Case Study Analysis and Report

Running head: CASE STUDY ANALYSIS AND REPORT
Case study analysis and report
Name of the student
Name of the university
Student ID
Author note

CASE STUDY ANALYSIS AND REPORT
Table of Contents
Appendix:...................................................................................................................................2
A. Company’s External analysis:...............................................................................................2
1. PESTEL..................................................................................................................................2
2. Economic indicators...............................................................................................................3
3. Porters five forces and their impact.......................................................................................3
4. Factors driving change and their impact................................................................................4
5. Key success factors................................................................................................................5
6. Strategic group map analysis.................................................................................................5
7. Company outlook based on the assessment of the industry...................................................6
B. Company’s internal analysis..................................................................................................7
1. Financial analysis...................................................................................................................7
2. How well is the company present strategy working............................................................13
3. SWOT analysis.....................................................................................................................14
4. Value chain...........................................................................................................................15
5. Identification of one strategic issue......................................................................................16
Introduction:.............................................................................................................................17
Analysis:...................................................................................................................................17
Alternative:...............................................................................................................................18
Recommendation:....................................................................................................................19
References and Bibliography list:............................................................................................21

CASE STUDY ANALYSIS AND REPORT
Appendix:
A. Company’s External analysis:
1. PESTEL
1.1 Political factors’
The deal of selling Shaw media to Corus would be contrary to the past practice in the
telecommunication industry of Canada. Therefore, the idea of selling the media to Corus
would not align with the regulations of telecommunication industry. Several divisions of
Shaw such as cable television, broadband internet and telephone are regulated by different
Canadian regulations.
1.2 Economic factor
There is an increase in household spending on the telecommunication services and in
light of such increase, the company is experiencing an increase in the demand growth of
services of Shaw communication. The standard industry practice of bundling two or more
services would enable the company to derive the benefits from economies of scale (White et
al. 2017, p.3).
1.3 Social factor
The declining consumption of traditional television services has resulted in the overall
TV business at the annual rate of 5% that has been consistent with the trend (White et al.
2017, p.5). In addition to this, the fastest and largest growth in the connectivity of consumers
among the household of Canada has resulted in holding significant foothold in the wireless
phone market.
1.4 Technological factor
The demand of services of Shaw communication has increased because of the
advancement in the technology that has enabled consumer to watch anything and anywhere.
1.5 Environmental factor
The internet service of Shaw communication is delivered through using fiber coaxial
cable network and such network has high resistance to electronic signal pollution, shielding
effectiveness and improving attenuation.
1.6 Legal factors
The cable television division of Shaw communication is impacted by the Canadian
radio communication and telecommunication commission and this has impact on the network
serving the provinces of Alberta and British Communication. Such commission also requires
the company to access to their owned media content from all the providers of
telecommunication.
2. Economic indicators
This section outlines three economic features that impact the business of Shaw
communications:

CASE STUDY ANALYSIS AND REPORT
2.1 Growth rate- Over the past five years, the internet product customer service of
Shaw communication experienced growth with an average of 2% increase annually. The
home product of Shaw also experienced a strong growth along with the growth in the demand
of overall telecommunication services. The growth of revenue from cellular consumption of
data has increased and it is expected that such growth rate would be moderated because of
greater access of public Wi-Fi (White et al. 2017).
2.2 Number of rivals- Shaw communication is one of the large ownership groups in
the consumer telecommunication market of Canada. The rivalry of Shaw communication
includes TELUS, Bell, Rogers and Videotron along with some other largest entities such as
Cogeco Inc, Brag Communication Inc and Manitoba telecommunication services (White et
al. 2017, p.6).
2.3 Economies of scale- The standardized industry practice that requires bundling of
two or more services would provide benefits to Shaw communications in terms of economies
of scale (White et al. 2017, p.3). In addition to this, customers signing up for multiple
services are provided increased discount which would result in increasing revenue for
company.
3. Porters five forces and their impact
3.1 Competitors
The industry in which the Shaw communications operates is very competitive and the
overall profitability position of company is impacted by this particular factor. The market is
dominated by small number of large group of ownership. Total number of competitors of
Shaw communication is less and they comprised of TELUS, Rogers, Bell and Videotron. The
connectivity portfolio of Shaw would be enhanced by the acquisition of WIND which is an
independent provider of cellular phone network (White et al. 2017, p.5). Therefore, it can be
inferred that the degree of competitive rivalry is moderate.
3.2 Supplier
Over the past few decades, significant media assets have been acquired by the
telecommunication player of Canada. However, the benefit of media content and owning of
connectivity is unclear in Canada and incapability on part of organization to own media
contents can results in differences in the services and products offered. Therefore, supplier
has lower bargaining power (White et al. 2017).
3.3 Consumer/Buyer
The bargaining power of customers of Shaw communication is moderate as it is
preferred by the customers not to split their telecommunication services. It is easier for
company to retain and gain customers because of the adoption of industry standard practice.
However, the prevailing competitive pressure and introduction of new devices and services
from the competitors poses a challenge for the company to retain their customers.
3.4 Substitute
The threat of substitute of product and services is intensive because the competitors
are able to offer similar products and services to the customers. It is so because the
competitors of Shaw communication offer products and services capable of equally satisfying
the demand of customers.
3.5 Entry

CASE STUDY ANALYSIS AND REPORT
The opportunity for new entrants in the telecommunication service sector of Canada is
restricted due to the regulation of spectrum of government. Companies are well positioned to
offer discount to customers for subscribing to the range of connectivity services which makes
it difficult for new entrant to compete in the initial stage. In addition to this, it is required by
the telecommunication companies holding media assets to provide equal access to the owned
media content which makes it difficult factor for new entrants. Therefore, threat of new
entrants is intensive (White et al. 2017).
3.6 Overall strategic impact
From the analysis of all the five forces of porters, it can be inferred that major factor
influencing the profitability of Shaw Communication is the competition from its rivalry. It is
also required by the company to swiftly respond to changes in the needs of customer by
identifying the change in trend.
4. Factors driving change and their impact
4.1 The media and connectivity industry is changing dramatically because of
widespread high speed access of internet to the homes and increasingly to the mobile devices
of consumers. Due to this, most of the companies are holding media assets that help them in
gaining an equal access to their owned media contents.
4.2 The intensive applications of bandwidth have resulted in growing demands of
consumers for greater bandwidth and access to higher speed internet. There is significant
increase in the demand of telecommunication services because of increase in demand for the
bandwidth that helps in delivering data intensive services such as photo sharing, web
browsing and video streaming (White et al. 2017, p.5).
4.3 The household is solely relying on the wireless phone services and heightened
competition has significantly affected the market of wireless phone market. In change of the
industry trend of the telecommunication services, the company is employing a pure play
connectivity that helps company in offering a complete range of services along with
substantial increase in the wireless services (White et al. 2017, p.7).
From the analysis of the drivers of industry change, it can be observed that the Shaw
communication shifting to providing broader range of wireless services would align the
business growth with the growth in demand for such services. It would be profitable for the
company to adopt the approach of pure play as it would help in incorporating the strategic
impact of the drivers changing the industry.
5. Key success factors
5.1 The Go Wi-Fi initiative of Shaw communication has helped in enriching the
customer service as it offered an alternative to rely on the mobile data services that are
expensive. The internet subscriber of Shaw at no extra charge had an access to approximately
75000 access points (White et al. 2017, p.3). It was expected by the company that the
introduction of such initiative would be a differentiating factor competing with bundling and
price
5.2 Strong growth was witnessed by Shaw from the home phone product with total
number of subscribers for the product reaching to 1.38 million in year 2014. This added to the
revenue generation of Shaw Communication.

Market share
Price
High
Low
High
Videotron
TELUS
Roger
Shaw
Bell
CASE STUDY ANALYSIS AND REPORT
5.3 The purchasing of Canwest Global communication Corporation by Shaw
communication made later a vertically integrated company that help in delivering customers
through the connected platforms and creating contents. Such acquisition has helped in
accelerating revenue generation.
6. Strategic group map analysis
6.1 This section provides depiction of how the industry rivals are positioned with the
help of strategic group mapping.
Strategic positioning of telecommunication companies:
(Source: created by author)
6.2 The rivals are positioned in terms of market share and the pricing of the products
they offer to the customers. Roger has built its own media assets which has made it a largest
publishing company of Canada. Across most of Canada, TELSUS shared cellular network
coverage and emphasized on providing customized service that lead to increase in price of the
products and services offered (White et al. 2017, p.7).
6.3 From the analysis of case, it can be said that the companies are well positioned in
terms of subscribing to range of connectivity services. Merging of Shaw Communication and
Corus would result in holding the share of English television that is comparable to Bell
Canada and such deal has significant potential revenue synergies.
7. Company outlook based on the assessment of the industry
7.1 Impact of macro forces on company