PAP Is Losing Economic Profits and Monopoly In Five Forces Analysis The Five Forces Analysis developed by Michael

Porter is usually used for business strategy analysis. For the money-minded PAP, it matches quite perfectly into the framework. Most importantly, as the competition moves towards a normal and perfect one, the economic profits or rents enjoyed by the PAP in the past will be gone. The PAP will have to face more competitions and lose more market shares in future. PAP monopoly status in Singapore politics is declining fast so do its past (enjoyed) economic profits. A company can enjoy economic profits when it has monopoly power (prevent entry), or imitation power (prevent copying) or dynamic capability (prevent innovation). The current PAP leadership and organisation has lost all these powers: 1. Monopoly: it can no more prevent or discourage people joining and supporting oppositions. This perhaps is the most

important consideration as voters have more options as compared to the past. 2. Imitation: Oppositions are able to learn from past mistakes, project better image and learn to present good policy options. 3. Capability: Oppositions are able to come out with innovative campaigns, more dynamic personalities and higher fighting spirit. PM Lee Hsien Loong in his recent interview with The Washington Post has indirectly admitted the losing of monopoly control and the competition has gone to normal.
["It's a different generation, a different society, and the politics will be different," said Mr Lee. "We have to work in a more open way. We have to accept more of the untidiness and the to-ing and froing, which is part of normal politics," he added.]
http://www.singapolitics.sg/news/govt-must-work-more-openly-and-accept-moreuntidiness-pm

Different politics, more untidiness and normal politics are the normal political competition environment in Singapore. This also means that the huge economic profits (in parliament) the PAP has enjoyed in the past is now a history.

If there are only normal profits in general elections, the situation of 60% votes controlling more than 90% parliament seats will also become a history. Normal profits mean normal distribution of parliament seats. Singaporeans have to be prepared for this outcome in future elections.

Porter Five Forces Analysis Wikipedia.org

Five Forces Analysis for the PAP Here is a short summary of the analysis. You may add more if you wish. Threat of Entry
Environment 1.1 High sunk cost Monopoly PAP (in the past) Yes. Oppositions have to pay high price to enter politics. Yes. GRC, Normal PAP (in future) No. It is difficult to use court case or other means to prevent people joining oppositions. No. Diminishing

1.2 Competitive

advantage

1.3 Retaliation

boundary re-draw and huge organization support. Yes. MSM and other means to discredit oppositions.

return begins to appear. No. Social media can counter attack. It is hard to use old practice anymore.

Threat of Substitutes
Environment 2.1 Cross-price elasticity of demand Monopoly PAP High. PAP can use economic growth as a substitute for less freedom, less open, less check and balance. Yes. The cost of changing government is high. Normal PAP Low. Singaporeans demand fairer distribution of wealth and more participation and involvement. Yes. It remains so but more willing to give it a try.

2.2 Switching cost

Bargaining powers of buyers (voters)

Environment 3.1 buyers not concentrated Monopoly PAP Yes. Voters can be separated into race, education and income background. Yes. Few oppositions and low quality. Yes. Chinese or English educated. Lower or higher Normal PAP No. Singapore citizen core appears. No. More opposition candidates with good quality. No. There are common issues for different segments

3.2 buyers have few options 3.3 buyers are segmented

income groups. HDB or private residences.

of citizens. E.g. education, transport, population etc.

Bargaining powers of suppliers (PAP associates)

Environment 4.1 Sellers are not concentrated Monopoly PAP Yes. NTUC, PA, business groups, associations, MSM and NGOs. Yes. PAP can even use government agencies, opinion surveys to help in campaigning. Yes. Even without full information, all supporting organizations know their rule and common target. Normal PAP No. Because of NS, common issues, consensus can be formed across different groups. No. It is harder and harder to find alternative supports. No. There are unhappy and confusions in grass roots. More criticisms from elites.

4.2 Firms have many alternatives

4.3 Sellers do not treat segment differently e.g. information not available.

Intensity of rivalry (oppositions)

Environment 5.1 small number of competitors Monopoly PAP Yes. Few opposition candidates. Walkovers. Normal PAP No. More opposition candidates. Not likely to have walkovers. Yes for oppositions, Yes for PAP. PAP especially in 1970s, finds harder and 1980s or even harder to find 1990s. suitable There are so many candidates. Will obstacles, ISA, the (threat of) loss

5.2 incentive (political ambition) to fight are low,

3.3 coordination is feasible, e.g. boundary fixing, tacit coordination

defamations, MSM etc. Yes. PAP encouraged low quality opposition candidates to contest in GE. Bad mouth good opposition candidates through MSM.

of power make PAP fight harder? No. It is difficult for low quality opposition candidates to contest, especial independent. Voters recognize and build party loyalty.