Strategy Formulation & Implementation of

Sheng Siong

Table of Contents
SECTION 1: VISION AND MISSION OF SHENG SIONG.....................- 2 -
SECTION 2: EXTERNAL ENVIRONMENT – PESTEL ANALYSIS OF
SHENG SIONG...................................................................................- 3 -
SECTION 3: SWOT ANALYSIS OF SHENG SIONG..............................- 6 -
SECTION 4: STRATEGY IMPLEMENTATION OF SHENG SIONG.....................- 9 -
SECTION 5: CONCLUSION..............................................................- 11 -
REFERENCE........................................................................................- 12 -

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SECTION 1: VISION AND MISSION OF SHENG SIONG

We have two crucial aspects in strategy analysis and formulation that we must specify before
we begin our work on analyzing and developing our work. The vision statement and mission
statement are the two components that we need to define. The vision statement focuses on the
future and what the company aspires to be. The mission statement is concerned with the
present and what the organization performs. While mission and vision statements are
frequently used interchangeably in business, it is critical to have both.

Sheng Siong customers are their top priority. They are always resolute in considering their
customers' needs, preferences and motivate them to keep coming back, as they are provided a
trusted quality, competitive pricing and good services as synonymous with their brand name.
Through the value that we uphold, we aspire to be known as a retailer who is trustworthy and
sincere.

Vision & Mission

To provide value to their consumers, Sheng Siong endeavors to provide excellent products at
reasonable costs in the areas in which they operate. Other than that, Sheng Siong vision is to
be the market’s chosen store, beginning in Singapore then expanding farther ashore. Sheng
Siong chain stores are designed to offer customers both “wet and dry” shopping options,
including a diverse selection of live, fresh, and chilled products such as seafood, meat, and
vegetables, as well as packaged, processed, frozen and/or preserved food products and
general merchandise, such as toiletries and essential household products. To date, Sheng
Siong have produced over 400 goods under their ten house brands in order to provide their
consumers with excellent alternatives to national and international names at significant
savings. Aside from their brick-and-mortar approach, they also provide an online grocery
shopping platform (E-Commerce) at http://allforyou.sg, with the quickest turnaround delivery
time of four hours. Customers also have access to a wider variety of fresh products when
compared to other online grocery buying platforms. Sheng Siong also strives to be
reasonable, harmonic, responsive, accountable, and committed towards their consumers.

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SECTION 2: EXTERNAL ENVIRONMENT – PESTEL
ANALYSIS OF SHENG SIONG

Political Factor
Political factors are frequently linked to the level of action by local and national governments
in the commercial and economic environment. The nature and aims of policies are heavily
influenced by government policies and the governing structure.
 Political Stability in the existing markets
In Sheng Siong, they must handle a variety of rules in the various markets in which it
operates. Singapore and other risin nations have modified legislation in recents years,
not only regarding market access but also how companies in Retail( Department &
Discount) can operate in the local market.
 Political stability in the existing markets
Sheng Siong operates in several countries, thus rules must be developed for each
nation based on the Retail (Department & Discount) industry’s unique requirements.
Given the current surge in populism throughout the world, I believe Singapore will
see similir threads, which may contribute to increased volatility in the Singapore
market.

Economic Factor
Economic factors include interest rate, countryname's economic stage, countryname's
economic performance, inflation rate, exchange rate, consumer disposable income, labor
market circumstances, taxation rate, and so on.
 Downward pressure on consumer spending
While consumer disposable income has remained consistent , rising inequality in
society will have a detrimental influence on consumer mood and, as a result,
consumer purchasing behavior.
 Skill level of workforce in Singapore market
The human resource skill level in Singapore is moderate to high in the Services
industry. Sheng Siong may use it to not just improve services in Singapore, but also to
develop worldwide possibilities with its trained staff.

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Social Factor
Social factors such as population trends, power structures in society, women’s labor force
participation, and so on have a significant influence not only on the country’s economy but
also on workforce talent availability and consumer demand.
 Education Level in Society
Education level in society influences both work quality and income level. A higher
degree of education frequently leads to better jobs, more income, and increased
expenditure on sophisticated and aspirational things. Singapore has a high degree of
education, particularly in Sheng Siong industry. Sheng Siong might use it to
strengthen its position in Singapore.
 Demographics Trends
Sheng Siong has demographics on its side for its services items. Singapore is a young
and developing country. Sheng Siong may capitalize on this trend by catering to
varied demographics. Before developing new products, Sheng Siong’s should analyze
demographic trends and incorporate characteristics that cater to this market.

Technological Factor
Technology is rapidly altering company paradigms in a variety of industries. Some of the
technological trends influencing the macroenvironment include advances in artificial
intelligence, the use of machine learning and big data analytics to forecast consumer
behavior, the increasing prominence of platforms over service providers, and so on.
 Preparedness for 5G Related Infrastructure
Sheng Siong must maintain a careful watch on the growth and improvement of user
experience as speed and access increase. Countries all over the world are attempting
to get ready to install 5G infrastructure. Sheng Siong should analyze how prepared the
local market is to bring out the 5G connection. This has the potential to dramatically
change the customer user experience in the retail market.
 Lowering Cost of Production
New technology is rapidly lowering production and maintenance costs in the services
sector. Sheng Siong must reorganize its supply chain to increase flexibility in order to
suit both client expectations and cost structures.

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Environmental Factor
Environmental issues are quickly gaining popularity not just with consumers, but also with
regulators and policymakers. Climate change and shifting ecosystems are causing the
extinction of more than 20% of the world's species by the turn of the century.
 National and Local Environmental Standards & Regulations
National and municipal environmental policies are frequently at odds. This can assist
Sheng Siong's in a variety of decisions, including facility site, product development,
and price strategy.
 Level of Consumer Activism Regarding Environmental Concerns
Sheng Siong's needs to know the level of consumer activism concerning
environmental concerns. It will aid Sheng Siong's in both producing environmentally
friendly goods and overcoming public relations stumbling hurdles.
 Renewable Technology
Sheng Siong is also interested in renewable technologies. It can capitalize on industry
trends. Singapore is giving incentives for renewable energy investments.

Legal Factor
Legal is critical to the success of any economy's retail (department & discount) industry.
Before entering the international market, Sheng Siong Group Ltd management must consider
the following legal factors: copyright laws, discrimination laws, judicial systems, data
protection laws, intellectual property rights protection, time taken to deliver justice, bias
toward domestic players, and so on.
 Intellectual Property Rights Protection
In Singapore, intellectual property, patents, copyrights, and other IPR rights are
legally protected. How would Sheng Siong Group Ltd be affected if there is
insufficient protection? Sheng Siong's should evaluate the amount of protection that
intellectual property rights receive under the country's legal system.
 Consumer Protection Laws
Sheng Siong's requirements to know what consumer laws exist, how often they are
enforced, how authorities see consumer protection laws, and what role activist groups
play in enforcing consumer protection laws.

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SECTION 3: SWOT ANALYSIS OF SHENG SIONG

Strength
Sheng Siong's strengths are its capabilities and resources that it can use to gain a sustained
competitive edge in the marketplace. Positive characteristics of five important resources and
skills - people resources, financial resources, activities and processes, physical resources such
as land and buildings, and prior experiences and triumphs - contribute to strengths.
 Diverse Product Portfolio of Sheng Siong
Sheng Siong has delved into several industries outside of the Services industry
throughout the years, their products and brand portfolio enables them to target many
sectors of the domestic market at the same time. This has allowed the organization to
diversify its income streams beyond the Services industry and the Retail (Department
& Discount) division.
 Strong Relationship with Existing Suppliers
Sheng Siong's, as an industry incumbent, maintains excellent relationships with its
suppliers and other supply chain participants. Yi Rong Loh, Ye Jun Lee, and Marleen
Dieleman believe that the organization may expand its goods and services by using
the talents of its suppliers and supply chain partners.
 Robust Domestic Market that Sheng Siong’s Operates in
The home market in which Sheng Siong's operates is both a source of strength and a
barrier to the company's growth and innovation. According to the information
provided in the Sheng Siong Supermarket: Building and Sustaining Competitive
Advantage case study, Sheng Siong's can easily grow in its domestic market without
much innovation, but entering the international market will necessitate additional
investment in research and development. So far, the temptation for Sheng Siong's
executives has been to focus solely on the home market.

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Weakness
Sheng Siong's weaknesses are the areas, qualities, or talents that he lacks. It hinders the firm's
capacity to develop a lasting competitive edge. Weaknesses result from a lack of five
important resources and capabilities: financial resources, previous experiences and
accomplishments, activities and procedures, physical resources such as land and buildings,
and people resources.
 Customer Dissatisfaction
Despite the fact that product demand has not decreased, there remains a simmering
feeling of dissatisfaction among Sheng Siong’s customers. The reviews on numerous
online sites reflect this. Sheng Siong should concentrate on areas where it can
improve the purchasing and post-purchase experiences of its customers.
 Business Model
Even with the company’s numerous patents and copyrights, Sheng Siong's business
strategy is easily replicable. Intellectual property rights are extremely difficult to
apply in the industry in which Sheng Siong works. Intellectual Property Rights,
according to Yi Rong Loh, Ye Jun Lee, and Marleen Dieleman, are successful in
blocking same-size competition, but it is difficult to prevent start-ups from disrupting
markets at different additional levels.

Opportunities
Opportunities are macro environmental conditions and changes that Sheng Siong's may
employ to either solidify its present market position or expand further. Opportunities can
arise as a result of a variety of circumstances, including technical advancements, economic
growth, increases in consumer disposable income, changes in consumer tastes, and political
events and policy changes.
 E-Commerce and Social Media Oriented Business Models
Sheng Siong's can benefit from an e-commerce business strategy by partnering with
local suppliers and logistics providers in the worldwide market. Social media growth
may assist Sheng Siong's in lowering the cost of entering new markets and reaching
customers on a much cheaper marketing budget. Based on data and buying behavior,
it can also lead to crowdsourcing different services and consumer-oriented marketing.

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  Increasing Market Size and Consumer Preferences
The market has risen rapidly during the previous decade and a half. Consumer
preferences and tastes have evolved as a result of the entry of new consumers. This
confronts Sheng Siong with two major challenges: how to retain current clients and
how to attract new customers. Sheng Siong’s has attempted to diversify by first
utilizing different brands and then by incorporating various features based on
consumer preferences.

Threats
Threats are macro environmental elements and changes that have the potential to undermine
Sheng Siong's business strategy. Threats can arise from a variety of reasons, including an
increase in consumer disposable income, economic growth, changes in consumer tastes,
technology advancements, and political events and policy changes.
 Competitors are Catching Up with Product Development
Despite the fact that Sheng Siong is now the leader in product innovation in the retail
market. It faces severe competition from both international and domestic companies.
New entrants as a result of lowering costs and increase efficiencies. The rivals, both
local and foreign, may benefit from Sheng Siong’s low cost of contacting customers
through social media and e-commerce.
 US China Trade Relations
Sheng Siong's next phase of expansion will be centered on China. However, there is
growing strain in US-China trade ties, which might lead to protectionism, greater
friction in international commerce, and increased expenses in terms of labor and
business costs. The changing political climate, including the US-China trade war,
Brexit's influence on the European Union, and overall instability in the Middle East,
can have an impact on Sheng Siong Group Ltd's company in both the domestic and
foreign markets.

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SECTION 4: STRATEGY IMPLEMENTATION OF SHENG SIONG

Cost Leadership
The Cost Leadership strategy is one in which a company focuses on lowering the cost of
delivering products or services to customers in order to be more profitable and hence generate
shareholder value or invest in other aspects of the business strategy.
Sheng Siong might aim to be the lowest cost manufacturer in the retail business through a
cost leadership strategy. This strategy enables Sheng Siong to increase market share by
focusing on the middle class, which accounts for the majority of the overall consumer market
mix in most nations. Middle class customers place a great value on pricing, and cost
leadership is the ideal option for meeting the demands of this market sector. Sheng Siong
focuses on the affordability and accessibility of its products across the world, which leads to
significant brand recognition and sales growth, as well as a strong competitive advantage.

Differentiation Strategy
The differentiation of strategy is used by a company to differentiate its products or services
from rivals. This targeted strategy covers a wide range of products, from full product variety
to distinct characteristics inside a core product.
The strategy goal of Sheng Siong is to differentiate by incorporating innovation and meet
customer’s rising health concerns. For example, Sheng Siong has expanded its product range
after examining shifting customer tastes in order to separate itself from competitors and
broaden the scope of potential within the business. Sheng Siong has built a strong and loyal
client base via the combination of distinctiveness and cost leadership.
Sheng Siong provides a wide range of flavors to meet the diverse tastes of its customers. It
employs innovation to provide distinct enhanced services that delight consumers and boost
their preference of Sheng Siong over other brands.

Focus Strategy
Focus strategy is the strategy that encourages businesses to concentrate their resources on
increasing narrowly defined niches. Companies that use the focus strategy serve certain
market segments and gain a competitive edge through niche marketing.
Sheng Siong adopts the focus strategy in terms of both low cost and greatest value. Serving
the demands of specialized market segment at the lowest feasible price is the low cost focus

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strategy. While the best value focus strategy is used by stressing the flavor, size, and design
of the product that may best meet the wants and expectations of the consumers.

Intensive Growth Strategies

Intensive growth strategies are concerned with the creation of new goods or markets in order
to achieve corporate growth objectives. Multinational corporations, such as Sheng Siong
evaluate these strategies to comprehend how to grow consumer base through market or
product development and how to further penetrate current markets. Intensive growth strategy
assist organizations in rapidly expanding by aggressively exploring product or market
expansion opportunities.
When examining this strategy, Sheng Siong overarching goal is to optimize profitability and
widen market share in order to preserve relevant and assure long term corporate success.
Effective execution of these strategies necessitates considerable efforts on the part of the
organization, especially when management views them as a source of competitive advantage.

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SECTION 5: CONCLUSION

Sheng Siong is one of the giant firms which operating in the retail industry in Singapore.
Sheng Siong has risen to become Singapore's top supermarket retailer. This country offers
tremendous expansion potential for the organization. In a competitive business climate, the
firm must remain active while also strengthening its shortcomings by investigating various
development opportunities. Although this organization may encounter threats in the future,
good plan implementation can assist to prevent risk.
Changing isn't necessarily a terrible thing. Sheng Siong has progressed from a family
business to a listed company, from a tiny organization to a corporation, but this is only the
beginning of the future big arms in supermarket operators in the area, if not the world.
Modern management studies will assist Sheng Siong in dealing with any future concerns.
Sheng Siong's transformation should not be stopped at this time, but should continue to
improve and seek to realize its goal and vision.
As we can see that a SWOT analysis is very important for a company to look at the internal
and external factors which will affect the business. Internal elements are your advantages and
disadvantages. Threats and opportunities are examples of external influences. An external
issue is one that would exist even if your firm did not exist (for example, changes in
technology or a severe flood).

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REFERENCE

Article shared by Singapore Assignment Help

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Article shared by Sheng Siong

https://www.enterprisesg.gov.sg/-/media/esg/files/quality-and-standards/business-
excellence/IAward_Sheng_Siong_2015_Summary_Report.pdf

Article shared by Yi Rong Loh, Ye Jun Lee, Marleen Dieleman

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Article shared by Haejun.1.0

https://www.coursehero.com/file/p73nn08/MARKETING-MIX-STRATEGY-To-make-
upper-goals-come-true-Marketing-team-of-Sheng/

Article shared by Harvard Business Case Studies Solutions

http://fernfortuniversity.com/hbr/case-solutions/16898-sheng-siong-supermarket--
building-.php

Article shared by Desklib

https://desklib.com/document/25-25strategic-management-strategic/

Article shared by SWOTanalytica.com

https://swotanalytica.com/ivey/sheng-siong-supermarket-building-and-sustaining-
competitive-advantage.php

Article shared by SWOT and Porter Sheng Siong

https://phdessay.com/swot-and-porter-sheng-siong/

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