MGMT335: Analysis and recommendation for SATS Ltd on its International Market Expansion: International Business Report, SUSS, Singapore

1.1 Introduction

The purpose of this study was to determine the possibility of going internationalization of a Singapore-based inflight catering company, SATS Ltd. (previously known as Singapore Airport Terminal Services Limited). By, expanding and further diversifying its presence in various area within the ASIA market. Its main business of SATS includes ground-handling and inflight catering service

1.2Limitations of the Study

Considering the current pandemic of COVID-19 situation, this study may be limited due to the nature of SATS’s businessthat revolves in Ground Handling and Aviation Catering Service Industry. Importantly, with the closure of the international boarders in light to fight the spread of COVID-19, business like SATS which heavily relates to the travel industry consequently,experiencing an onslaught unpredicted trend (Travel & Tourism Economic Impact | World Travel & Tourism Council (WTTC), 2021).Therefore, all the data used for SATSwere based on pre-COVID.

1.3Methods of the Study

In this study, for us to have a deeper understanding of SATS’s potential, we have used various methodology throughout various sections of this report. For instance, in this report, we have three projects to illustrate the analysis of the company, potential markets of internationalization, the entry modes, and exit strategy.

Section 2, Project 1

We started off by deep dive and valuate the company’s goal and mission. Then using different methodology such as PESTLE to analyse the macro-environment, identify the industrial life cycle of SATS, and apply Bowman Strategic Clock and BCG matrix to analyse the company’s strategic positioning. Based on these analyses, we will provide the recommendation of the internationalization for SATS.

Section 3, Project 2

With our findings in Section 2 above, we then evaluate further the potential growth and method how could SATS develop their business further in our chosen country, Japan, and Vietnam for comparison. The analysis includes institutional homogeneity and heterogeneity analysis, production factor accessibility analysis, target segmentation, and sales potential analysis, market accessibility, and competitor analysis. Given all the analysis, we identify Japan as a good selection for SATS to start its new business.

Section 4 for Project 3

For a total overview of our recommendation, we list out the potential entry modes and justify which mode is the suitable one for SATS. The potential strategic suppliers and partners are also identified. Finally, we illustrate the financial planning and the exit strategy.