PESTEL Analysis
Marina Bay Sands is an integrated resort situated in Downtown core of Singapore, in front of Marina Bay. The resort significantly opened in the business year 2010 on 27th April as a soft opening and officially it opened on 23rd June 2010. The CEO of the resort is George Tanasijevich. In the business year 2010, the resort was the world’s most expensive casino property standing alone for around S$8 billion incorporating the land cost. It has 2,561 numbers of rooms and 15,000 mt.sq of gaming space. The owner of the Royal resort is Las Vegas Sands Corp. The signature attractions of this resort are Wonder-Full, Sands SkyPark, Artscience Museum, the shoppes at Marina Bay Sands, Bay Floral and many other relevant spots that attract millions of potential clients all over the world. Las Vegas Sands invested around S$3.85 billion in the project Marina Bay Sands; however, the increasing cost of raw materials and labor charge raised the investment by an addition of S$1.2 billion. By the end of July 2009, Sheldon Adelson invested around S$8.0 billion towards the development of the infrastructure. CDL’s CEO, Kwek Leng Beng took a huge part in the accomplishment of the project by making a partnership with Las Vegas sand with 15% equity stake. Currently, the resort is making a huge success in its business.
P- Political
Singapore Workforce Development Agency or WDA has executed the Go the Extra Mile for Service or GEMS development planning to energize better administration. STB has set an objective to accomplish visitor entry to 17million by the business year 2015. Lodging execution of Marina Bay Sands reflects visitor landings; consequently, with a specific end goal to accomplish, STB’s objective administration plays an essential calculate enhancing in execution (Chon, 2013). Another arrangement by STB is to concentrate endeavors on further creating client portions.
E- Economic
Financially, clients have an increment in spending power which is a positive impact towards the resort Marina Bay Sands. Clients prefer to pay for services and offers that are being offered by the resort which is needed to run the business successfully. The potential growth of visitors towards the hotel is consistently increasing in both locally and particularly worldwide visitors (Lockyer, 2013). Locally, more employments are being made due to the solid and stable economy development in the business year 2015 which creates a positive impact on the resort Marina Bay Sands.
S- Social
Porter’s Five Forces
Clients way of life are additionally enhancing, in this manner with regards to the administration of Marina Bay Sands offering them just with the starters of comfort level will not satisfy them, as they would expect esteem included administrations. With a quick moving pace, effectiveness is another critical prerequisite in administration conveyance for the resort (Mok, Sparks & Kadampully, 2013). In the view of tourism industry respecting countless guests, worldwide administration principles of offering luxurious stay and providing the needs and demands of guests are expected from the resort as this would significantly increase their financial status.
T- Technological
Innovatively, Singapore has a propel innovation foundation which is 3G innovation accessible, Wireless Internet and well-scope telecom administrations consistently interfacing the general population inside the island as well as around the world. With these instruments accessible it additionally bolsters proficiency of work among the employees (Ashrafi et al. 2013). In the current era, technological enhancement is required for this kind of industry as the needs and demands of customers’ changes with time and technological advancement.
E- Environmental
The Ministry of the Anti-Pollution Unit and Environment works tenaciously to keep up air quality and other ecological components. Contamination of water and land from lodging services is the key issue in Singapore’s urban ranges. The Water Pollution Control and Drainage Act controls water quality. One of the significant worries for Singaporeans is that the nation does not have enough water to bolster their requirements. Contamination from the modern results in various environmental problems as well as the scarcity of water rises significantly (Benavides-Velasco, Quintana-García & Marchante-Lara, 2014). As there is an absence of water assets, Singapore is reliant on Malaysian provided water. A nearby brand called NE Water supplies sewage water in the wake of filtering it utilizing double film. More answers for this issue are required. Hence, the resort Marina Bay Sands must adhere to the environmental laws for better positioning in the market.
L- Legal
The administration believes that development of electronic business relies on upon straightforward and market ideal enactments and directions. Certain legitimate, administrative and business settings are expected to bolster hotel industry advancement and financial development. The online business program was propelled in 1996. The point was to build up the internet business administrations. Singapore has presented some online business arrangement activities (Chan & Lam, 2013). There are cross-fringe internet business laws and approaches. Some fundamental legitimate and specialized frameworks to bolster secure online business were accessible since 1998. Some of them are Electronic Transactions Act, Tax Issues, Intellectual Property Rights, and Content Regulation, Amendments to the Evidence Act and Import and Export Procedures. This taxes and regulations have made Marina Bay Sands in many restrictions which create a huge impact in its business.
Threat of New Entrants-
Marina Bay Sands is a highly rated hotel in Singapore and is significantly dominated by very few rivals in terms of other large international hotel company. Therefore, it is tough for new entrants to enter in this competitive market where the company Marina Bay Sands and other has already established a high rated ranking and also the new entrants require huge capital investment to capture the market eventually (Chan & Guillet, 2011). Hence, the entrant of the new hotel is very low in the Singapore in terms of the hotel industry. If anyone does, it will not create much impact on the business of Marina Bay Sands as this company has gained its position in the competitive market with its high standards of service delivery to its customers.
Bargaining Power of Suppliers-
The bargaining power of suppliers is quite weak in terms of Marina Bay Sands as in the field of the hotel industry, lots of manpower is required for running their business successfully. The economic condition of Singapore is strong enough to provide manpower services. Each of the employees in Marina Bay Sands receives income every month with an additional bonus per year (Chand, 2010). They even have the power to negotiate the salary and whenever they feel they can resign their post. Hence, the main supplier of Marina Bay Sands is its manpower which focuses mainly on delivering efficient customer service.
Bargaining Power of Customers-
The bargaining power of customers in quite high as there are various other hotels that offer the same services. Hence, it typically depends upon the location which is moderate in terms of Marina Bay Sands. However, the competitors have considerably increased which leads to increase in bargaining power of customers. This, in turn, will lead the company to form different promotional activities, pricing strategy and other means that will relatively attract potential customers. Customers always tend to go for services that are affordable and serve quality services (Punitha & Rasdi, 2013). Therefore, to retain in the market the company needs to strategize its marketing activities for gaining more customers.
Threat of Substitutes-
In current trend, the market of Bed and Breakfast as well as Cottage Inn is considerably increasing and are widely acceptable by the customers as this kind of services are of reasonable price as compared to resorts like Marina Bay Sands. The reason behind this increase in cottages and B&B is because the customers need small and clean needs which can be affordable which directly reduces the investment costs (del Mar Alonso-Almeida & Bremser, 2013). Therefore, the alternative for resorts is considerably growing in customers which create a higher threat of substitutes. Hence, the company Marina Bay Sands must formulate new strategies that will attract customers more than the other substitutes like cottages and B&B.
Degree of Rivalry-
Aggressive promotion and pricing strategies can occur due to increase rivalry among the competitors for gaining more benefits and attain more potential customers (Sadi & Bartels, 1997). In terms of the hotel industry, the switching costs of customers are relatively low and they can switch hotels at any time which creates a huge risk for Marina Bay Sands in terms of degree rivalry.
1st Strategy-
The operational methodology is required for the resort, Marina Bay Sands. It is extremely basic to discover organizations where the promoting office called attempts to deliver indexes and leaflets, planning participation at fairs, sustain website page substance and other relevant promotional strategy. The first attempt must be the key concentration and that must concentrate on early endeavors (Han, 2013). A legitimate analysis of the rivalry market, clients, inner and setting, must be accurately analysed with the best possibility of accomplishment, differential situating can be transmitted with the assets accessible and that outcomes in a solid favourable position, a determination effective channel with a evaluating arrangement which compensates the channel and permit maintainable profitability (Ubeda-García et al. 2013). The company must serve the clients with the efficient administrative structure for gaining competitive advantages. It must cultivate a vital culture in the lodging business and accomplish the services that are not delivered to the customers yet as well as everything that can accomplish better business execution.
2nd Strategy-
Client orientation is one of the basic requirements for enhancing the business administration and furthermore showcasing. There is an accord that the lodging business should be client arranged. Marina Bay Sands is known for its accommodation and nature of administration, so if being arranged or be a piece of a system, the resorts and lodging services provided by this company must be benefitted to both customers as well as the company Marin Bay Sand (Han & Hwang, 2013). Without the satisfaction and efficient service delivery, the resort can never run its business successfully in Singapore as the competition in this industry is huge.
3rd Strategy-
Digitization is another essential key that will bring success to the company Marina Bay Sands. In the present era, the usage of internet services has been spread widely among customers. This has created a huge impact in every industry specifically hospitality and tourism industry. Customers prefer to book their rooms via an online platform and compare the services offered by each hotel (Li et al. 2013). Therefore, the Marina Bay Sands must implement a successful strategy that will significantly gain more customers as well as provide efficient services at reasonable rate. The strategy must be made based on the demographic factors as well as market segmentation as the needs and demands of each customer are different. Promoting the brand via online platform is needed for gaining competitive advantage.
4th Strategy-
Legislative rules are an important aspect of running the business successfully. In Singapore, various taxation laws and trade policies, as well as anti-pollution laws, exist. Therefore, it becomes tough for Marina Bay Sands to run its business. However, the company must focus on using environment-friendly technologies while providing quality services to its customers. The laws and rules provided by the government must be followed accordingly for gaining competitive as well as reputation in the market (Melissen, 2013).
Conclusion
Singapore’s without debasement and stable government are the most productive government in the all Asian nations. Facilitated commerce concurrences with Taiwan and China additionally make it conceivable to broaden the business markets for Marina Bay Sands. Financial and exchange administrations have, likewise, experienced substantial surpluses. Singapore has an extremely great condition for business being one of the real exchanging parts of the world. The government is focusing on waste administration and natural preservation. The level of profitability continued falling in Singapore after 1980 and worldwide subsidence has additionally made an impact the economy. Bring down Birth rate and maturing populace are testing elements. For innovative work part, there is insufficient money related bolster so in the aggressive time; it is a major hazard. Government superfluous interruption in legal is disabling the legal flexibility. However, this resort is significantly running a successful business by following the legislative regulations as well as by implementing advanced technology in its business for satisfying potential clients. The climatic changes in Singapore critically affect the business in hotel industry which is a major issue for this resort. The strategic management recommendations that have been recommended in the above sections must be followed significantly by Marina Bay Sands for overcoming all the macro factors that are affecting its business.
Reference list
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marinabaysands.com 2017. Singapore Hotel with Infinity Pool – Marina Bay Sands. Marinabaysands.com. Retrieved 26 May 2017, from https://www.marinabaysands.com/#0OvT1KqgJdROsAWA.97
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