Environmental Forces Affecting SMRT Buses: Macro and Micro Factors

There are two types of environmental forces on SMRT buses, Macroenvironmental and Microenvironmental forces. For Macroenvironmental forces, the factors are Demographic, Economic, Natural, Technological, Political, Social and Cultural forces.

For Microenvironmental forces, the factors are the company itself, suppliers, Marketing intermediaries, competitors, Publics and customers affect its ability to serve its customers. However, I will only be covering 2 of each Microenvironmental and Macroenvironmental forces. Introduction SMRT first started off in the year 1983, offering services such as Trains, Buses, and Taxis. From 1983 to 2003, SMRT buses were 2 different companies, namely, Trans Island Bus Services (TIBS) and SMRT. To increase competition of customers between local buses, 16 SBS services were given to TIBS (SMRT before merger).

Operation of bus services in the north-east corridor was also offered to TIBS (SMRT before merger). In 1999, when TIBS (SMRT before merger) lost the offer to operate the north east line, TIBS and SMRT decided to merge to increase rails and buses synergy. SMRT then merged with TIBS in 2004. Microenvironmental Forces SMRT buses’ only has one competitor, the SBS Transit. SBS Transit monopolised the scheduled bus market share until SMRT was established in 1982. Now SBS Transit has about 265 bus services and daily ridership of over 2 million passengers, equivalent to 75% of scheduled bus market share.

Order custom essay Environmental Forces Affecting SMRT Buses: Macro and Micro Factors with free plagiarism report

450+ experts on 30 subjects Starting from 3 hours delivery

Get Essay Help

Compared to SMRT, with a daily ridership of over 730000 passengers, which is equivalent to 25% of scheduled bus market share. SMRT needs to observe their competitor to see what they are doing, find a way to counter their actions and then create a better competitive advantage. In doing so, SMRT can increase their scheduled bus market share and eventually monopolise the market. The other microenvironmental force affecting SMRT buses is their customers. To meet customers’ needs, passengers are constantly being observed. In the year 2010, SMRT introduced a new bus that is both elderly and wheelchair-friendly.

The buses have steps that are low which allows the use of wheelchairs and at the same time enables swift and ease movement for passengers when moving to the rear of the bus. Also, the bus is quieter and vibrates lesser compared to buses used previously. This allows passengers to experience a smooth and comfortable ride when travelling long distances on buses. To create better competitive advantage over their competitors, SMRT opens feedback from passengers, wanting to know passengers’ opinions, so as to improve their bus services. Macroenvironmental Forces

One of the Macroenvironmental forces affecting SMRT buses is the Social force. To make SMRT greener, the new bus as mentioned in the Microenvironmental force, are almost one ton lighter, compared to the older buses used. This improves both mileage and fuel efficiency by about 7%. This new bus has a passenger capacity of about 80 passengers and 1 passenger-in-wheelchair, which is almost the same as older buses. Also, harmful gases like Nitrous Oxide are converted to mostly Nitrogen and water vapour with the BlueTec® SCR engine, thus making emission from the buses safer and cleaner.

With all these new features, there will be lesser pollution, and thus creating a better image for SMRT. The other Macroenvironmental force affecting SMRT buses is the Economic force. Due to the recession in the year 2008, passenger’s spending power and patterns are affected. In September 2008, although in terms of percentage, the bus ridership is stable at 64%. However, the monthly bus ridership has decreased by more than 70000, from 23,788,000 passengers to 23,714,000 passengers. Even though there is a drop in passengers, SMRT is earning profits more than before the recession.

Conclusion

In conclusion, Microenvironmental and Macro environmental forces can affect a company in many ways. It may affect the company in both positive and negative ways. For example, from above, the economic force, during the recession even though there were lesser passengers, the profits earned still increased, but, if the number of passengers did not decrease, the profit will be higher. However, for the microenvironmental force, competitor, it may be a good and a bad thing. When there is competition, companies tend to improve their services to be better than each other. In a way, this creates a competitive advantage for the company that can meet more customers’ needs.

References

SGWiki (2011 February 26) The Year In Buses, Singapore, SGWiki (http://sgwiki. com/wiki/The_Year_in_Buses) (25/10/2011, 12:38) SBS (No Date) Bus Services, Singapore SBS (http://www. sbstransit. com. sg/transport/trpt_bus_overview. aspx) (25/10/2011, 12:41)

SMRT Corporation Ltd(9 March 2010), SMRT INTRODUCES SOUTHEAST ASIA’S FIRST FULL LOW FLOOR EURO 5 BUS - PROVIDING GREATER ACCESSIBILITY FOR PASSENGERS, Singapore, SMRT Corp Ltd (http://www. mrt. com. sg/Upload/201031010315179993. pdf)( 23/10/2011, 20:38) Abhijit (2 November 2009, Monday), Six rail journeys for every 10 bus rides in Singapore, Singapore, PressRun (http://www. pressrun. net/weblog/2009/11/six-rail-journeys-for-every-10-bus-rides-in-singapore. html) (24/10/2011, 21:11)

Seraphina Wee (22 October 2009), Mass Media Continues to Perform in Times of Downturn: NielsenConsumption of newspapers, television, cable, magazines, and radion have remained stable while the Internet saw considerable growth,

Don't let plagiarism ruin your grade

Run a free check or have your essay done for you

Check my essay Hire Writer