Strategic Analysis on City Development Limited, Singapore

5165 words 21 pages
Table of Contents
1. Executive Summary…….………………………………………………………………………………………………2
2. Analysis of External General and Industry Environment……………………………………………. 3
Porter’s Five Forces…………………………………………………………………………………………………….3
PESTEL Analysis……………………………………………………………………………………..……………………4
External Factor Analysis Summary (EFAS)…………………………………………………………….…....5
3. Internal Analysis of the Company………………………………………………………….……………………6
Internal Factor Analysis Summary (IFAS)………………………………………………….…………………8
4. Assessment of Company Performance………………………………………………..………………………9
Financial Ratio Analysis………………………………………………………………………………………………..9
5. Recommendation of Strategies…………………………………………………………………………………15
TOWS Matrix………………………………………………………………………………………………………………15
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Hence, this posses high threat for the company.
Rivalry An oligopolistic market exists in the real estate business. In Singapore there are approximately 25 different property developers out of which the main rivals are Capital Land, Keppel Land, JTC International, and Allgreen Properties. The intensity of rivalry in the real estate industry is very high.
Bargaining Power –Buyers Bargaining power of customers is very high as there is huge pool of options in front of them of the property developers to choose from to buy either a condominium or an office space. This in fact is also another threat for CDL.
Bargaining Power –Suppliers Manufacturing costs of properties have accelerated tremendously, and as such the suppliers have gained bargaining power to make themselves the price- makers. Construction costs in Singapore are even higher than those of Dubai or Hong Kong. As such we can say that the bargaining power of sellers is very high.

PESTEL ANALYSIS
POLITICAL
Government stability and friendliness towards FDI’s in Singapore, invites lot of multinationals to come here, and as such CDL can anticipate high demands for Grade ‘A’ properties in following years to come. Therefore, this is an opportunity for the company.
ECONOMIC
CDL has enough potential to have huge losses attributable to the weakening of US dollars considering that it is a multi national company which has operations in various countries. As such while repatriating funds to

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