Final answer:
The decline in earnings of SingPost can be attributed to three primary factors: changes in business trends leading to less demand for traditional mail, advances in technology that offer alternative forms of communication, and the pressures of globalisation with increased competition in delivery services.
Step-by-step explanation:
Examining the decline in earnings of SingPost for the first half of its fiscal year ending in September 2022, we can analyse three factors that potentially contributed to this outcome: business trends, advances in technology, and globalisation.
Business Trends
The transformation in how consumers exchange information heavily impacts postal services. A shift towards digital communication means fewer people are sending physical mail – a trend not limited to Singapore but observed worldwide. This change in consumer behaviour leads to a decreased demand for traditional postal services, similar to what the U.S. Postal Service is experiencing.
Advances in Technology
Technological advancements, which enable instant communication via email, text, and social media platforms, are pivotal in the changing landscape of communication. This change in tastes away from snail mail toward digital messages causes a significant reduction in demand for postal services.
Globalisation
Globalisation has integrated markets and increased competition. SingPost competes with international courier services and e-commerce delivery networks that offer faster and sometimes more cost-effective services. This increased competition can erode SingPost's market share and profitability.