2.1. Political / Legal
FNN operates out of Singapore and has enjoyed a stable and low risk political environment that the country has provided through the years. In the Political and Economic Risk Consultancy (PERC) report, it states that the country enjoys the lowest political risk in the continent (Cpibgovsg, 2018).
The low risk political environment is largely due to a significant emphasis on the rule of law, ensuring that businesses of all nature feel secure locating and investing in Singapore (Claire huang, 2018). Stringent Intellectual Property (IP) laws, with Singapore ranking fourth globally and first in Asia, help to further burnish the business friendly reputation that Singapore enjoys.
With political stability and taking advantage of Singapore’s centralised location in the Asia Pacific (APAC) region, her economy has flourished to the extend that it is now a financial hub and generates more local business opportunities (Nafis alam, 2015).
Gross Domestic Product (GDP) nearly doubled from 2000 to 2010, rising fromET1 S$163 billion to S$304 billion. Real GDP per capita also rose rapidly at a compounded rate of nearly 12% p.a., while inflation and unemployment rates averaged less than 2% p.a. and 3% p.a. respectively during this period (Reading room, 2018).
With the economic front taken care of, there is now an opportunity to strengthen the fabric of the nation through sports and sporting experiences. As envisioned under the 2030 blueprint for sports, it calls on building a vibrant sporting culture which is making an impact, with the weekly sports participation rate increasing from 42% in 2011 to above 60% in recent years. The number of running events (from fun runs up to marathons) locally has increased over the years (Mccygovsg, 2018), together with the many other world-class sporting events that are hosted in Singapore (Visitsingaporecom, 2018).
Looking forward, with increased income and with increased sporting events, there will be increased potential opportunities and sales revenue for 100Plus.
Maslow’s hierarchy of needs indicates that for any human being or society, Physical and Environmental dimensions have to be met before they progress on to the Sociocultural aspects.
For Singapore, given that it has provided for her citizens on the environmental dimension, she can now focus on the social front.
Singapore today has 11.10% of adults (aged 18 -69) who are diabetic. Every 3 in 10 above age 60 have diabetes (Channelnewsasiacom, 2018). The Government has sounded the call for a change in mentality towards healthy living and has encouraged its citizens to have regular exercise, which is something as simple as incorporating more walking in their daily routine.
The Health Promotion Board (HPB) answered that call with a holistic approach – this includes keeping your body healthy while maintaining a balanced diet and having regular screening. Various activities have been organised to encourage Singaporeans to exercise and remain healthy. Since June 2014, some 62 sporting events have been held at the Sports Hub, with close to 700,000 in attendance across all venues. More than 46,000 participants have joined in the community sporting activities (Mccygovsg, 2018) as well.
With the change in attitude towards healthy living, supported by national initiatives championed by HPB and Ministry of Health (MOH) – this bodes well for 100Plus as there is a potential opportunity to introduce a new product into the Singapore market.
AsET2 part of the Smart Nation journey, digital technology has been utilised by the Government actively to better serve the public (Smartnationsg, 2018). One of which is cashless payments, which was revisited in the National Day Rally 2017 by Singapore’s Prime Minister (pmogov, 2018).
Observing this trend, FNN has improved their vending machines by adding on the feature of cashless payment using NETS Flash Pay or EZ-Link. With a wider payment acceptance range, it will improve the convenience of buying a 100Plus product and increase repeated sales. Apart from the convenience, consumers will feel lesser of the ‘spending pain’ since they do not see their money being taken physically (Talk-businesscouk, 2018). This psychological advantage greatly benefits FNN in terms of increase in incremental sales revenue per transaction.