Pest Analysis and Comparison of Australia vs.

PEST analysis and comparison of Australia vs. Singapore:

Opportunities in advertising

Although much of the world suffered severe economic setbacks during the recent global recession, two of the hardiest economies have proven to be that of Singapore's and Australia's. Australia has a projected budget surplus for 2012?2013 and the unemployment rate is expected to fall to 4.75% in late 2011?2012, "around levels consistent with full employment" (Australia, 2010, U.S. State Department). Singapore's economy grew 17.9 per cent in the first half of 2010, even while the United States' was struggling (Ramesh 2010).

Because of their resilience and prosperity, both nations are highly attractive to foreign investors, given their relative wealth, expanding population, and location. However, an advertising firm considering exploring either marketplace must keep other considerations in mind when evaluating opportunities, including the social climate of these nations, the government's attitude towards freedom of speech, and the cultural values expressed in each nation's advertising.

Political

Australia is a member of the British Commonwealth, and possesses a bicameral Parliamentary democracy. It is currently governed by a coalition of conservative-to-center and liberal-to-center parties, under a Labor prime minister. Of particular relevance to a proposed advertising agency is the strong support for civil liberties in Australia. Although Australia has no bill of rights, and is part of a common law tradition typical of the former British colonies, quite often Australian advertising is even more open and playful in tone than in the United States (Australia, 2010, U.S. State Department). Singapore characterizes itself as a republic with a unicameral parliamentary system of government, but is far more restrictive of individual liberties than Australia (Singapore, 2010, U.S. State Department).

Unlike Australia, there are no strong Singaporean civil libertarian groups that act as public advocates to protect individual rights. Even foreign journalists have fallen afoul of Singapore's strict libel laws: "The International Bar Association (IBA) and America's State Department have both raised concerns over the repeated use of defamation suits against critics, and questioned the independence of the courts" (You can cage the singer, 2010, The Economist). A journalist was charged with libel when he wrote a book about the liberal use of the death penalty within the former British colony

Social

Australia is a modern, Western democracy. Its population and terrain are extremely diverse. Although it began with predominantly British-Irish settlers as a nation, today almost 24% -- almost one in four -- of Australians are foreign-born. Britain, Ireland, Italy, Greece, New Zealand, and the former Yugoslavia were the largest sources of post-war immigration (Australia, 2010, U.S. State Department). Singapore is similarly diverse. In 2009, it was estimated that as much as 42% of Singapore's population was foreign-born (Population trends, 2009, Government of Singapore). However, there is far less tolerance of so-called deviant behavior within Singapore, including relatively minor offenses such as vandalism. This suggests that Singapore might be less open to the foreign mindset and ideas of an imported advertising agency than would Australia.

Economic

In urban areas, Australia enjoys one of the highest standards of living in the G7. It has become far more enterprise-friendly in recent years to attract foreign investment and deregulated many state-controlled industries (Australia, 2010, U.S. State Department). Australia is also an extremely attractive place for foreign investment, particularly given its petroleum, natural gas and coal reserves. It "is a significant net hydrocarbon exporter, exporting about two-thirds of its total energy production" (Australia, 2010, EIA). Although not immediately relevant to advertising, this suggests a strong and stable economic outlook for the future, even in light of uncertainty in the Middle East, ensuring a sustainable source of clients for an advertising agency.

In contrast to Australia, Singapore boosts relatively few natural resources. "However, Singapore's strategic location on major sea lanes and its industrious population have given the country an economic importance in Southeast Asia disproportionate to its small size" (Australia, 2010, U.S. State Department). Its economy, including demand for goods and services, is expanding at an even more rapid pace than Australia.