SBU Competition - Research Paper Example

As SingNet is the biggest internet provider company followed secondly by Star Hub and at third place stand M1 Net Ltd. The total broadband subscribers of Star Hub are 329,000. The broadband user of the third largest company M1 Broadband is over 10,000. The details of these competitors are given below in the table:

Name of Company

Success Factor

M1 Net Ltd (Broad Band)

Pioneer of introducing first fiber broadband, High-speed internet, and maximum bandwidth to international websites

SingNet (Broad Band)

The first one to introduce broadband connections in Singapore

SingNet Broad Band Internet

Star Hub Broad Band Internet

M1 Broad Band Internet

Market Share as of 31 March 2013

44.4 % market share is captured by SingNet internet broadband which is the market leader among the three internet broad bands (According to sustainability report of SingTel for march 2013)

36.1 % Market share is captured by Star Hub internet making it the second-largest broadband internet market leader

16% of the total market share in this particular category is owned by M1 broadband internet making it the third-largest market leader in this particular category

The share price of the stock on September 3, 2013

3.520 is the price according to the latest date on which the data was accessed. The price of the stock remained unchanged as it was the same on September 2, 2013

4.15 is the price according to the latest date on which the data was accessed. The price of the share decreased as compared to the price of September 2, 2013

3.190 is the latest price for the stock exchanged of M1, date September 3. The stock price also increased compared to the price of the last day

Revenue for the companies (as according to available financial reports)

2012:  18,825 Million

2011: 18,071 Million

2010: 16, 871 Million

2012: 2,422 Million

2011: 2,312 Million

2010: 2, 238 Million

2012: 1,076,812

2011: 1,064,896

2010: 979.2 Million

Customer base

557,000 are the total broadband internet users for the company

442,300 are the total subscribers of the broadband internet service provided by the company

173,900 are the total broadband internet subscribers for M1

Strengths

Many of the strengths that are associated with the company include:

·         The first-ever company to launch its broadband services in Singapore

·         First broadband service provider to introduce supplementary surfing

·         Being the pioneer and the largest company to hold the stake, trust of people in the service provided

Star Hub being the second market leader holds certain strengths as well including:

·         Fastest growing broadband internet service provider

·         Provides the highest speed for surfing including the fastest speed internet for downloading and uploading in Singapore

·         Provides unlimited surfing packages to make the family time fun

M1 as is the third largest leading broadband possess the following strengths:

·         Introducer of the latest technology

·         Pioneer in providing the fastest downloading speed was even needed with even in peak hours

·         Connectivity choices are customized and available according to the need and requirements of the customers

·         Faster and an easier way to access the international high bandwidth sites

Competitive Advantage

Pricing Bundles that are offered by SingNet is their competitive advantage and the factors which help them gain the highest market share in the market

Next Generation Broadband as they call it and it is one of the reasons that they gain a competitive advantage over others capturing the market with the help of their excellent marketing strategies

Relatively a new company as compared to the top two market leaders with an aim to compete against the companies with its pricing strategies

Success factors behind the leading organizations

The first one, a pioneer in their area, making a strong impact and image among customers

Max Online which the company claims to be always on is one of the key factors which enables the company to lead in the market

First to offer high-speed download of packet access data

Key Performance Indicators

Cash flows for the market leader increased according to the sources of key performance indicators

Earnings per share decreased for the company

Total assets of the company also decreased last year according to the sources

Cash flows for Star hub decreased according to the key performance indicators of last year

The company gained a higher margin on the profit after EBITDA

Net profit after taxes increased for the company

EBITDA decreased for M1

Capital expenditure, as well as cash flows, decreased for the company

Earnings per share increased for the company