BM0007: Singapore’s Telecommunication Wars – A Race to the Bottom, demonstrate their understanding and application of the module concepts which include demand & supply: Microeconomics Assignment, NYP, Singapore

Assignment Outline

The assignment is designed for learners to demonstrate their understanding and application of the module concepts which include demand & supply, elasticities, production factors & costs and market structures. It provides the
learners a first-hand experience of applying the concepts to analyse and solve a realeconomic problem.

Learning Outcomes

After the completion of this assignment, learners will be able to:

a) Explain the concepts of demand, supply and elasticity concepts pertaining to a case based on the local telecommunication retail market.

b) Apply the concepts of production factors and cost to evaluate the production issues for a telecommunication retail firm.

c) Analyse the market competition among the telecommunication retail firms using the concepts of market structures.

3. Requirements

a) This is an individual written report assignment. Please read the case in Appendix 1 and submit a report based on the requirements stated.

b) You are to relate and apply relevant economic concepts and theories from the various topics in the module to explain the case effectively. Appropriate use of graphical analysis in the report are expected.

Case Study

Singapore’s Telecommunication Wars – A Race to the Bottom?

For mobile service providers in Singapore, there’s nothing usual about “business as usual”. From the excitement of the 3G deployment in the early 2000s to the imminent arrival of 5G today, the only constant for telcos has been a never-ending race to win new customers and keep existing customers
happy in an increasingly saturated marketplace.

Despite an already high local mobile penetration rate of 148.2 percent in 2020, a record total number of service providers today are vying for their slice of the subscription pie, from incumbent brands to new upstart mobile virtual network operators (MVNOs).

To win customers over, providers have been slashing prices and relying on competitive pricing strategies as a key differentiating factor. Is simply engaging in price wars the way forward for telcos and MVNOs in this current landscape?

“We believe in competitive pricing, and our mobile plans reflect that philosophy. However, a cutthroat price war is nothing, but a race to the bottom,” says Lawrence Chan, managing director, MyRepublic Singapore.

How does MyRepublic continue to deliver value to customers in this competitive landscape? The brand chalks it down to three key factors: trust, service and innovation.

Earning trust goes beyond offering attractive pricing models. For brands, this means being able to relate to their audiences through their brand voice or marketing strategy. MyRepublic’s recent brand refresh emphasised its efforts to differentiate itself with a stronger focus on customer-driven service
offerings.

Beyond just a transactional exchange of services, customers today regard quality service as an essential part of the relationship. Customers’ understanding and perception of good service has continually evolved, and today, they are not just comparing you with your competitors. They are
comparing your level of customer service with every other company they interact with.

MyRepublic understands that on an intrinsic level. Rather than compete based on price, it offers premium services that delight customers and enhances brand loyalty, such as regular mobile data boosts, attractive broadband re-contract offers as well as regular giveaway contests for MyRepublic
customers.

Steve Jobs famously said: “People don’t know what they want until you show it to them.” Being able to anticipate customers’ needs, and innovating products and services to fill the perceived gaps in the market has been crucial to MyRepublic’s success.

In sum, MyRepublic asserts that today’s businesses can no longer rely on yesterday’s tactics to deal with tomorrow’s challenges. Service providers, too, will have to adapt to the ever-changing landscape and not depend solely on tired price wars to win customers.

While competitive prices are necessary to provide value-for-money services, telcos need to look beyond prices and adjust their marketing strategies to understand and connect with their customers.