Rogers Communications Inc
Rogers Communications INC.
Industry overview
The Canadian cellular service’s industry is comprised of approximately 15 cellular providers. These operators employ approximately 16,000 individuals and generate more than CAN$10B in revenues annually, which represents almost 30 percent of the Canadian telecommunications market. The Canadian wireless industry has been experiencing an annual growth rate three times that of any other Canadian telecommunications sector. This is very significant as Canada is in the top 10% in the world for broadband penetration.
The general softness in the Canadian and the Ontario economy has negatively impacted Media’s advertising sales, and lowered net additions of most cable and Internet products. Rogers Shopping Network has also been in a constant decline based on the current recession.
Telecommunications can be described as a rapidly changing, innovative and capital intensive industry. The convergence of technologies, the migration of customers from traditional mediums to the Internet, and a more intense rivalry, presents a new competitive landscape for telecommunications companies. After reading and analyzing the case at hand, the following aspects are recommended as a strategic direction for the future of the company, taking careful account of the opportunities and threats imposed by the market, and taking advantage of the company´s capabilities and strengths.
Given the industry and customer behavior trends, the following recommendations are suggested:
1. Keep the quadruple play strategy for sustained growth, with an effective leverage.
2. If Rogers decided to follow suit of the American carriers and offer unlimited plans, they could potentially gain large market share. New technologies, such as LTE, Rogers could capitalize on the emerging "4g" market and be in control of the fastest market in Canada. Wireless Providers in Canada, as of today, do not offer any unlimited plans. If a new company decided to
Industry overview
The Canadian cellular service’s industry is comprised of approximately 15 cellular providers. These operators employ approximately 16,000 individuals and generate more than CAN$10B in revenues annually, which represents almost 30 percent of the Canadian telecommunications market. The Canadian wireless industry has been experiencing an annual growth rate three times that of any other Canadian telecommunications sector. This is very significant as Canada is in the top 10% in the world for broadband penetration.
The general softness in the Canadian and the Ontario economy has negatively impacted Media’s advertising sales, and lowered net additions of most cable and Internet products. Rogers Shopping Network has also been in a constant decline based on the current recession.
Telecommunications can be described as a rapidly changing, innovative and capital intensive industry. The convergence of technologies, the migration of customers from traditional mediums to the Internet, and a more intense rivalry, presents a new competitive landscape for telecommunications companies. After reading and analyzing the case at hand, the following aspects are recommended as a strategic direction for the future of the company, taking careful account of the opportunities and threats imposed by the market, and taking advantage of the company´s capabilities and strengths.
Given the industry and customer behavior trends, the following recommendations are suggested:
1. Keep the quadruple play strategy for sustained growth, with an effective leverage.
2. If Rogers decided to follow suit of the American carriers and offer unlimited plans, they could potentially gain large market share. New technologies, such as LTE, Rogers could capitalize on the emerging "4g" market and be in control of the fastest market in Canada. Wireless Providers in Canada, as of today, do not offer any unlimited plans. If a new company decided to