players; assessment of business operating environment and latest

regulatory developments, (Singapore Information Technology Business Monitor

International). Based on historic data and projections made for five years leading to 2015, the

significant indicators revealed are supported by clear hypothesis, and scrutiny of explanation of

any adverse risks associated to the initial forecast. Productivity report benchmarks:

y In 2007, Singapores infocomm industry saw its revenues grow 13.8 per cent to S$51.7

billion. The hardware segment was the largest contributor, at 55 per cent, followed by

software (17 per cent) and IT services (12 per cent).


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y There are more than 130,000 infocomm industry professionals in Singapore. Of this,

more than 80 per cent have at least a tertiary education.

y Singapore is home to more than 80 of the top 100 software and services companies.

Many of them, including the top 15 software companies, have regional or Asia Pacific

headquarters here. (Singapore Business News, May 5, 2011)

Rivalry

Companies in the IT business world must compete with rivalries and some industries have

more than others. UKs IT consulting services must create advantages over their rivalries in making

the choice of the consumers difficult in choosing an information technology service other than UK

packages. There are different avenues UKs IT consulting services can take when trying to find a

competitive advantage over rivalries. They can increase or decrease price, improve service or

product separation over the competition, look for other distribution channels, and exploit suppliers to

meet certain prices and quality (n.a., 2010).

UKs IT consulting services must create an advantage for the services being provided within

the industry, since they are entering a new market. Entering the market with a decrease in price can

gain an advantage and increase the customer base. UKs IT consulting services will need to evaluate

the competition and develop a strategy based on the findings of how other companies provide

service. UKs IT consulting services will need to find a unique way to provide services that will set

the company apart from the competition. It can exploit suppliers in giving a price advantage and

meet a higher quality standard over the same supplies sold by their competition.

Threat of Substitutes

Substitutes of goods or services can have an impact on companies within the industry.

Companies offering a product or service substitute do so because of a lower cost or an easier way of


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providing a service to the consumers. A substitute can limit the industrys ability to raise prices on

goods or services because choices consumers have within the industry. UKs IT consulting services

must have concerns of companies hiring their own information technology departments in reducing

the need to hire an outside the company to perform these functions. In Singapore, companies

increasing in size and sale volumes are looking for alternative ways to meet information

technological needs or in reducing costs and overhead.

Buying or Supplier Power

UKs IT consulting services should look for ways to gain advantages not only over the

competition but suppliers. Industries with multiple suppliers and few buyers create a situation

allowing buyers to possess the power to dictate price. The power shifts from the buyer to the seller

as the number of suppliers decrease and numbers of buyers increases. UKs IT consulting services

will need to find multiple suppliers for equipment and software allowing the company to dictate

price the company will pay for supplies. By creating a buying power ITS can have an advantage over

the competition and allow the company to provide the same service for a lower cost.

Just like manufacturing and service companies, suppliers also look for ways to gain power. If

these powers are in the hands of suppliers, the costs of the supplies can be increased having the

industry pay more for the same materials. The company can decrease the chance of having a supplier

possessing power by increasing the number of suppliers used to meet the demands of the consumers.

UKs IT consulting services will have worries if the stronger more powerful suppliers start to

acquire and merge with one another reducing the available suppliers within the industry. This would

be done by reducing the supplier competition allowing the companies to increase the price of

supplies used by UKs IT consulting services.

Threat of New Entrants and Entry Barriers


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Just like UKs IT consulting services, competitors are looking for new markets to expand

within the industry trying to increase market share. As UKs IT consulting services is expanding into

Singapore, other companies are considering entering the countrys market. As the industry of

technology is growing around the world, so is the number of companies expanding into the market.

The more companies entering the market can decrease the profits and dilutes the market share

among the industry.

Expansion into Singapore can have some difficulties because the country can possess entry

barriers. Entry barriers are created by government, patents, trademarks, assets, and organizational

economies of scale limiting access by organizations (n.a., 2010). Governments can create laws and

regulations making entry into the country difficult for the company. Singapore is a country looking

to open the door for companies looking to expand within the countrys borders. Government

regulates patents and trademarks but companies must make sure there are no active or current issues

arising from the goods and services entering the country. The company might not have the funds

needed for expansion into the new market. UKs IT consulting services needs to carefully evaluate

the costs of entering the information technology market in Singapore. The company will need to

determine if a merger will better suit the goals of the organization than the possibility of funding the

expansion themselves.

Product Features

With the purpose of enhancing customer appeal a company may need to reassess one or

more of the product/services features. Product Modification allows the company to amend one

or more of the products features and could include reformulation and repackaging to increase

customer appeal (Schwalbe, 2005). Modifications to the product/service can set a company apart


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to give it the competitive advantage to competitors. Product modification is put to use frequently

as a way of extending the product life cycle of a product.

The following are various reasons to hire consultants (Schwalbe, 2005):

y To acquire external, unbiased advice

y To acquire the consultants' expert knowledge

y For short-term assistance throughout a one-time project

y To contract out IT services partially or as a whole

A feature of IT Consulting Services apart of the Product Modification is the consulting fees:

In conventional instances the cost for IT consulting is a daily/per Consultant calculation.

However, there is another option; IT consulting fixed fee, an IT consulting fixed fee contract is

applied specifically to plans thoroughly outlined (Schwalbe, 2005):

y Troubleshooting IT Consulting

y Infrastructure refreshment projects

y

Execution of precise well illustrated features, such as monitoring platforms

y Infrastructure Capacity Planning

y Network design

Typically, an Information Technology consulting fixed fee is for a precise quantity of work,

inside a specified time frame. Numerous companies are currently progressing toward an

Information Technology consulting fixed priced standard. This is likely to progress as additional

companies currently insist on completion of Information Technolgy Consulting services inside a

specified timeframe and price configuration (Schwalbe, 2005).


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Unrestricted consultancy structure commonly favor the consulting firm, as the consultancy

firm benefits on day-to-day basis; there lacks motivation to finalize assignments inside a specific

timeframe. The result is frequently equivalent to project overruns and considerable cost overrun.

Pricing Strategy

Since services are intangible, modification in them cannot be noticed by changes on their

colors, shapes or sizes, instead changes or modification of services are related to quality,

customer services, dedication, and knowledge. Informational Technology Consulting is one of

the services that suffer more and constant modifications due to the updates and innovation of the

technology processes. Technology is constantly improving and IT Services are used nowadays in

almost every business around the world for different purposes like: to market their products with

more advanced technology using digital products and/or 3D commercials, improving customer

services by being able to respond, communicate and even sale to customers worldwide.

Modifications of IT Services consulting are based on the principle of intelligence. As stated by

Hollensen, continuous information exchange with consumers allows companies to create

products and processes using the best possible modules (2007, p.457). Such exchange with

consumers allows the IT consulting firm to provide their customers with the service that covers

their necessities and expectations.

Variations on the IT consulting services depend on the technological level of the country

or city the service is provided to and their development of new technological processes. Between

United Kingdom and Singapore the technology development is on the same level, this allows an

IT consulting firm to offer companies in Singapore high technology. According to the World

Economic Forums Global Information Technology Report 2009/2010, Singapore has been

ranked as the second most network-ready country in the world and number one in Asia(EDB


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Singapore). Also, IT companies in Singapore present property protection regime, good logistics

connectivity, an easy access (EDB Singapore).

Assessment of Costs

How much will it cost an IT consulting firm to modify their services? These costs

include: all seminars, classes, conferences, etc., that professionals on the IT firm need to attend

to keep themselves updated with all new technology. It will also include all equipment necessary

to provide the IT services to their clients like: computerized equipment, servers, hardware,

software, licenses and procedures manuals for customers use. These costs may change as the

technology changes and as accessible the new technology is to the public, and depending on the

customers requirements.

Conclusion

Given the significant importance of Singapore in the Asia market as a highly populated

and urbanized country that provides Asia connection to financial resources Singapores demand

for IT is growing at rapid paces. For ITS if it can identify a financially fit policy of expansion to

pursue then future growth in Singapore would be very beneficial for it. It policy must identify

ways to undercut competitors already established and as new entrant in the market build value of

its services. By dong so ITS can establish itself as a global business and enjoy new revenue

streams.


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References

de Leon, Corinna T. (1994) Value Segmentation of Singapore: Perceived Values Of Gender

Categories

Hollensen, S. (2007). Global Marketing: A Decision- Oriented Approach. Retrieved from

http://phoenix.edu

http://www.sedb.com/edb/sg/en_uk/index/industry_sectors/information_technology/indus

try_background.html

Industry Background. EDB Singapore. Retrieved from

N.A. (2010). QuickMBA: Strategic Management. Porters Five Forces:A Model for Industry

Analysis. Retrieved on May 8, 2011, from

http://www.quickmba.com/strategy/porter.shtml

Schwalbe, K. (2005).Information Technology, Project Managment(4th ed.)

Singapore Information Technology Business Monitor International Published: 26 Apr 2011

Quarterly.

Singapore Information Technology Industry Singapore Business News May 5, 2011

team c week 3 assignment

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