PEST Analysis: Australia vs. Singapore Advertising Opportunities

Introduction

Although much of the world suffered severe economic setbacks during the recent global recession, two of the hardiest economies have proven to be those of Singapore and Australia. Australia had a projected budget surplus for 2012–2013, and the unemployment rate was 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 percent 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 populations, and strategic locations. However, an advertising agency considering either marketplace must weigh additional factors: the social climate of each nation, the government's attitude toward freedom of speech, and the cultural values expressed in each country's advertising landscape.

Political Environment

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 operates within a common law tradition typical of former British colonies, Australian advertising is often even more open and playful in tone than advertising in the United States (Australia, 2010, U.S. State Department).

Singapore, by contrast, 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 civil libertarian advocacy groups in Singapore working 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). In one notable case, a journalist was charged with libel after writing a book about the liberal use of the death penalty within the former British colony. This regulatory environment presents significant constraints for any agency seeking to produce bold or unconventional advertising content.

Social Environment

Australia is a modern, Western democracy whose population and terrain are extremely diverse. Although the nation began with predominantly British-Irish settlers, today nearly 24% — almost one in four Australians — are foreign-born. Britain, Ireland, Italy, Greece, New Zealand, and the former Yugoslavia were among the largest sources of post-war immigration (Australia, 2010, U.S. State Department). This multicultural foundation has shaped a society generally receptive to diverse ideas and creative expression.

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 cultural conservatism suggests that Singapore may be less open to the foreign mindset and creative approaches of an imported advertising agency than Australia would be.

Conclusion

Despite the rapidly expanding market within Singapore, the nation's small size and profound cultural differences with the West suggest that Australia would prove to be the more attractive marketplace. Cultural compatibility is important in advertising, and Australia would likely be more receptive to the humor, attitude, and ethos of a foreign advertising agency than would Singapore. The combination of a strong civil liberties tradition, a multicultural and diverse population, a resource-rich and stable economy, and a Western cultural orientation makes Australia the more promising long-term destination for a foreign advertising agency.

References

Australia. (2010, November 24). U.S. Department of State, Bureau of East Asian and Pacific Affairs. Retrieved March 5, 2011, from http://www.state.gov/r/pa/ei/bgn/2698.htm#gov

Australia. (2011). U.S. Energy Information Administration (EIA). Retrieved March 5, 2011, from http://www.eia.doe.gov/emeu/cabs/Australia/Background.html

Population trends. (2009). Government of Singapore. Retrieved March 5, 2011, from

Ramesh, S. (2010). Government's goal is to ensure all Singaporeans enjoy the fruits of growth. Channel NewsAsia. Retrieved March 5, 2011, from

Singapore. (2010, November 24). U.S. Department of State, Bureau of East Asian and Pacific Affairs. Retrieved March 5, 2011, from http://www.state.gov/r/pa/ei/bgn/2798.htm#gov

You can cage the singer. (2010, November 4). The Economist. Retrieved March 5, 2011, from http://www.economist.com/node/17419873?story_id=17419873