Rodgers Communication

RodgersCommunication

CompanyOverview

RodgersCommunications is one of the leading communications and Media Companybased in Canada. It offers diversified products and services thatmeet their consumers ever increasing demands. The company iscommitted in four main segments namely Cable, Media, BusinessSolution, and Wireless. The corporation also provides a wide varietyof services to both individual consumers as well as businesses. Thecompany is also involved in television and radio broadcasting,digital media, trade publications and consumer magazines,multi-platform shopping, and sports media and entertainment. Most ofthe company’s operations are based in Canada with the head officelocated in Toronto, Ontario with other offices across the Country.There are also roughly 26,000 workers who are highly skilled anddiversified [ CITATION Rog16 l 1033 ].

Thispaper will dwell on . The paper will assess themission, vision, and key stakeholders of the company and theircorresponding impacts. Porter’s five forces will also be utilizedto illustrate how the competitive nature of the industry affects thecompany. In addition to that, a SWOT analysis will be provided todemonstrate the strategy employed by the firm to stay competitive.Corporate governance is also a key facet that affects companyoperations. In that regard, this paper will give an in-depth analysisof the communication aspects as well as leadership that impact on theenterprise.

Mission

RogersCommunication strives to provide the best, most innovative goods andservices while still managing its operations responsibly andperforming the day-to-day activities in a moral and transparentmanner (Rogers Inc, 2016).

Vision

Thecompany’s idea is to contribute to the community, society, andeconomy in a meaningful manner (Rogers Inc, 2016).

Thetable below presents a summary of the organizational stakeholders.

Stakeholders

Demand/Attributes

Capital Market

Shareholders

The retail investors and financial investors expect a rise in the dividends paid yearly. The company has a 70 percent payout ratio

Debt holders

Debt holders and large banks expect the company to pay timely interests. According to the rating bodies, the company’s bonds are regarded as stable

Product Market

Broadband

The corporation runs 35 percent of the cable networks in Canada, with connections in more than 2 million homes. The broadband speeds can reach 350 Mbps.

Wireless

The company, holds roughly 35 percent of the market share making it the leading wireless carrier in Canada. It generates around $7 billion in revenue

Media

The company reaches up to 90 percent of the population via radio, TV, and print media. The strong media brand is based on sports and distributions.

Thecompany strives to undertake its duties based on the vision, mission,and stakeholders. Contributing positively to the society mandates thecompany to invest in novel innovations that enable it to staycompetitive. These aspects have contributed to the company’soverall success (Sheppard, 2016).

Porter’sFive Forces of Competition

Thebargaining power of buyers is low. The industry is considered anoligopoly i.e. only a few companies are dominant. Thetelecommunication industry in Canada is dominated by three companiesthat set prices close to one another. In that regard, consumers areconsidered to be price-takers in the market. The only bargainingpower consumers have entails, the capability to conduct businesseswith the lower-priced smaller corporations like Verizon, Wind Mobile,and Koodo. The buyers are forced to choose between the low pricedcompanies and higher security networks [ CITATION Jer16 l 1033 ].

Thesupplier’s bargaining power is moderate to high. They constitutethree core segments:

  1. Talented workers who strive to address the constantly changing technology demands. The innovative team is an essential facet in developing a competitive advantage.

  2. The CRTC that has comprehensive regulations pertaining the supply of transmission frequencies is also important. In this case, the government has a high bargaining power.

  3. Handset manufacturers such as Apple are involved in mass production of devices for the various carriers across the globe. In that regard, the Canadian market offers a small portion of the market. Therefore, the carriers including Rodgers has no bargaining over the manufacturers.

Thethreat of substitute services and products is high. Since the pricesrarely fluctuate, the companies compete regarding network reliabilityas well as customer service. The switching costs have also declinedwith the contract length also decreasing (Sheppard, 2016).

Thethreat of entry of new product is moderate. The three companies, thatis Rodgers, Telus, and Bell control the majority of the market shareleaving a small portion for the smaller companies. Due to thereputation and brand equity involving the big companies, new firmsfind it hard to venture into this industry. Moreover, the largercompanies acquire smaller ones to stay competitive (Sheppard, 2016).

Theindustry rivalry is high. The threat of substitute products and lowswitching costs heighten the competition between the big companies.Therefore, the corporations compete on providing promotional offersand customizable bundles to attract consumers (Sheppard, 2016).

SWOTAnalysis

TheSWOT analysis of Rogers Communication, Inc. gives an analysis of thecorporations’ businesses as well as operations. The profileillustrates a detailed view of the organization’s primarystrengths, weaknesses, potential opportunities, and threats.

SWOT Analysis

Strengths

  1. It is the only company that utilizes both HSPA and GSM technologies

  2. Diversified market, i.e. operates in three areas including wireless, wireless data, and data communications

  3. It has diversified business operations across sports, telecom, and media

  4. Being one of the top corporations in Canada, the company boasts of a substantial customer base

  5. Has a depth of creativity

Weaknesses

  1. It has a narrow global presence as compared to some of its competitors

  2. The company is over-reliant on the Canadian market that is almost saturated

  3. Future debt rates could inhibit progress

Opportunities

  1. Venturing into the global markets

  2. Income level is consistently rising

  3. Growing demand

Threats

  1. High competitive pressure from Bell Canada, TELUS, and Shaw Communications company

  2. Changing regulations in the area may affect operations

  3. Technology changes rapidly as a result of wireless telephony

Strengths

Asearlier illustrated, Rogers Communications Inc. is the only companyusing both HSPA and GSM technologies. This aspect draws customers.The ability to provide both these technologies is an integral part ofthe corporation. The company also benefits from cutting acrossdifferent areas i.e. wireless, wireless data, and datacommunications. All these aspects make it a unique company that cansuit various needs of the consumers. The company has a depth ofcreativity that are involved in innovation. The Rogers CommunicationInc. has been a mainstay regarding fresh innovations. Due to thisaspect, it has managed to grow substantially traversing many areasacross Canada. Due to its diversified business operations acrosssports, telecom, and media, the company manages to attract variouskinds of consumers in need of their services. The dense customer basechampions the company`s success. It is the leading CommunicationCompany in Canada with several branches across the country [ CITATION Bro16 l 1033 ].

Weaknesses

Thecompany relies solely on the Canadian market. The market iscontinuously getting denser and may limit further growth if itattains saturation. The corporation has limited to no global presenceas compared to its fellow competitors. In other words, the companydoes not influence other markets in the globe as it does in Canada.As per the liquidity ratio, the company experienced a good currentratio at the beginning of 2014. Since then, the values have beenquite low. In that respect, the company might face the challengesrelated to debts to meet their needs. There are high chances that thecorporation may be drawn into borrowing in future [ CITATION Bro16 l 1033 ].

Opportunities

Thecompany would benefit a lot with advancements into the globalmarkets. Technology tends to move fast, and Rogers Communicationcould profit from venturing into the international markets as a meansof sustaining and improving the corporation. Additionally, there is alikelihood that markets in Canada could soon be saturated, and thiscould hinder their operations. There is also a growing demand fortelecom products and services. All across the globe, the extent oftelecom growth has been felt and is continuously rising. The company,therefore, should adjust to the changes and sustain the growingdemands [ CITATION Bro16 l 1033 ].

Threats

Competitionin the telecoms field is quite intensive. The number of new entriesinto the field is consistently growing, whereas some companies arecontinuously developing new technologies. The Rogers CommunicationInc. faces stiff competition from Bell Canada, TELUS, and ShawCommunications Company. The regulations and Acts are bound to changewith time. Alteration of Acts is a source of concern since it tendsto inhibit progress, especially if it involves the customers or thecompany’s mode of operation. Any aspect of the corporation that canbe affected by the change will hinder progress. In addition to that,regulations across different countries are constantly changing. Ifthe company were to venture outside the Canadian markets, thenalteration of rules may inhibit their advancements in a globalperspective (Brochure, 2016).

TheCompany’s Strategies

Thecompany utilizes a particular generic approach to maximize itscompetitiveness and profitability. The strategy can also be used tocapitalize on its strength and minimize the weaknesses and threats.The generic procedures entail the relation between cost minimization,market focus, and product differentiation strategies. This willprovide the generic strategies which the company wants to attain overthe coming years. It brings out the clear picture of where thecompany is heading [ CITATION Placeholder7 l 1033 ].

TheRogers Communication Inc. utilizes a differentiation kind oftechnique whereby it champions excellent research, development, andinnovations. In addition to that, it delivers high-quality goods andservices that are appreciated by the customers. The company usesunique mechanisms to stay attached to its clients as well as attractnew consumers. For instance, it is the only company using both GSMand HSPA technology. In the telecoms field, one has to stay unique toget an upper hand when it comes to the market perspective [CITATION Mar161 l 1033 ].

Apartfrom being the only company with that distinctive feature, RogersCommunication provides services in three areas i.e. wireless,wireless data, and data communication. As per the differentiationstrategy created by Porter, a company must have influence over itstargeted market, making effective sales that are somehow differentfrom the competitors [ CITATION Min161 l 1033 ].By taking this in mind, Rogers Communication has established itselfas a leader in the telecom field within the Canadian markets. Inaddition to that, one of its 2016 objectives entails expanding thesales and invent “leapfrog” technologies utilizing theenterprise-grade networks. By doing so, the company hopes torecapture its leadership in the cable network, as well as maintainthe dominance in wirelessnetworks [ CITATION Pow151 l 1033 ].

Evidenceof the differentiation strategy is also embedded in the company’sinnovation and development team. The corporation has a propensity ofdeveloping novel technologies that are attractive to the consumers.For instance, the launching of the First Wi-Fi Smartphone Service inthe Canadian markets helped the company in capturing the customers.Advancements of such innovative aspects continue to propel thecorporation into broadening its markets and sustaining its name asthe best in telecom. Though it focuses on the Canadian markets, thecompany can exert competition in the global markets with properorganization. It has mastered the dynamics of the Canadian markets,making it quite hard for the other companies to outweigh them [ CITATION Mar151 l 1033 ].

Thecompany has been doing well within the region. Its customer base isquite dense, but it could benefit from venturing into the globalmarkets. It should not be limited to Canada and its environs.Regarding technology, it is almost the same across the countries withonly a few differences. Therefore, venturing into internationalmarkets or rather emerging markets could be quite useful. Othertelecom companies have attained global recognition due to theirability to tap potential markets and offering adequate services. Whenentering a new market, a corporation must learn the respectivedynamics and adjust the requirements. In that regard, RogersCommunication can mobilize itself to learn other countries marketchances and offer its products. Relying on Canada alone can bedetrimental, especially when the market attains saturation. At thisjuncture, it would be hard to improve their profits [CITATION Dob161 l 1033 ].

CorporateGovernance

Communicationof the strategies can be conveyed by the research and developmentteam. First, the team will be informed of the plans for them toconduct a comprehensive analysis. After that, it will be ascertainedwhether they are effective before telling top management and then thestakeholders. The company through its board endorses the aspect ofcorporate governance and are guided by the Sarbanes-Oxley Act of 2002(U.S), Canadian Securities Administrators, and the New York StockExchange (NYSE). Some practices that show corporate governanceinclude controlled company exemption, Foreign Private Issuer Status,and Appointment of Auditor. Corporate governance is also envisagedvia the diverse board composition [ CITATION Jer16 l 1033 ].

Thoughthe company is a Telco leader in Canada, its leadership wasquestioned when the customer complaints increased in 2015 (Dobby,2016). Apart from that, the company’s debt levels were rising.These aspects are key determinants of effective leadership. The lackof growth in the global markets is also linked to leadership.However, the corporation can counter all these facets by includingthe employees as shareholders. The technique will allow the workersto share the profits. In that regard, they will be motivated to workeven harder to increase the company’s profits. Such a mechanismwill propel the company into the global market. The company alsostrives to remain ethical throughout its operations. This isdisplayed in their vision and strategy. As long as they perform theirtasks by the stated mission and vision statements, the companyshowcases its responsibility in remaining ethical.

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