Strategic Management of Shaw Communications in Telecommunication Industry

This document discusses the strategic management of Shaw Communications in the telecommunication industry, including external analysis, dominant economic features, Porter's Five Forces analysis, driving forces analysis, key success factors, strategic group map analysis, industry life cycle, and company outlook.

Running Head: STRATEGIC MANAGEMENT OF SHAW COMMUNICATIONS IN
TELECOMMUNICATION INDUSTRY
STRATEGIC MANAGEMENT OF SHAW COMMUNICATIONS IN
TELECOMMUNICATION INDUSTRY
Name of the Student
Name of the University
Author Note

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Appendix
External Analysis
1.0 PESTEL
1.1 Political
1.1.1Institution of pick ‘n’ pay policy: Changes in the policy CTRC, which requires BDUs
for providing basic “skinny” package of the channels of television and allowing the
consumers for purchasing content of media based on channel-by-channel. This policy has
affected the revenue of BDUs.
1.1.2Owning connectivity and media content: There was the requirement by the Canadian
Radio-television Telecommunication Commission for the companies of telecommunications,
which held the media assets for providing equal access to their content of their own media
from all the other providers of telecommunications.
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1.2 Economical
1.2.1 Market concentration- It has played important role in the services of the connectivity for
rising the bundling. The impact of this has increased the bundled services from the subscriber
of 8.8 million to 10.4 million.
1.2.2Market penetration: Canadian market penetration of wireless connectivity was 82
percent approximately of the total population and it was expected that it would grow to 1.4
annually. The average Canadian household has spent $203 per month on the
telecommunication services. The change was due to increased spending of wireless and
internet thatwas grown to 14% from 10%.
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1.3Social
1.3Shift in demand: Changes in the spending on the Internet services and wireless has grown
by 14.1 per cent, which are driven by the demand for the bandwidth for delivering the
services of data-intensive such as video streaming, game playing, photo sharing and web
browsing.
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1.4 Technological
1.4.1Flexibility in Media: Advancement of the technology has enabled the consumers for
viewing their choice of content when and wherever they wanted to see.Every year subscriber
of technological services is increasing.
1.4.2Access to Mobiles and tablets: With the help of cellular network connectivity and Wi-Fi
has enabled the viewers for watching the video through mobile phones and tablets.
___________________________________________________________________________
1.5Legal
1.5.1Legal implication on the industry: As of now, there is no such legal actions have been
taken by the country’s judiciary system. However, companies need to plan their strategy in

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such a manner that, any legal changes by the judiciary of the country in this sector will have
minimum impact on the companies operating in this industry.
___________________________________________________________________________
1.6 Environmental
1.6.1Climatic Condition: There may be the impact of climate change in the network issues
and connectivity. Hence, companies need to be prepared for the same.
___________________________________________________________________________
1.7 Strategic Implications
1.7.1 The increase in the average spending of the Canadian household of $11.92 per month
has enhanced the telecommunication sector for investing in the wireless and internet services.
1.7.2 Changes in the preferences of the consumer have resulted have increased the demand.
Technology advancement by the industry has enabled to consumers to see the content they
want, anytime and anywhere.
1.7.3 Discounts given to the consumers for subscription to their connectivity services have
increased the revenue of the companies.
1.7.4 Launching of the OTT services such as Netflix and the platform of connectivity such as
Apple TV and Chrome cast have attracted the viewers of cable TV.
2.0 Dominant economic Feature Analysis
2.1 Market Size & Growth
2.1.1 Increase in the spending of $203 per month on telecommunication services has
increased to 6.2 per cent which $11.92 per month.
2.1.2There has been increase in the expenditure on the wireless as well as Internet services
from 10.0 percent to 14.1 percent.
2.2 Buyer Requirement & Needs
2.2.1 The Canadian market penetration of wireless, which was 82 per cent of the total
population, is expected to rise annually 1.4 per cent.
2.2.1 The total number of the subscriptions of the connectivity services has been increased
from 8.8 million to 10.4 million.
2.3 Technology & R&D
2.3.1The advancement of the technology has increased the use of tablets and mobile phones
with cellular network connectivity as well as Wi-Fi connections.
2.3.2 The policy of pick ‘n’ pick policy by CTRC has increased the revenue of the BDUs,
which passes through the channels of the media specialty.
2.4 Economies of Scales
2.4.1 With the help of increase in the revenue from the consumption of cellular data, there is
greater access to the public Wi-Fi, which has moderated the growth of the revenue.
2.5 Scope of Competitive Rivalry

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2.5.1 Market of Canada in the consumer telecommunication is dominated by the large
ownership groupsin small number.
2.5.2 84 percent of the revenue of the industry is accounted from the top five groups, which
consist of Rogers, Bell, Shaw, TELUS and Videotron.
2.5.3 Market concentration and penetration have helped large players to expand their services
and earn revenue.
2.6 Strategic Implications
2.6.1 The market for the demand of telecommunication services has increased the scope for
major players to provide the services in accordance with the needs of the consumers in order
to earn more revenue.
2.6.2 Large players of the industry were well-positioned in order to provide the discounts for
the subscription to their services.
2.6.3 The new technology of cellular and internet Wi-Fi have provided fastest transmission of
data, which reaches consumer and their devices more quickly.
3.0 Porters Five Forces
3.1 Barriers to Entry- Low
Industry Attractiveness: Attractive
3.2.1 Economies of scale are achieved by the increase in the revenue across the industry.
3.2.2 Product Differentiation is achieved by the companies, which provide services of high
speed with less price.
3.2.3 High switching cost because consumers may be tied to the contracts.
Supplier’s Power
3.3.1 There is no supplier’s power applicable for this industry.
Buyer’s Power
3.4.1 Consumers prefer the company, which provide faster speeds of data communications
with reasonable rates because different packages is available with different rates..
3.4.2Increase in the number of companies and increased the options for the consumer to buy
the services from other company.
3.4.3 Access for the information is high with the buyers hence it increases the bargaining
power.
Threat of Substitute products or services- Low
3.5.1In the industry of wireless, there is no any option for having substitute; it is because of
the medium of exchanging the information is through Canada post.
3.5.2 The limit of the industry’s potential return is not done by the substitute.
Threat of competitive Rivalry- High
3.6.1 Market is dominated by major players such as Bell, Rogers, TELUS, Shaw and
Videotron.

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3.6.2 Low growth of the industry, increase in the competition has increased the new
subscribers.
3.7 Strategic Implications
 High competitive rivalry makes the industry more attractive, as the new competitions
are emerging which makes it appealing.
 With low threat of substitution and low barriers of entry economies of scale is
achieved which reduced the cost of operation and alternatively services is provided at
less price.
4.0 Driving Forces Analysis
4.1High speed internet and increased connectivity
 The growth in the demand for the mobile phones with huge demand for the wireless
network, mobile data and high speed.
4.2Over the Top players
 The new players in the industry are riding the waves of digitally connected, anywhere
anytime as well as creating the valuable ecosystem on the top of communication
infrastructure and networks.
 There has been increased adoption of the services of OTT such as Netflix and the
connectivity platform of Apple TV and Google Chrome cast.
4.3 Social and Cultural changes
 Shift in the preference of the consumer from traditional TV to wireless network has
led to entrance of many players in the industry.
4.5 Conclusion: Hence, it is concluded that there is great scope for the company in this sector
for remain profitable, successful as well as remains competitive.
5.0 Key Success Factors Analysis
5.1 Market Position
 The presence of the company and its dominance depends upon the size of the business
and market share in every segment of the business by number of subscriber,
connection times and so on.
 There would be less resistance to change if there any unfavorable business
environment occurs.
5.2 Diversification
 Creating products differentiation and revenue from different segments and the
geographical areas will enhance the stability of the company’s revenue.
5.3 Operating Management
 Rapid advancement in the technology and the current trends of the market has helped
in the efficient activities of the business.
5.4 Quality Services
 It is reflected by the technology for the service, which enables timely and speed
delivery, network coverage areas for the services, which determine quality and access
to the support of their customers.

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5.7 Conclusion: Hence, it can be concluded that companies will perform well and remain
hold key position in the industry if there will be proper implementation of the key success
factors.
6.0 Strategic Group Map Analysis
High
Low High
Figure: Strategic Group Map Analysis
X axis denotes Service Quality and Y axis denotes Market Share
 Best Spot:Quadrant 2 denotes that the company TELUS has established itself in the
position where there is high service quality with high market share which helps in
meeting the needs of the consumers as well as the targets markets.
 Fail Spot:Quadrant 3 denotes the companies, which have failed in limiting the
revenue. There is low service quality as well as low market share.
 Desired Spot: It denotes the companies, which have high service quality, whereas low
market shares. Service quality is more desired by the customers that in long run
enhance the market shares of the company.
 Strategic Impact of current position:There are the companies, which have the market
share but they do not have the good service quality, which may influence the
company’s position. However, with the changing needs and preferences of the
customers, company is trying to gain more quality, which enhances the market shares.
Shaw is in the position of Cash cows.
7.0 Life Cycle
 Industry Life Cycle Stage: Growth
 The top five players of the industry such as Shaw, TELUS, Rogers, bell and
Videotron have gained 84 percent of the total revenue of the industry.
 The rapid changes in the preferences of the consumers, internet division of Shaw has
outplaced the other divisions of 1.77 million subscribers at the end of fiscal year 2015.
 The consumption of the video content from the providers of OTT and other services
of Internet-streaming has been increased.
 Rogers was first who delivered Internet with high speed over their CATV network.
Ithas earned $2.1 billion from the content of the sports. It was the largest provider of
the wireless services with extensive high-speedwireless network data, which reached
93 per Canadians.
Telus
Bell
Rogers
Others
Shaw

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 TELUS has invested in the improvement of its core infrastructure the amount of $30
billion. They offered the subscribers, content oftheir choice and paying the fee to the
owners such as Rogers, Corus and Bell Media.
 For enhancing the demand of the service provider, companies are constantly
increasing their service quality by doing more investments in the increasing their
infrastructure either by investment through their capital or by acquisitions.
 Economies of the scale has been achieved by the reducing the cost for increasing the
profits.
 For achieving higher market shares, companies in the industries are more reliant on
the acquisitions and merger.
8.0 Company Outlook
8.1 Macro Forces
 Shaw’s acquisition with ViaWest has provided a growth platform for the services of
data centers as well as cloud services for the business consumers as compare to other
competitors.
 Increase in the consumption of the telecommunication services in Canada. The
increase of that has derived due to spending on the services of internet and
wireless.The only product for the consumer product of the company was Internet
product, which was driven by the demand for the mobile data services such as
browsing, video streaming, playing games and sharing photo.
 Shaw has provided their Internet subscriber Wi-Fi access points outside their home in
the public areas which was an alternative to expensive mobile data at no extra charge
as compare to competitors in the industry.
 The driving forces for the industry was OTT, Faster and Quality service and Wireless
communications.
 The intensity of the competition is high because market is growing with the top
players and still new competitors are looking to invest more in these
services.However, Shaw with the acquisition of WIND will leverage the existing
backbone of network for gaining and retaining the customers with the standard set by
the industry.
 For maintaining the competition in the industry of Canada, companies are providing
better services in their connectivity, which Shaw has to strategies.
8.2 Company fit with the economics traits
 As per the industry, if Shaw has toinvests $250 million for upgrading the current
services that will increase the subscriber of WIND up to 940,000, which will be threat
to other competitors.
 Many of the content, which was popularly viewed,were originated in United States.
Large media companies of US have been combined with the connectivity companies.
Hence, many parts of the popular content werebeyond the reach of companies of
Canadian telecommunication companies.
 Market penetrationis expected to grow annually by 1.4 per cent, which will benefit the
companies in the industries.
 Acquisition of WIND by Shaw will be most strategic decision, which will benefit the
company in terms of low price as WIND has been benefited from the regulator,and
government, which favored more competition in the mobile market of Canada as
compare to other competitors who does not have the privilege of this.
8.3 Profits Margins

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 The revenue of the Shaw media has been remain stable because the acquisition of
WIND was in line with the trends of the industry which results in increasing the profit
margin by achieving economies of scale.
8.4 Competitive Advantages
 As compare to other competitors such as ROGERS, TELUS and Bell, Shaw has the
strong base of the consumers which will be regained by the enhancing the
connectivity network in accordance with the market trends.
 Shaw has the strong financial position, which will not be affected for the process of
amalgamation as well as to compete with the industry participant.
8.5 Company’s Current Market Position
 As compare to other competitors, Shaw’s revenue from the consumers is $3,752,
operating Income is $1,686 and operating margin of 44.9%.
 The internet division of the company is 1.77 millionsubscribers, which was more than
the competitors were.
 The shares of the Shaw Communication’s Class B were trading between $26 and $28
per shares, which was high as compare to competitors.
8.6 Conclusion
 Shaw Communication is leading towards higher growth in the industry and threat to
its competitors by having the strong base of consumers and strong financial position
to provide the services at economic rate as compare to the competitors in the industry.
Internal Analysis
9.0 Financial Analysis
9.1 Ability to pay bills
Liquidity 2011 2012 2013 2014 2015 CAGR
Cash & Equivalent 443.00 427.00 422.00 637.00 398.00 -3%
Current Ratio 1.12 0.65 0.54 0.95 0.52 -17%
Profit Margin (%) 0.58 1.68 0.60 0.60 0.60 1%
 The cash and cash equivalent shows that the Shaw does not have sufficient cash to
meets its daily operations or any uncertainty.
 Current ratio of the company has also decreased over the years, it shows that the
inability of the company in paying the short-term debt.
 The profit margin of the company suggest that, it has also decreased and constant over
the years. It is assumed to have same situation over the years unless company decide
to strategies for this.
9.2 Capacity to Raise Capital
Efficiency/Leverages 2011 2012 2013 2014 2015 CAGR
Returns on Capital Employed(%) 5.93 6.08 14.66 14.45 13.97 24%
Debt-Equity(%) 42 27 22 26 26 -11%
 It showsthat company uses its equity capital efficiently and gets good return over the
years. The trend of return is increasing and it is the sign of healthy position of the
company.
 Debt equity position of the company shows the efficient use of the equity of the
company for financing of investing activities through the equity.

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 Company has sufficient capital for sustaining its activities for enhancing its value and
growth.
9.3 Competitive Advantage
Profitability 2011 2012 2013 2014 2015 CAGR
Returns on Assets(%) 6 6 7 6 0%
Returs on Equity(%) 4 6 6 7 6 11%
 It shows that the company has no return on the assets, which means the assets are
obsolescence, or of no use now in the changing environment.
 Although CAGR of the Return on the equity is up to the mark but it is stagnant over
the years.
 The value of the company as a competitive advantage is not growing in terms of its
ROA and ROE.
9.4 Implications for Future Strategy
 Current strategy of the company is to enhance growth in the market of
telecommunication industry and acquire the market shares by retaining the customer’s
base.
 Company utilizes its capital very efficiently. Hence, it will be added advantages for
the company to utilize it for expansion in regards to current trends.
9.5 Performance in comparison with the competitors
Shaw Communications (in millions) 2011 2012 2013 2014 2015 CAGR
Revenue 3850 3945 4036 3768 3752 (0)
Marketing Expenses 1959 2036 2022 2092 2174 3%
Net Profit 562 761 784 887 880 12%
Corus 2011 2012 2013 2014 2015 CAGR
Revenue 752 833 815 4%
Net Profit 243 266 253 2%
 The revenue of Shaw is not increasing but their expenses are increasing as compare to
other competitors.Anyhow, it is able to make profits over the years. Corus revenue
has the growth of every year with their net profits.
 During the year 2015, debt to equity and ROE of Rogers is high up to 2.76 and 24.60.
The interest coverage of all the companies is good especially Shaw’s. Cash flow
position of Corus is up to 20.71, ROA of Shaw is 6.05 and EBITDA of all the
competitors is almost same.
 Hence, as compare to competitors, Shaw is experiencing good profit but needs to
focus on its ROA and liquidity position.
9.6 Changes in Financials
 The revenue of the company is increasing with the increasing expenses. However,
company manages to earn profit which shows the positive impact of the overall
margin of the company.
 There is the growth in the short term debt but less reliance to the long term debt of
Shaw.

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Efficiency/Leverages 2011 2012 2013 2014 2015 CAGR
Revenue 4741 4998 5142 5241 5488 4%
Expenses 1959 2036 2022 2092 2174 3%
Net Profit 562 761 784 887 880 12%
Short-term Debt 451 998 608 16%
Long-term Debt 5256 4812 3868 4690 5061 (0)
9.7 Company’s Health
% Change 2011 2012 2013 2014 2015 CAGR
Gross Profit Margin (%) 59 59 61 60 60 0%
Profit Margin (%) 0.58 1.68 0.6 0.6 0.6 1%
 Shaw’s health is remarkable in terms of its revenue and capital position. Hence, it has
been experienced that it is not facing any difficulty in relation with the difficulty of
finance.
9.8 Spreads
Spreads 2011 2012 2013 2014 2015 CAGR
Revenue/Cost 1.7 1.68 1.64 1.66 1.65 (0.01)
Revenue/EBIT 3.66 3.78 3.76 3.64 3.83 0.01
Revenue/Debt 0.5 0.55 0.6 0.61 0.59 0.04
10.0 Quantitative and Qualitative Analysis
10.1 Current Strategy: The Company is making strategy for the acquisition of WIND with the
help of bridge financing. It has the strong balance sheet, which can manage the debt.
10.2 Growth Strategy- STRATEGY SUCCESSFUL
 Purchase of CanWest, which was a Canadian media company for creating content and
delivering through television.
 Acquisition of Via West has provided data Centre services and cloud services for
public sector customers as well as business.
 Partnership with Rogers for providing OTT services.
10.3 Product Strategy- STRATEGY SUCCESSFUL
 Home phone product of Shaw has seen strong growth strategy.
 Go Wi-Fi was alternative to expensive mobile data services
 OTT services have allowed access to the selected television programs and movies on
demand from any platform.
10.4 Marketing Strategy- STRATEGY SUCCESSFUL
 Subscription of satellite has made approx. 30 per cent of total TV subscription.
 Providing wired service of home phone with the Internet protocol switching
technology of VoIP.
10.5 Distribution Strategy- STRATEGY SUCCESSFUL
 Payment of licensing fee to the owners for the rights to distribute.
 Using the same cable distribution network, which connected the subscriber to the
Internet and television.
11.0 SWOT Analysis

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STRENGTHS WEAKNESSES
11.1.1 It has good Customer base as well as
competitive advantage in Alberta.
11.1.2 Stability in Revenue
11.1.3 Acquisition of CanWest Global
communication corporation has made this
company vertically integrated
telecommunications which was renamed as Shaw
Media
11.1.4 Strength of ownership of Shaw
communications and Corus.
11.1.5 Partnership with Rogers for providing
OTT service in the name of Shomi.
11.1.6 Economies of scale from the acquisition of
WIND Mobile.
11.1.7 Best bandwidth service and best debt to
equity and ROE.
11.2.1 Television department have no longer its
largest division.
11.2.2 Changes in the trend and competition have
resulted in the loss of 83,000 customers
11.2.3 Shaw’s media is considered as non-
strategic.
11.2.4 Losing subscribers for the TV services
because of rise in the Bell Technologies.
11.2.5 Not well known in the eastern region of
Canada and services are not available in all
regions of Canada.
OPPORTUNITIES THREATS
11.3.1 Growth in the internet subscriber every
month. Hence, increasing the internet subscriber
with better services
11.3.2 Expansion to all the regions of Canada.
11.3.3 Investing in the improvement of the
infrastructure for improving bandwidth and
mobile network.
11.4.1 Existence of already major competitors in
the market such as Bell, Rogers and Telus.
11.4.2 Regulations by the government, which
may affect the company strategic decisions.
11.5 Strategic Implications
11.5.1 Shaw’s decisions regarding making it “pure-play Connectivity Company”.
11.5.2 Fall of 2015, has explored for the decision regarding how best to construct the
participation of Shaw in the business of Media.
11.5.3 The company’s strong balance sheet has help the company in taking the bridge finance
and handle the additional debt.
11.5.4 Bundling of two or more services would benefit the company in economies of scale
and gaining and retaining customers.
11.5.5 Decrease in revenue from traditional sources of media content has shifted the budget
of the company in OTT services.
12.0 Value Chain Analysis
12.1 Inbound logistics
 The company’s platform for cloud and service of data Centre has provided services to
the business customers.
 Delivery of the internet by the help of fibre-coaxial cable network.
12.2 Operations

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 The operations of the company are remarkable in the field of telecommunication
industry. It is operating in different segment.
12.3 Outbound Logistics
 Acquisitions with WIND mobile network will help the company in providing better
services.
12.4 Sales & Marketing
 Shaw have huge base of customers, which they have built over years. Hence, they
would get the benefit of standard industry practice of bundling of the two or more
services.
 With the help of subscriptions and advertisement to their specialty channels of Shaw
media, revenue was derived from it.
12.5 Infrastructures
 Although company was having great infrastructure for providing the services to the
business, customers and through media. However, shift in demand and preferences
have resulted in investing in the latest infrastructure.
12.6Technology Development
 Changes in the preferences of the clients have a great impact in the revenue of the
company, which has influenced it for upgrading to the latest trend.
 Initiating the service of internet and then OTT.
12.7Cost structure- COMPETITIVE
 Inspite of the intense competition prevailing in the market, Shaw has managed to have
company with good financial health. It has been assessed to have growth in CAGR in
revenue 4%, net profit of 12 % which is in align with that of competitors. It is due to
strong brand value.
 Increase in the marketing expenses denotes more investment in upgrading to the
trends and better services.
12.8Customer Value Perception- COMPETITIVE
 Shaw is recognized as competitive because of its strong efforts in developing its
infrastructure and business in align and better than what competitors is offering with
the help of acquisitions.
12.9Strategic Implications
 Due to decline of the company’s cable television division has insisted the company to
expand its services by taking strategic decisions which could be helpful in running
their business in pace with the market and industry’s trends.
13.0 Strategic Issues
During the years, Shaw has experienced enormous growth in the industry of
telecommunication industry with the profit of CGAR 12% as compare with that of other
competitors. However, changes in the trend of the industry and increased competition have
forced the company to make strategic actions. Following are theevidence, which needs to be
considered by the management:

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 Shaw media unable to perform well in the changing market, which required to takes
decision regarding merger. Before the Shaw communication bought the WIND
mobile services, this segment of the company have not been given weightage. The
question of becoming “pure play connectivity” would be possible by reducing their
media assets, which consist of Food network, HGTV, History and so on.
The question that requires front-burner managerial attention is, whether Shaw Media will be
sold to Corus and become “pure-play Connectivity Company” to remain competitive in the
market?
CEO Report
14.0 Introduction
Shaw communication is the media and Canadian diversified Telecommunication Company,
whichis managedby the CEO ‘Brad Shaw’. The company serves around 1 million of
consumers in the wireless industry of Canada, which is nothing as compare to already
established competitors. The synopsis of this report is strategic management of Shaw
communication in the telecommunication industry. The key competitors and main players of
this industry are Rogers, TELUS, Bell and Corus that influences the market of Shaw’s (7.0).
The finding that is outlined in the appendix is about the merger of two big giant in the
telecommunication sector. Therefore, the strategic issue that needs managerial attention was,
whether Shaw Media will be sold to Corus and become “pure-play Connectivity Company”
to remain competitive in the market?
15.0 Analysis
The above-mentioned issue regarding the merger of Shaw Media assets with Corus requires
managerial attention and is further analyzed in this section. The fastchanges in the
preferences of the consumer have affected the TV Industry drastically (1.7.2). At one point of
tine, Shaw was the market leader in the TV industry but due to shifting of the TV to the Over
the top streaming video services have resulted in the decline stage of the it (1.3). It has been
analyzed that Mobile phones and internet is the fastest growing industry. Industry analysis,
based on the porter 5 and strategic group map analysis, it has been accessed that the service
of OTT is growing which is clearly mentioned in the case. However, the internet industry as a
whole is attractive with high barriers to entry. With the help of SWOT analysis, it has been
analyzed that the company have the competitive advantage in Alberta and by selling it to
Corus the company will have more cash in hand by providing much better and improved
services of bandwidth for maintaining and maximizing the competition (11.1.1).The
competition in the internet industry is very high and Shaw has less known for this as compare
to other competitors. Shomi, which was the product of Shaw, is not working at all (11.1.5).
Instead, investment in the Netflix is worthy for getting the shares and allowing the customers
for using the services with the internet or wireless services. The company is growing from the
analysis of five years with the increase of 2% annually from internet services. It has been
analyzed that from the acquisition of WIND mobile, the company will get the benefit from
the government, which will lead to 940,000 subscribers by the end of the year 2015 (8.2).
WIND mobile operates in the major metropolitan cities of Canada, which uses strategy of
cost leadership strategy. It has been analyzed that price of the internet services of the major
competitors are high.Most of the focus of the TV media of Rogers and Bell was on live sport,
which resulted in high entry barriers for TV media (4.3). It has been analyzed that the
industry’s profit is growing in the internet and cell phone. Hence, if Shaw will acquire
WIND, it will get the benefit of low price for increasing the subscriber in the internet and

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wireless services for increasing the market share (8.2). WIND has low quality services.
Hence, with the help of profit gained from the low cost, company can invest in the R&D
services and can expand the market to Esternsideas well as nationwide and solve the low
quality issues (11.2.5).
16.0 Alternatives
16.1 Alternatives #1
The reasons for selling Shaw Media assets was based on the question of whether this was a
good idea, low trend of TV industry and benefits for owning of media content and
connectivity was not clear because of the regulations of the Canada (11.2). The company’s
media needs to share the owned media with the competitors except for the sports media (7.0).
It leads in believing that there is not much in the play while owning and trying for making
money off to the media assets. Selling to Corus will bring cash as well as shares to the
company, which will be reinvested in the company. The potential disadvantage of it will be
that Shaw Media will miss out from owing media assets for growing and expanding the
company in terms of channels ownership.Shaw media currently is in the position of Cash
cows and is going to be overshadowed with the competitors (6.0). Hence, by selling this
segment of the Shaw communication will convert question mark to propel towards becoming
the star, especially in the segment of internet.
16.2 Alternatives #2
Selling Shaw Media to Corus will infuse cash in hand of the company, as Corus will pay
majority of the amount in cash. Moreover, Shaw has the highest ratio of cash flow to sales
ratio (9.1). Hence, this will help the company in turning the sales of the company to liquidity
and then it would be reinvested in the business of the company into the segment where it
would perform well (9.1). Shaw could try to increase the infrastructure or improve the
existing infrastructure by doing investment in that.If Shaw will invest in the internet
infrastructure, in which there was huge growth in this segment of the company (12.5). Shaw
has already experienced great success in its operations from the Shaw Go Wi-Fi (10.3). There
was great success to the company after launching of this product by the company. Hence, the
company should take the initiative of differentiating factor in the industry, which is
completed by the prices as well as bundling (1.2). Selling of the Shaw Media to Corus will
give stability to the debt to equity of Shaw.
Advantage Disadvantages
 Improvement in the successful
products.
 Acts as the substitute
 This strategy would be in contrary to
the strategy adopted by the other
competitors.
 It will lose its own content for
leveraging its assets of connectivity.
16.3 Alternatives #3
Third alternative would be to do the investment in the research and development of the
company instead of selling Shaw media assets to Corus. It is because with the help of this
investment, internal operation of the company can be improved by the improvement on their
services and the assets instead of sacrificing current assets (12.2). Shaw will be able to
develop new technique for delivering its services to the future as well as current clients. It
will be achieved with the help of financing their equity because it is cheaper than financing
through debt. In addition, sufficient cash available will do additional payment (9.3). Research

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STRATEGIC MANAGEMENT OF SHAW COMMUNICATIONS IN
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and development will also enhance the internet segment of the industry from question mark
to star for the portfolio of the companies.
Advantages Disadvantages
 Investment in the Wireless products
and services will benefit Shaw in the
long run.
 R&D requires more time, effort,
specialize knowledge and money.
17.0 Recommendation
17.1 Selling Shaw media assets to Corus and focusing on the research and development for
improving the speed of the internet such as downloading speed of 1000 MB/s and 900 plus
mbps speed by using tech fiber corders and better modems, which leads in improving the
equipment.
17.2 Selling Shaw media to Corus but hold the licensing deal or second option is to sell
without the Corus sale for being the partner with Corus for providing bundle deal of mobiles,
high-speed internet, OTT (10.3). In addition, improving the cell phones towers by leveraging
the assets to equity ratio and cash in hand for financing the immense projects. Moreover,
continuing providing of the Wi-Fi services to clients (9.3). Hence, after all this, company will
be able for creating cheap package, which can be advertised by social media and other
sources.
.17.3 Selling Shaw to Corus will increase the liquidity position of the company (9.5). The
investment in the infrastructure will be done in Shaw’s internet and cellular segment, which
has consistency in growth. Canada wide is the only; where there is, growth such as money
can go in LTE networks and Wi-Fi network (1.4.2).
17.4 Selling Media to Corus, the sales can be reinvested in improving the services as well as
differentiating their services by providing new services (3.2.2). Of bundling for their current
as well as future customers. It can be done by phasing out the option of landlinefor the future
customers;however, current customer can retain their landline connection until cancellations.
Shaw by offering better bundling will include TV, internet, Mobiles, which will focus on
strategy of low cost for attracting the customers from competitors (1.2.1).

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18.0 Work Cited
Shaw Communications Inc. (USA) Is Becoming a Pure-Play Connectivity Company | The
Motley Fool Canada. (2019). Fool.ca. Retrieved 12 April 2019, from
https://www.fool.ca/2016/02/01/shaw-communications-inc-is-becoming-a-pure-play-
connectivity-company/