The population of Singapore is 5,399,200, and keep Unceasing The transparency International is important for a country, because it can sends powerful information to reflect a country’s government. According to the corruption perceptions index, the daily reality for people be showing clearly, it provide the score of the county, and the relationship between the government and citizens. The business will be easier in a country that people happy with their government.
In Singapore, the government corruption index is low, therefore, the social society is more stability, it’s a good signal for TWIG many chose Singapore. Singapore is one of the highest income countries in the world, I‚s important for TWIG company, because TV as the most expensive tea, be known as the luxury brand which is offering in the five star hotels. The world “Luxury/’ is defined as something can bring pleasure and happiness, not considered about a necessity. (Dictionary, 2010). High income level stands for the people already take care about their daily life.
According to Mason’s Hierarchy of needs, at the time people get more money, the needs for them life also change. Singapore as a high income level country, the customers not only have the ability to pay the luxury, but also need luxury to rich their life. The company can be more successful if they can adapt products and services to prevalent coloratura conditions. (Kaplan ITEM study guide, p. 75) Singapore as a country which has 75% of Chinese, the cultural influenced by Chinese deeply. China is the country known as the town of tea, the tea-culture is already in their daily life.
TWIG company as a company selling the tea as the key product, needs the customer prefer drink tea in their daily life. Further more, Singapore as a country have the fast life styles, people armorial finish their work efficiently, and having a cup of tea in the afternoon is becoming a habit for the white collars. Therefore, Singapore is undoubtedly the best choice for TWIG to invest. Technology is also important for an organization to consider about the country. In Singapore, the Internet usage is high, which means TING should develop their advertising by using Internet, and selling their tea through on-line store.
As the development of the technology and society, the people are used to pay their bill by credit card on- line or use the card machine. So the next strategic step for TWIG tea company would be offer credit promotion. Immigration laws are liberal for talent foreigners is an important factor to a developing company. In Singapore, it is not difficult to get work licenses . Therefore, a company no need to worry about the lack of workers. The currency in Singapore is higher than its neighbor countries, the foreigners work in Singapore can earn the higher salaries than they work in their own country.
It will help an organization looking for the overseas staffs easily. TWIG as an international company, needs lots of foreigners work for them, because Singapore is an attractive entry, TWIG have more chance to choose their staffs from all over the world. In echo-environment factor, Singapore beautiful landscape was been mentioned in the table above. The natural landscape is important because it is the reason to attract tourism. FIJI offering over 1 ,OHO single estate fine harvest teas, can easily satisfy travelers from around the world.
After the tourism come back to their own country, they become the free advertisement for TWIG tea, the popularity can be improved at the same time. Porter’s 5 forces can be defined as the model to identify and analyze 5 nominative forces that shape every industry, and it will help determine an industry’s weaknesses and strengths. (Dictionary, 2010) porters 5 forces including threat of new entrants, threat of substitute products, bargaining power of suppliers, bargaining power of buyers, and competitive rivalry.
Porter’s 5 forces analysis is the way to collect the information, but not the test of industry. In this report, Porter’s 5 forces is going to analyze the tea industry in Singapore, and find out the tea industry’s weakness and strengths. Here is another table showing the Porter’s 5 forces analysis, below the table, here are several details to explain the figure, and followed by the overall opinion about whether the tea industry is attractive in Singapore, and where is the weakness part of tea industry in Singapore.
Porter’s 5 forces analysis of tea industry The threat of new entrants is low; tea industry is attractive in this factor. There is no organization like competition, threat of new entrants is low means the competition is low. Threat of new entrants is low because of 3 reasons; first of all, the cost of entry is high. Although Singapore government supports private business, but the license will costs a lot and the process is implicated; secondly, avgas as the local brand, almost make up the whole tea market in Singapore, is difficult for other company to join.
Thirdly, the government regulation is strict. The ledge in Singapore have a high standard for food and drink, it’s not easy to looking for the tea source, but INNING has a long history in Singapore, not only experience, and also have lots of place to get the tea leaves. The threat of substitutes products is high, tea industry is not attractive in this factor. Because there are lots of options for people to choose a drink. Such as water, soft drinks, wines, beers, and juices. Compared tit other substitutes products, tea is the only one need time to prepare, it’s not convenient enough.
Other drinks can served by bottle, keep in the fridge. Tea needs tea pot and tea cups to prepare, after tea become cold, the taste will not be as good as before. But TWIG company come up with a good idea to solve this problem. The team creative the cold tea, which prepared in a special way, not only keep the tea’s special smell, and also suitable in tropical weather. (TWIG tea history, 201 3) The only deficiency is cold tea still need time to prepare. The bargaining power of suppliers is low, tea industry is attractive n this factor.
Singapore is near by China, and there is lots of tea garden in China, TWIG can enjoy the cheap tea source and also the cheap workforce. China also famous for the tea, they have special The bargaining power Of buyers is low, tea industry is attractive in this factor. TING is the only one that selling tea as the luxury brand, Singapore is the county have a high income level. Lots of people need a place to consume, Duvet’s offering their tea in five star hotels, offering a comfortable environment at the same time. The number of the buyers is big, and the number of competitors is small.
The competitive rivalry is weak, tea industry is attractive in this factor. There are 2 reasons, firstly, the competitors are weak. TWIG tea company is the local brand in Singapore, the TWIG brand build for celebrating the island’s great history as a trading post for teas. (TWIG tea history, 2013) TWIG have a strong history on Singapore, in other words, TWIG tea brand is growing with Singapore. Secondly, tea industry growth is slow. Overall, the tea industry is attractive in Singapore, only need to improve the way to prepare the tea, make tea become a convenient drink.
There are 4 strategic recommendations will be described in order to solve the problems that be mentioned from PELT LEE and Porter’s 5 forces analysis. The first two strategic recommendations focus on adapt the Singapore developed technology, first of all, for on-line shopping, as the development of technology, NIGH tea company should start building the official on-line shops, the on-line shops not only selling the tea for the costumers, but also introduce the history of TWIG tea company to the overseas customer. The purpose to build the on-line store is to offer more convenient services.
The second step should focus on the credit card users, according to the research, Singapore credit card usage is high, each person have at least 1 credit card in their daily life, they also used to use credit card to pay the bill. Therefore, a relevant promotion is necessary for now. TWIG tea company can offer special price for the credit card users, or do some charity social actions when the customers use credit card pay the bill. The third recommendation is develop process of tea making, including the tea growing and tea preparing. Make sure the customers can enjoy the TWIG tea in a convenient way.