SMRT Pestel Analysis Essay

1009 Words 5 Pages
Introduction
SMRT is Singapore premiere multi-model land transport provider. It provides service such as rail, bus and taxi operation, advertising and engineering services. SMRT corporation ltd was incorporated on 6 March 2000 and was listed on the Singapore Exchange on 26 July 2000(Our business.2016).
The SMRT main source of revenue comes from the Mass Rapid Transit (MRT) and Light rail transit, as it has a network of 142 stations across the island and is still under expansion as it is expected to have a rail network that will reach around 360 km in 2030, higher than Tokyo today. The MRT and LRT is the most popular mode of transport in Singapore with over 2 million passengers per day ( MRT & LRT transit. October 9, 2015). In addition SMRT
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The Pestel analysis is a framework or a tool that’s use by marketers to identify key external macro-environmental factors which may influence the organization and provide a bird’s eye view from many different angles of the environment.
Political factors
Political factors are the amount of government intervention in the economy, ranging from political stability or instability, government policy, labour law, taxes, trade restriction and so on.
In Singapore government encourages the public to take public transport in order to reduce traffic in congestion. The Land transport authority (LTA) is integrating bus station and MRT station with shopping malls nearby to let public to do their purchase in an effort to reduce excessive traveling. (George SUN and SAM Peng Yew. May 1, 2015).
SMRT is currently suffering from a lot of uncertainty because of its biggest shareholders the Temasek holding private limited investment company is owned by the Government of Singapore, has recently decided to buyout of the Singapore rail operation, this will force SMRT in disposing of its rail assets to the LTA for close to $1 billion and SMRT will have to pay licence fee for the rights to operate the lines starting from Oct 1 2016. (Chia Yan Min and Marissa Lee. July 21,
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Singapore’s expending economy demands more workforce which Singapore population are unable to provide due to its shrinking population (“Singapore: demand,”. November 12, 2012). So in order to fulfil those demands more and more foreigner worker are hired to work in Singapore, which has ranked Singapore one of the top ten countries for Foreign direct investment (FDI) index. With the increasing foreign population it has created a greater demand for a cheaper form of transport, with increase ridership SMRT will benefit from this positively (“Singapore Breaks,” November 12, 2012).
Social Factors
Social factors represent the social culture that the organization operates in, which involve the shared belief and attitude of the populations with concerning factors such as age distribution, literacy rate, health consciousness, social classes, living conditions and

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