The German Centre-Singapore is one of the many branches of German center in the world. Such centers provide businesses with networks, rental offices as well as networks. All the centers in the world work in unity to strengthen the economy of German. The German Centre Singapore provides offices space to different businesses as well as services and events in Jurong International Business Park. The aim of the paper is to do a SWOT analysis in deciding if the business rentals should be renovated and how many should be added (Zeng, 2016, 24).
German Center- Singapore is in the industry of office rental business. The market for office rentals ought to be carefully studied so that the firm can get discovered. Discovery is a crucial aspect in marketing puzzle as well as a major stepping stone towards success. In such a market, the company has to stay in touch and get social so as to capture opportunities as they arise. The company can advantage of the social media platforms like LinkedIn, Facebook and Twitter. Vision Exchange is one of the major competitors of German Center- Singapore tower which has 25 office floors that feature 740 units comprising of47 restaurants, 640 offices, and 53 medical suites. The tower is easily reachable in case someone is driving himself or using public means of transport. Moreover, the company offers business organizations with immediate access and to different shopping malls, health clinics, and the International Business Park.
German Center- Singapore Strengths
Financial resources
There are a significant number of strengths in German Center- Singapore. For example, the company has enough resources to run the daily activities. The reason is that the company generates revenue and it aims at making high profits. Also, since German Centre is made up of different networks worldwide, the other international businesses can fund the company whenever an injection of capital is required.
Business location
German Centre is strategically situated in between Central Business District and Tuas at 25 International Business Park. The center is meant for business space both for sale and rent. The commercial property is also next to Jurong East MRT Station and near to many bus stops. The location is perfect to attract passengers who have alighted as well as those from the petrol station.
Rental of office units on seminar room event
German Centre is advantageous as it provides seminar room for various events that are held in the country. Alongside the provision of the seminar chambers, the German Centre also offers communication platform, storage services as well as exhibition spaces under one roof. Also, a business partnering with German Centre will enjoy the expertise and easy access to various networks (Zhu et.al. 2002, 98).
Sustainability in energy saving
German Centre enhances energy conservation and sustainability as its location is convenient and easily accessible. Therefore, less fuel energy is required to get in and out of the Centre. Also, the building materials of the office space of the building enhance conservation of the environment as they are eco-friendly. For example, they prevent overheating. As such, German Centre achieved the energy efficiency partnership award both for the year 2014 and 2016. Moreover, in the year 2015 German Centre Singapore was awarded Green mark platinum award.
Future high-speed rail terminal opposite the company
Shortly, a high-speed rail terminal is expected to be constructed just opposite the company. The high-speed rail terminal will be of great advantage to German Centre as the area will become more developed. There will be more clients coming from the rail terminal as the location is convenient. Also, the land on which the company is based will appreciate therefore making the office space to be of more value and therefore growth of profit or the business (Zheng et.al. 2004, 34).
Development of Jurong East and strong German community
German Centre-Singapore is likely to benefit from the anticipated development of Jurong East and a strong German community.
Cost advantages and competitiveness.
The average costs of running the German Centre in Singapore are relatively low, and this is an advantage to the company. Also, other competitors in the market which include Tradehub ICON and Vision Exchange offer a healthy competition to the company. Such competition enables the company to provide products and services that are of high quality.
German Center- Singapore weaknesses
German Centre- Singapore located in Jurong business international business park faces gaps when undertaking their operational activities. These weaknesses are social, financial, political and cultural factors that when handled professionally can alleviate a lot of problems. Some of the weaknesses include;
Building facilities already aging and require significant upgrading
Jurong business international business park has existed for a lot of decades now, and as a result, their building facilities are already aging. Therefore, these may affect business operations in that clients visiting the building will have a bad impression of the location of the business and will opt to look for other places to do their business activities. In essence, the building facilities will have to undergo a significant upgrading to be able to attract more customers which in effect will lead the center to be successful in its ventures.
Jurong International Business Park Lease
Jurong International Business Park has 30 years plus 30 years lease from Jurong Town Corporation that is currently already 25 years. The lease, therefore, is nearing its end term and will, therefore, need renewals which may incur more cost on the part of the businesses operating in part. Additionally, Singapore Centre will face an uncertainty of running in case the Jurong Town Corporation refuses to add more time to the Jurong International Business Park since the there can be political wrangles that may interfere with the process.
Absence of new products or clients
German centre-Singapore has faced the uncertainty of attracting more new products as well as for as customers in the business. The reason might be the lack of interest on the part of the customers who have led to the unattractiveness in partaking in the business activities. With the absence of new offices, then the existing customers will lack the opportunity to continue coming to the center since there will be no additional rooms that they can purchase. The company, therefore, will require new clients and therefore, there will be a decline in the business activities.
Declining market share
The Singapore economy is steadily expanding its real estate business, and therefore, there have emerged some real estate firms that have begun offering rental services at subsidized costs. These have led to the increase in competition in the sector which has then led the German Center- Singapore to perform poorly regarding the market share. The decline in the market share has been a major worry to the rental business since more customers have opted for other firms within the county and as such, the center will face financial concerns as a result of that. Market share depends on how a business attracts customers in the country and therefore, an increase in rental companies have led to the decrease in the purchasing price, and thats is why clients will opt to do businesses with firms that have offered lower purchase price.
Distance to market
German Center- Singapore has also faced problems due to their distance from the market. The reason is that clients will prefer to rent their business where there is accessibility to the market. As such, the center has lost a lot of customers to the preferences of clients on how accessible there are. Therefore, the distance to the market has weakened the business operations in the park.
Potential Opportunities for Your Business
New technology
The emergence of new technology such as Facebook, Twitter, and other Content Platforms will ease how the German Centre-Singapore will do business. The reason is that these platforms will result in the company marketing their rental services to a wider population and therefore, the business will gain more customers. These platforms have enabled marketing to be more involving since there can be inquiries over the Internet before they visit their place. Another technology such as new rental accounting software has allowed firms to track their costs and income firsthand properly (Yeo, 2017, 48).
Training programs
There are various training programs that the business can partake to increase the professional skills of their employees. Notably, for any business to be successful, then it is important that it focuses on strengthening the skills of their employees. Those training programs range from maintaining the German Centre-Singapore facilities range how to treat the customers within the business. Therefore, the programs will impact the necessary skills for the success of the business and therefore offer more opportunities for the firm to increase their financial success.
Partnerships
For German Centre-Singapore to be successful, then it has to involve itself in partnership activities that will help to reduce their risks of doing business. The partnerships will empower the institution to diversify their business activities that will in effect reduce their business risks in their operations. Such partnerships will also prove worthwhile in that they can begin to spread their investments to other areas where there are customers without necessarily stressing their assets and financial capability. Therefore, partnerships will offer more opportunities to German Centre-Singapore.
A diverse marketplace
The booming real estate sector has strengthened the economy of Singapore which has led to the increase of businesses in the country. The growth of the industry has resulted in the increase in the customers who seek to have rental offices for them to operate their businesses. The result of these have led to more opportunities in the market, and with that, there will be the emergence of a diverse marketplace of their products. Hence, German Centre-Singapore has seen these increases in the market to be an opportunity to continue operating in Singapore.
Change of government
German Centre-Singapore will benefit widely due to the change in government in Singapore. The business will benefit due to the enactment of several business acts instituted by Tony Tan, the president of Singapore. Tony Tan has brought various reforms that have increased harmony between firms and people which have led to the country to perform well in Transparency index as well as Ease of doing Business Index. Notably, change of government will lead the business to success since there will be the formulation of policies that will favor the business in the long run.
Potential threats to your business
Increasing competition
Among the treats that the company is facing is the increasing competition from companies like Vision Exchange that offer similar services. Substitutes provide customers with choices to select from using different means. When such substitute products and services penetrate the market, they usually create a ceiling on profits and hence German Centre might not be able to generate as much profit. Such direct competition can be at times intense particularly if the competing firms are of similar size. German Centre- Singapore is facing stiff competition from other companies Vision Exchange and ICON in offering seminar rooms and hotel rooms for business people from international countries.The company might decide to reduce competition by cutting down a price. Also, the company can minimize comp...
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