Termasek Pest Analysis

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Political There are 49383 shareholders registered in the SMRT in the 31 March 2015. But the major shareholder of SMRT is Termasek Holdings. Termasek Holdings is owned by the Singapore Government. Termasek Holdings hold about 54.3% of SMRT shares (SMRT, 2016). Besides, the Singapore’s government encourages public to take the public transport. The reason is to reduce the traffic jamming, injuries and respiratory troubles. The Singapore’s government has made public transport clean, punctual, convenient and affordable. The Land Transport Authority (LTA) had combined the MRT stations with the shopping centers (Singapore Budget, 2012). So, this giving the opportunity to the public to ride and at the same time they can do their purchase on shopping…show more content…
So, the degree of dependency of customers is high due to the cheap fare price. Moreover, the public transport is the essential things in the life, the customers cannot avoid to take the public transport although there is increasing in the fare price. In addition, the switching cost of buyers is high because the buyers must spend a lot of money to buy the car. Bargaining Power of Suppliers The bargaining power of suppliers is low. Since SMRT being the market leader in the train industry and it is under the government, they have stronger leverage and purchasing power. So, the SMRT has a lot of choices to choose the suppliers who offer the lowest cost to buy the quality equipment of trains. Threat of Substitute Products or Services The threat of substitute services is low. The various modes of public transport are substitutes to each other, this mean that if the consumer did not want to take train, the substitute services are bus and taxis only. This help they differentiating themselves through trade-offs between cost, speed, connectivity, convenience, reliability and…show more content…
Singapore Bus Service (SBS) was starting formed with the merger of 3 private bus companies in 1973. In 2001, the company name is changed to SBS Transit to give an index to its status as a bus and rail operator. The vision of SBS is moving people in a safe, trustworthy and affordable way. The mission of SBS is to accomplish excellence for our customers, employees, shareholders and community. SBS Transit is the operator of the North East Line (NEL) from 2003 and Downtown Line from 2013. The North East Line is the first fully underground and automated rapid transit line with the line 20 km long and 16 stations. The Downtown Line (DTL) with 34 stations, the 42 km-long line and will be the world's longest fully underground and automated rapid transit line if it is completed in 2017 (Wikipedia,

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