Sainsbury’s Supermarket LTD PESTLE Analysis  Singapore Essay Sample

The supermarkets are a big part of our everyday life and Sainsbury’s is a big name in this sector. As the Sainsbury’s Supermarket launched themselves in the market of Singapore city-state, we will analyze Singapore’s supermarket sector using PESTLE analysis.

On top of that, this will give us a glimpse of the market situation and how the factors may affect Sainsbury’s performance.

We will go through all the different aspects and factors concerning the PESTLE analysis of the Singapore market and reach a conclusion.

What is Sainsbury’s Supermarket LTD?

Sainsbury’s Supermarket is a Supermarket chain; it has its headquarters in London. The supermarket chain was founded by John James Sainsbury in the year 1869 in London, England.

Also it went on to become one of the largest supermarket chains in the world and the second-largest supermarket chain in England.

Sainsbury’s Supermarket is spread across 70 countries and 1,428 Supermarkets and convenience stores offering 12,000 Sainsbury’s branded products. It provides both online and walk-in supermarket services to its customers.

Sainsbury’s Supermarket LTD in Singapore

Sainsbury’s Supermarket entered the market of Singapore in August 2018 partnering with local online supermarket Redmart.

It offers 320 exclusive Sainsbury’s products to shoppers of Singapore.

Furthermore, it brings five most popular ranges to retailer in Singapore which is:

1. By Sainsbury’s, the core food range.
2. So Organic, the food from farms and producers that practice high animal welfare standards.
3. Deliciously FreeFrom, products free from gluten, wheat, milk, egg, nut, and soya.
4. Taste the Difference, the premium food range.
5. Sainsbury’s Little Ones, a dedicated baby and toddler range.

Pestle analysis

What is Pestle analysis?

Pestle analysis is a concept of marketing. It is used as a tool to study the environment a company or organization is working or is planning to enter or introduce a new product.

Factors

There are six factors that concern the PESTLE analysis i.e. Political, Social, Economic, Technological, Legal, and Environmental. We will discuss each one briefly below.

Political

There are various political factors that may affect Sainsbury’s Supermarket in the market of Singapore.

 Low Corruption government

The country enjoys a low corruption environment and has low political risk. In fact, the Political and Economic Risk Consultancy (PERC) says that Singapore has the lowest political risk across the continent.

Government ideology 

Singapore government inspired by Westminster model. The main ideologies of the ruling party are multiracialism, Asian values, meritocracy, and pragmatism.

No foreign worker

Retail markets in Singapore are facing a shortage of workforce as Government does not allow the hiring of foreign employees.

There is no minimum wage but the government strictly opposes slave and forced labor.

Economic

The factors that may affect the market from the economical perspective are:

FDI (Foreign direct investment)

Singapore allows 100% foreign direct investment i.e. an organization operating in Singapore are allowed to receive investments from a foreign source without any limitations from the government.

Easy application system 

Singapore government offers a business-friendly computerized system through which one can register their company and properties in online mode.

It is one big advantage and saves time and money.

Economic condition

Singapore has a strong economy and a high per capita income so people can easily afford to shop in supermarkets.

Loan and interest

In a business scenario, borrowing money in Singapore is easier as compared to other countries, and that too on interest as low as 0.01%.

Competition

Singapore has a high competition market with other supermarket players like NTUC Fairprice and TESCO partnership, Cold Storage, Giant, and Amazon Prime having a strong foothold in the market of Singapore.

Labor

Within the past decade, there has been seen a rise in labor cost in Singapore as government inspires High wages to avoid corruption among the citizen.

Social

Now we will discuss some social and cultural factors that may affect business in the Singapore marketplace:

Workforce 

The current population of Singapore is 5.7 million and the country has seen a rise in the workforce over the past decade. Country is formed of 4 ethical groups and all are considered important parts of society.

Literacy

The city-state of Singapore has a quite high literacy rate of 91.6% and there is a larger number of skilled workers available.

Social values and living standard

The citizens of Singapore respect a hierarchal relation in society and demand respect between the employee and the employer.

Singaporeans also have high living standards as compared to other Asian countries.

Technological

The technological factors that may concern the businesses are:

E-commerce

Singapore has the highest penetration of ICT and the highest internet usage in Asia.

Online shopping is quite famous among the citizens even in the case of groceries and daily requirements as service have been around for more than decades.

Government policies   

The electronic transactions act (passed in July 1998) by the government provides secure electronic transactions in stores and other places.

E-business industry development scheme (eBIDS)

As we know Singapore is a huge e-commerce hub, eBIDS is a government initiative to help the business grow and government also provides special subsidies to the business.

Legal

The laws and regulations that might affect business in Singapore:

Equality

The government of Singapore provides equal rights and protection to all businesses foreign or local and helps them grow.

There was a set of regulations launched by the government in order for the smooth working of business i.e. Electronic Transactions Act, Intellectual Property Rights, Amendments to the Evidence Act, Content Regulation, Tax Issues, and Import and Export Procedures.

Environmental

The environmental factors that affect businesses are:

Sustainable Singapore

Singapore has lost 30% of its mangrove forest and has many endangered species.

Moreover, the Ministry of the Environment and Anti-Pollution Unit has introduced a number of regulations and laws in order to control pollution of the environment and maintain a level of clean water as the water shortage is one of the major issues of Singapore.

Conclusion

So this was the pestle analysis of Sainsbury’s in the market of Singapore. We went through the various factors that affect a company in the market some positively and some in a negative manner.

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