Pestle Analysis for Singapore Supermarket Essay Example

Singapore Authority will consider application for Permanent Residency or Long-Term Visa Pass to high net worth foreign individuals or investors under the Global Investor Programme. These high net worth individuals are likely to invest in commercial properties in Singapore, which will contribute to the increasing rental prices in Singapore.

* The policies put forth and enforced by the government provide a conducive and secure political environment from SSG to embark and fully commit to a e-commerce expansion plan. * The cost of rental space is one of the major overhead costs for brick and mortar operations especially in Singapore. However, in the short term or in the long term, rental prices for commercial properties will tend to increase. * For Sheng Xiong to have a ubiquitous presence whilst saving costs for rental or from expanding their brick and mortar stores, they have to reach out to more consumers through implementing an e-commerce portal.

* Demographic studies suggest that Singapore will have an increasingly ageing population with a definite trend towards a declining population (Today, 2011). Older people tend to eat less and are less likely to travel to supermarkets to shop compared with the younger generation. Although internet literacy level for those over the age of 65 years is low, it is highly likely as the years pass on that we will increasingly arrive at a demographic mix of people who are internet-savvy and are used to or open to the idea of transacting online. * Consumers are becoming more and more aware of health issues and having an ageing population, the attention and focus placed by the government on eating healthily is

even greater.

* Singapore is an extremely small country with a high level of population density and internet infrastructure penetration among residents. However the costs of owning a car and transport are substantially higher than other countries, hence customers often have to use public transportation for their shopping. * Singapore’s logistics services industry has exhibited high rates of IT adoption, and its operational efficiencies are among the highest in the world (Wonget al., 1996). By most indicators, Singapore has also achieved among the highest rates of penetration of ICT and Internet usage in Asia, reaching levels comparable to the United States and Scandinavian countries in some cases.

* Shopping online on a one-stop shop for your daily necessities and groceries will provide more convenience for people in general and more importantly the elderly, who have less energy to shop outside at physical stores. Providing a timely delivery service together with an accommodating range of products beyond just food and beverage could prove very lucrative by tapping into a potentially new market. We can promote "healthy options" or organic variants for food categories and offer discounts to cater to and target the health conscious segment of the market. * E-grocery shopping will become an increasingly attractive option for those without cars due to its sheer convenience and the increasing proliferation of the internet among general consumers.

* Corporate social responsibility is one of the key agendas in the government's efforts to brand our country as 'Sustainable Singapore'. Sustainable development for Singapore moving forward together as an individual or a company is defined as: * As efficient: we develop with less resources and waste

* As clean: we develop without polluting our environment.

* As green: we develop while preserving greenery, waterways and our natural heritage * Environmentalism as a global movement and a state of social awareness has been steadily growing and is actively promoted as part of all government agendas in most developing and developed countries. This results in growing awareness among the people from an early age of the key global green issues such as:

* Global warming

* Conservation of resources and energy * Sustainable living and working. * What can Sheng Siong Group do to contribute to the sustainable development initiative of Singapore and why should SSG participate? This offers an excellent opportunity for the group to brand and market itself as being eco-friendly or having corporate social responsibility through the propagation of 'plastic bag free' home delivery to all customers when they shop for e-groceries. Furthermore, it pays to "go green" as companies save money when they use less energy and water and reduce unnecessary packaging.”