Analysis of Corporate Strategy and Business-Functional Strategies of Rogers Communications Inc

Analysis of Corporate Strategy and Business-Functional Strategies of Rogers
Communications Inc
Company: Rogers Communications Inc. (Telecommunications industry)
By: Madawi Abunayyan #0510024 ([e-mail])
Majed Abunayyan #0478092 ([e-mail])
Gillian Snelling #0580580 ([e-mail])
Meghan Timewell #0587823 ([e-mail])

Table of Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
Part IV - Corporate Strategy............................................................................................................5
Part V - Business-Functional Strategies........................................................................................12
Business Strategy using Porter’s 4 Generic Strategies..................................................................12
B. Problems within the Company’s Business Strategy.................................................................14
C. Strategy Recommendations and Rationale...............................................................................17
Summary........................................................................................................................................21
References......................................................................................................................................22

Executive Summary
Rogers Communication Inc. Corporate Strategy Analysis is presented in two categories
which is the corporate strategies and business functional strategies. The corporate strategies are
looked at in vertical locations which explains that Rodgers communication is both mid-stream
and downstream. Horizontal location looks at the 4 sectors that produce revenue and the multiple
synergies that can be found primarily between cable and wireless. The geographic diversification
shows the geographical areas Rogers Communications cover with in Canada. Rogers
Communications analysis looks at how Canadians are gearing toward entertainment that grants
them full control of what they are watching for example like Netflix and Hulu.
Recommendations of the business is leaning towards streaming services to allow their consumers
to be in full control of their entertainment due to the shrinking demands for cable services.
Business functional strategies analysis uses Porters 4 generic strategies. One, the cost of
leadership which is key to emphasizing on the prices of lowest cost producers and profit margins.
Two, the cost focus on aiming for low cost advantages in only small market segments. Three,
differentiation focus focus’s a small market segment to enable customers to obtain different
needs and wants that is not offered by existing competing firms. Last, differentiation leadership
involves changing product pricing, branding, and adding features to differentiate from other
competing firms.
This analyzed section goes over the goals, mapping out actions and areas that need improvement.
Including new ideas such as integrating effective technology. Aspects to the opportunities in the
external market is examined using SWOT analysis. Examining the strengths, weaknesses,
opportunities, and threats including factors that favour the growth of the firm. Going over the
term “stuck in the middle” situations and its difficulties of overcoming new business models

fronted by rivals in the market. Correctly solving value chain weaknesses and clarifying the
weakening value chain which can create inefficiency in the firm. Examples of recommendations
are represented in the analysis are including approaches such as adopting teamwork approach’s
in the identification and analysis of activities in the value chain and identifying the value of
added services and differentiation activities for improvement customers' value. If value chains
are followed efficiently this may maximize the profits even in a slowly growing market.
Introduction
Rogers Communications Inc. is a diverse telecommunication company. Rogers divides its
business between 4 segments. The first is Rogers Wireless, reaches 96% of Canadians with their
LTE network (n.d., 2017). This segment offers postpaid and prepaid services, along with the new
devices that are on the current market (n.d., 2017). The second and third segment is Rogers
Cable and Rogers Business Solutions the combination of these two segments provide “high-
speed internet access, television, phone, and advanced Wi-Fi services” (n.d., 2017). The fourth
segment is Rogers Media this segment is responsible for “sports entertainment, television,
publishing, and radio broadcasting.” (n.d, 2017). Rogers Media is investing its money in content
that their customers want and making sure that the customer can view the content on any device
(n.d., 2017).
Within this report, we will be looking at Rogers Communications Inc. Corporate Strategy
and Business-Functional Strategies. From the analysis of these strategies as a group, we have
created a list of recommendation for each strategy. That we believe will help them continue on
their current track and to improve the company.

Part IV - Corporate Strategy
Current Corporate Strategies
Vertical Location
Rogers Communications core business is their wireless segment. As seen in Figure 1.1
we can see that the wireless section is responsible for 58% of Rogers Total Revenue. From
looking at Figure 1.2-1.3, we can see that the wireless sector has increased by a percent every
year since 2015 and the cable sector has decreased by a percent every year, while the media and
Business Solutions percentage of revenue have remained the same for the past three years. The
increase in Wireless and decreased in Cable is most likely due to the rise of people removing
cable from their homes and going for the more popular streaming options. That has been gaining
in popularity for the past few years. Within the vertical location, their Rogers is both a mid-
stream and downstream business. It is a mid-stream business because it a leading distributor of
its services that they bundle together with other products from their different sectors to optimize
profit. Though it is also downstream because it sells products from other companies (e.g., Apple,
Samsung, etc.).
Figure 1.1: Rogers Communications Inc. 2017 Operating Revenue broken down into its four segments of operation. Retrieved
from Rogers Communications Inc. 2017 Annual Report.

Figure 1.2: Rogers Communications Inc. 2016 Operating Revenue broken down into its four segments of operation. Retrieved
from Rogers Communications Inc. 2016 Annual Report.
Figure 1.3: Rogers Communications Inc. 2015 Operating Revenue broken down into its four segments of operation. Retrieved
from Rogers Communications Inc. 2015 Annual Report.
Horizontal Location
Rogers Communications Inc. has four main sectors that produce its revenue. The biggest
is Rogers Wireless, followed by Rogers Cable, Rogers Media, and then Rogers Business
Solutions. Within the NAICS classification, Rogers is primarily under the 51 Information and
Cultural Industries (Statistics Canada, 2017). The company also falls within the 44-45 Retail