Rogers Telecommunication - A Proposal Analyzing Paper

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Rogers Telecommunication - A Proposal Analyzing Paper

Word Count: 2450Rogers Telecommunications - A Proposal Analyzing Paper


Company Overview

Rogers Communications (RC) is a diversified communications and media company. It is engaged in providing wireless voice and data communications services. The company, through Rogers Media, is engaged in radio and television broadcasting, televised shopping, magazines and trade publications. The company primarily operates in Canada, where it is headquartered in Ontario and employs around 27,971 people. The company recorded revenues of C$12,186 million (approximately $11,832.8 million) in the fiscal year ended December 2010, an increase of 3.9% over 2009. The company's operating profit was C$2,901 million (approximately $2,816.9 million) in fiscal 2010, an increase of 13% over 2009. Its net profit was C$1,528 million (approximately $1,483 million) in fiscal 2010, an increase of 3.4% over 2009.


The Canadian wireless telecommunication services market experienced moderate growth in 2010. The market predicted to continue growing at a similar rate towards the end of the forecast period. The volume of subscribers forecasts to continue growing at a decelerated rate towards 2015. The Canadian wireless telecommunication services market had total revenues of $17.5 billion in 2010, representing a compound annual growth rate (CAGR) of 9.1% between 2006 and 2010. In comparison, the US and Mexican markets grew with CAGRs of 6.3% and 9% respectively, over the same period, to reach respective values of $159.9 billion and $19.2 billion in 2010.


The wireless telecommunication services market analyzed taking wireless services providers as players. The key buyers will be taken as individual and corporate end-users, and telecoms equipment providers as the key suppliers. A vital driver of wireless service growth is the international consistent demand for communication. This pressure drives mobile communication companies to research and develops ways of carrying more information on frequencies. The velocity with which emerging devices that depend on wireless connectivity such as the Smartphone and the pad introduced into the market is threatening laptop sales, as they become competitive alternatives. The leading substitutes for wireless telecommunications are fixed-line telephony and data communication, also VoIP telephony.

Buyer Power

The wireless telecommunications market is dominated by a large number of buyers, both individual as well as corporate. As players can offer their products and services to many potential customers, value pricing not required maintaining their competitiveness, hence diluting buyer power. This effect offset by the presence of large corporate buyers who can exercise significant financial muscle through negotiating on price; as losing one customer could negatively impact upon a player's revenue. The inelastic nature of demand and move to multiple services should insure the industry as a whole against any significant downturn. However, the uncertain economic outlook will continue to cause people who would otherwise have chosen postpaid contracts before to instead opt for prepaid services. In an atmosphere of obvious caution, brand loyalty could weaken as consumers look for the best deals available, boosting buyer power considerably. However, due to the international consistent demand for communication, the popularity of cell phone services will remain ...
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