Rogers Communications Analysis

Rogers communication theory Analysis authorizedly Rogers has competition with companies like Bell Canada, TELUS and Shaw communication theory. at that place ar also late providers in the industry that ar entreating products and ope pass judgment at confused bells. Rogers is a fellowship that has the best technology in similitude of another(prenominal) providers. It is the only company that operates on both GSM and HSPA technology.1Rogers operates in three argonas. The beginning one is Wire slight, which includes radio set voice and data communications operate. Rogers is Canadas magnanimousst wireless(prenominal) provider. The second one is Cable. Rogers is one of Canadas largest providers of cable television function as fountainhead as full(prenominal)-speed Internet access, telephony work and video retailing. The third and the last one is media, which includes radio and television broadcasting, televised shopping, magazines and championship publications, and s ports defertainment. Its backbone is its distri andion carry, which includes 3,600 Rogers-owned, head teachers and retail outlets. Rogers provides valuable customer service to its customers. Its tendency is to maximize its subscribers and fashion the best communication and media provider. on that point are 70 subscribers out of 100 (2010) in comparing of 25 per 100 (2000). Further more than than,2in the sentence of recession, Telecom industry is one of the industries that support been able to win and make profit margins. Thus, Telecom industry is an industry where consumers go first which means that consumers would reduce their spending on other goods and services in comparison of telecommunication services. Therefore, if Rogers has brand sign and the tradeplaceplace is full of opportunities thus why let new entrants capture the market mete out.The second case that Rogers face is regarding its financial position. If we put one across the table below, companys rough gross sales branch in 2007 was 14.54% and speak to of goods exchange was $961 jillion. In 2008, sales growth reduced to 11.97% but cost of goods sell was more ($1303 million). If we see the last year that is 2009, sales growth was just 3.49% and cost of goods sold was $1380 million. This concludes that, if sales growth has been diminish e rattling year, cost of goods sold has not been decreasing with proportionate to sales growth. In other words, profit margin has been decreasing and companys operation is not able to profit its sales growth and minimize its cost of goods sold. Morever, if we see the debt to equity ratio, it is increasing every year. In 2007, it was 12.3. In 2008, it was 12.61 and in 2009 it was 12.98. This concludes that Rogers is using a hardening of debt to finance its operations. solely on the other side, Rogers has good return on assets of 8.67% in 2009 in comparison of 6.18% in 2008, which means Rogers is earning more money on less investment thi s year.In order to overcome current challenges, Rogers should use general low cost provider outline. Rogers should apply this strategy to solve its business concern and financial issues. The advantages of this strategy are customer satisfaction, moving towards its rivals, prevail market conditions and streng past its market position. What else stinker Rogers do to maintain its market share and presence? Rogers can include features and services in packages that are natural to its consumers. It can find moods to achieve competitive advantage that would be hard for the current rivals and new entrants to match. Though the industry did direct the long-playing growth in 2009 from 2000, the analysis shows that in that respect is a lot of mode to grow. When Rogers would use lower pricing for its products and services then there would be less competition and more accessibility to local market that would increase its sales and revenues. By doing this, Rogers is completing its missio n strategy, which is to add great treasure to its customers lives by offering new and reachable products and services.When companies raise prices of their products and services, they dont realize that by doing this they are far away from their customers but new entrants are set themselves in their customers shoes. In other words, they are thinking like their customers. This is what Rogerss strategy should be, to think like its customers and add value to their lives. If Rogers would think like its customers then there would be brand loyalty and there is less hazard of loosing its market share and presence. If customers would feel that Rogers has understood them, then they would definitely recoil with Rogers. This would lead to Rogers implementing its financial strategy, which is to maximize profit and return on investments.In regards to reducing Rogerss cost of goods sold, Rogers should invest more money on new technologies to improve its companys operations. This would decrease its cost of goods sold and increase business efficiency. In addition, Rogers can outsource some of its operations as it has been doing with its material IT infrastructure. Rogers has been outsourcing its physical IT infrastructure to IBM to make capital expenditure efficiencies. Rogers can do the identical with some of its operations but one thing to consider is that Rogers should have strict quality standards for its products and services while outsourcing. Furthermore, cost of goods sold increases when there are high gear designs or services that is neither seen nor valued by customers. Rogers can simplify its products and services and reduce cost of goods sold.In conclusion, Rogers, to become the best telecom company in Canada should apply all the recommendations above. This would help Rogers to increase its subscribers and reduce its cost of goods sold.A) INDUSTRY INFORMATION1. What are the exertions plethoric Economic Features?Market Size3In 2010, there are 70 wireless sub scriptions for every 100 Canadians in comparison of 25 wireless subscriptions per 100 in 2000.Market Growth Rate (Product Life Cycle) Maturity. There is competition between different companies.Growth Cycle4Real gross domestic action change magnitude from $25,559 million in 2007 to 26,775 million in 2009.52009 and 2010 are the slowest years of production growth in ii decades.Scope of Rivalry6Low barriers of entryway. New entrants are providing same services that big players do at low prices.Type of statistical distribution impart7Dealers, retail outlets and advertisement.Pace of technological change8Internet connection gift access to television entertainment.Level of Product Differentiation-Low. All companies offer same products or services.Ease of Entry Exit9Low barriers of entry callable to deregulation of telecommunications service providers and advancement in telecommunication system. attention Profitability10Profit margin has decreased to 12.8% in 2009 from 13 % in 2007.S ummary- Telecommunication Industrys market size and real gross domestic production has increased but profit margin has decreased. There are low barriers of entry but competition is high.2. Competitive Analysis Summary The 5 Forces ModelThe Rivalry among competing sellers in the Industry Intense. Companies try to attract customers with more discounts, promotions and benefits in comparison of their competitors.Firms in other industries offering substitute products Weak. Customers have no option or substitute for services offered by companies in telecommunication industry.The potential entry of new competitors-Weak. Low barriers of entry11due to deregulation of telecommunications service providers and advance in telecommunication system. Entrants enter the market but do not survive unless they offer low prices because companies govern in telecommunication industry have brand equity and customer loyalty.The bargaining big businessman of suppliers12Weak. Small Internet resellers get a very small share of the market, and their share has been declining in recent years.The bargaining power of buyers-Moderate. There are not many companies that offer all the products and services but still customers switch to rivals when they offer huge discounts and promotions.Summary- Suppliers share has been decreasing. There are no substitutes and buyers have very less options. There are low barriers of entry but competition is high too.3.Drivers of ChangeIndustry Growth Rate13Real gross domestic production increased from $25,559 million in 2007 to 26,775 million in 2009.Product Innovation14Smartphone, high speed Internet and digital TV.Technology Change15Fiber optics, better computer technology and the Internet.Regulatory/Government Influence16Business rules are regularly changing which is giving small Internet providers access to the large companies profitss.Summary- The main driver of change is the new technology introduced every time that excites customer to purchase product s and services.4.Competitive PositionQuality of Services and interlock slight MoreFew ManyCoverageWho is favorably/ unfavorably positioned why? -Bell Canada occupies the most favorable position among the rivals because of being first Canadian telecom company and occupying more coverage. The wetst competitor to Bell Canada is Rogers that offers large commixture of products and services and has a wide geographical presence in the market of telecommunication industry. 5. lynchpin Success FactorsTechnology Related17HSPA+ 21 Mbps wireless interlock and DOCSIS-3.0 50 Mbps high-velocity Internet service.Organizational Capability18Knowledgeable lag that would develop newer, better, and faster ways to deliver what customers want, while also delivering magnetic returns for shareholders.Distribution Channel19Diversified distribution channels such as dealers, retail outlets and advertisement.Other-Brand image. Widely recognized and accepted by customers.Summary- Key success factors in te lecommunication industry are technology, well-trained staff, distribution channels and brand image.6.Industry Attractiveness-The industry is at maturity level. There is a lot of room to grow and profits are high. Whenever, new technology is introduced, customer demand increases. Low barriers of entry makes it easy for new entrants to enter the industry but it is hard to survive unless they offer low prices because there are big players in the industry. There are no substitutes. tilt is intense as companies try to attract customers with more discounts, promotions and benefits in comparison of their competitors.B) COMPANY RESOURCES AN INTERNAL ASSESSMENT1. The Strategic-Making ProcessVision Statement verbalise/implied20To grow in the business while taking care of incorporate social responsibility.Mission Statement21To add great value to customers lives by offering new and reachable products and services.Strategic ObjectivesBusiness Maximize the tally of subscribers and become Can adas best communication and media provider.Organizational 22Achieve highest standards of business select among all employees.Financial Maximize profit and return on investments.Current Strategy-23Launched Long Term Evolution (LTE) so that customers can anywhere, anytime access to information, communications and entertainment.Strategic Performance IndicatorsQualitative Measures-24High-quality network coverage.-Customer satisfaction. HSPA+ 21 Mbps wireless network and DOCSIS-3.0 50 Mbps high-speed Internet service.Quantitative Measures-257% growth rate in Wireless Network and Cable Operations businesses in 2009.261.5 million Smartphone customers in 2009.2. Financial AnalysisConclusion- The corporation has issue with its cost of goods sold. canvass all years, sales growth is decreasing but cost of goods sold is increasing .If this continues then soon the company would loose its financial well -being. Therefore, the company should increase its sales growth but decrease its cost of g oods sold.High debt to equity ratio indicates that the company is using a lot of debt to finance operations, which might be reason for company to have more earnings than it would have without debt. Rogers have 1 2.98 in 2009.27Rogers has also generated a 29% increase in free cash flow growth in 2009.Return on assets provides information on how effectively company is utilizing its money to convert it into sales. Rogers has good return on assets of 8.67% in 2009 in comparison of 6.18% in 2008, which means Rogers is earning more money on less investment this year.In total asset turnover, the figure indicates how much is generated in sales from every dollar worth of assets. Rogers has 68.80% in 2009 in comparison of 69.9% in 2008.This means that Rogers has been less efficient at using its assets in generating sales this year.In current ratio, the conclusions cannot be drawn before considering other factors. However, when the current ratio is higher than 1, it is normally considered acce ptable. It indicates how quickly current assets can be turned into cash. Rogers is in less good position by having 10.80 in 2009 in comparison of 10.84 last year.3. The Company Value ChainOperations28Rogers is the only one operating on both GSM and HSPA technology.29Outsources its physical IT infrastructure to IBM to make capital expenditure efficiencies.Distribution30Powerful national product distribution network consisting of more than 3,600 Rogers-owned, dealer and retail outlets.Sales and Marketing31Activated 1.5 million Smartphone customers.Service32Created a dedicated team who would engage with customers looking for help in online forums and little blogs.33Created the Rogers Customer Commitment to help customers understand what they can expect when they tweet with Rogers.Summary- Rogers have the best technology, outsource, distribution network and customer service that makes its way to success.4.Competitive Strength Assessment Model 5-8 KSFs weightedConclusion- Bell and Rog ers have close competition. TELUS and Shaw are behind Rogers. Bell has 10 rating for reputation image because of being the oldest and trusted company in Canada. Rogers is trying its best to bit Bells market presence and has been successful in doing that. In terms of technology, Rogers has 10 rating because it is the only one operating on both GSM and HSPA technology.5. debone AnalysisInternal(S)trengths-Brand recognition.34Powerful national product distribution network.35consecrated team for customers.(W)eaknesses-Internal inefficiency that increased cost of goods sold.-Dependent on debt.External(T)hreats-Bell, TELUS and Shaw Communications.36New entrants are entering the market.(O)pportunities37Attract new clients.38$900 million total principal sum of 4.70% Senior Notes due in 2020.Summary- Rogers has internal strength in its brand recognition and distribution channels. Its weakness lies on increased cost of goods sold and debt. Competition is intense with current rivals and new entrants. Opportunities are bright with new and existing customers.6. Strategic renders that merit Managerial AttentionBusiness unloose39Would it be a good strategy by Rogers to lower price of its products and services due to high competition from new entrants?Financial Issue-How should Rogers decrease their rising costs?7. Criteria for Strategic Solution(s)Able to maintain high quality network coverage, HSPA+ 21 Mbps wireless network and DOCSIS-3.0 50 Mbps high-speed Internet service, 7 % growth rate in Wireless Network and Cable Operations businesses, 1.5 million Smartphone customers and reduce cost of goods sold.Work CitedCanadian Industrial Outlook. (Autumn 2010). Canadas Telecommunications Industry. The Conference Board of Canada Retrieved from http//www.conferenceboard.ca.ezproxy.lib.ryerson.ca/temp/f191b447-0cc1-43f8-89cd-a7d54518d917/11-146_CIOS-Telecom_Autumn10_WEB.pdf.Investor Relations. Rogers. Retrieved from http//www.rogers.com/web/Rogers.portal?_nfpb=true_pageLabel= IR_LANDINGCorporate kindly Responsibility. Rogers. Retrieved fromhttp//your.rogers.com/aboutrogers/csr/overview.aspAbout Rogers. Rogers. Retrieved fromhttps//www.rogers.com/web/Rogers.portal?_nfpb=true_pageLabel=about_landingPRNewswire. (October 6, 2010). Rogers Announces First Lte Technical Trial in Canada. hick finance. Retrieved fromhttp//finance.yahoo.com/news/Rogers-Announces-First-Lte-prnews-2287777662.html?x=0.v=62Guides to Occupations. Working in the Telecommunication Workers Industry. versatile Immigrant Infocentre. Retrieved fromhttp//skilledimmigrants.vpl.ca/index.php/guides/industry/telecommunication_workersDefining Next. ROGERS communications INC. 2009 ANNUAL REPORT. Rogers. Retrieved fromhttp//www.rogers.com/cms/investor_relations/pdfs/2009_Annual-Report.pdfBringing Your World Together. ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT. Rogers. Retrieved fromhttp//www.rogers.com/cms/investor_relations/annual_html/2008/html/HTML2/default.htmThe Americas Intelligence Wire. (Sep 22,2010). Rogers Communications Prices $900 Million Senior Notes Offering. Ryerson. Retrieved fromhttp//galenet.galegroup.com.ezproxy.lib.ryerson.ca/servlet/BCRC?rsic=PKrcp=COvrsn=unknownlocID=rpu_mainsrchtp=cmpcc=1c=136mode=cste=72tbst=tsCMtab=2ccmp=Rogers+Communications+Inc.tcp=rogersn=25docNum=A237731531bConts=13119