SWOT Analysis of Rogers Communication Inc.

SWOTAnalysis of Rogers Communication Inc.

TheSWOT analysis of Rogers Communication, Inc. gives an analysis of thecorporations` businesses as well as operations. The profileillustrates a detailed view of the organization`s primary strengths,weaknesses, potential opportunities, and threats.

SWOT Analysis

Strengths

  1. It is the only company that utilizes both HSPA and GSM technologies

  2. Diversified market

  3. It has a diversified business operations across sports, telecom, and media

  4. Being one of the top corporations in Canada, the company boasts of a substantial customer base

  5. Has a depth of creativity

Weaknesses

  1. It has a narrow global presence as compared to some of its competitors

  2. The company is over-reliant on the Canadian market that is almost saturated

  3. Future debt rates could inhibit progress

Opportunities

  1. Venturing into the global markets

  2. Income level is consistently rising

  3. Growing demand

Threats

  1. High competitive pressure from Bell Canada, TELUS, and Shaw Communications company

  2. Changing regulations in the area may affect operations

  3. Technology changes rapidly in regard to wireless telephony

Strengths

Asearlier illustrated, Rogers Communications Inc. is the only companyusing both HSPA and GSM technologies. The aspect draws customers. Theability to provide both these technologies is an integral part of thecorporation

Thecompany also benefits from cutting across different areas i.e.wireless, wireless data and data communications. All these aspectsmake it a unique company that can suit various needs of theconsumers.

Thecompany has a depth of creativity that is involved in innovation. TheRogers Communication Inc. has been a mainstay regarding freshinnovations. Due to this aspect, it has managed to grow substantiallytraversing many areas across Canada.

Dueto its diversified business operations across sports, telecom, andmedia, the company manages to attract various kinds of consumers inneed of their services.

Thesolid customer base champions the company`s success. It is theleading Communication Company in Canada with several branches acrossthe country.

Weaknesses

Thecompany relies solely on the Canadian market. The market iscontinually getting denser and may limit further growth if it attainssaturation.

Thecorporation has confined to no global presence as compared to itsfellow competitors. In other words, the company does not influenceother markets in the globe as it does in Canada.

Asper the liquidity ratio, the company experienced a good current ratioat the beginning of 2014. Since then, the values have been quitesmall. In that respect, the company might face the challenges relatedto debts to meet their needs. There are high chances that thecorporation may be drawn into borrowing in future.

Opportunities

Thecompany would benefit a lot with advancements into the globalmarkets. Technology tends to move fast, and Rogers Communicationcould help from venturing into the international markets as a meansof sustaining and improving the corporation. Additionally, there is alikelihood that markets in Canada could soon be saturated, and thiscould hinder their operations.

Thereis also a growing demand for telecom products and services. Allacross the globe, the extent of telecom growth has been felt and isconstantly rising. The company, therefore, should adjust to thechanges and sustain the growing demands.

Threats

Competitionin the telecom field is quite intensive. The number of new entriesinto the field is consistently growing, whereas some companies arecontinuously developing new technologies. The Rogers CommunicationInc. faces stiff competition from Bell Canada, TELUS, and ShawCommunications Company.

Theregulations and Acts are bound to change with time. Alteration ofActs is a source of concern since it tends to inhibit progressespecially if it involves the customers or the company`s mode ofoperation. Any aspect of the corporation that can be affected by thechange will hinder progress. In addition to that, regulations acrossdifferent countries are constantly changing. If the company was toventure outside the Canadian markets, then alteration of rules mayinhibit its advancements in a global perspective.

Genericstrategies

Thegeneric approaches entail the relation between cost minimization,market focus, and product differentiation strategy. This will providethe generic strategies which the company wants to attain over thecoming years. It brings out the clear picture of where the company isheading.

TheRogers Communication Inc. utilizes a differentiation kind oftechnique whereby it uses real research, development, andinnovations. In addition to that, it delivers high-quality goods andservices that are appreciated by the customers. The company usesunique mechanisms to stay attached to its clients as well as attractnew consumers. For instance, it is the only company using both GSMand HSPA technology. In the telecoms field, one has to stay unique toget an upper hand when it comes to the market perspective. Apart frombeing the only company with that distinctive feature, RogersCommunication provides services in three areas i.e. wireless,wireless data, and data communication. As per the differentiationstrategy created by Porter, a company must have influence over itstargeted market, making effective sales that are somehow differentfrom the competitors. By taking this in mind, Rogers Communicationhas established itself as a leader in the telecom field within theCanadian markets. In addition, one of its 2016 objectives entailsexpanding the sales and invent &quotleapfrog&quot technologiesutilizing the enterprise-grade networks. By doing so, the companyhopes to recapture its leadership in the cable network, as well asmaintain the dominance in Wireless networks. Evidence of thedifferentiation strategy is also embedded in the company`s innovationand development team. The corporation has a propensity of developingnew technologies that are attractive to the consumers. For instance,the launching of the First Wi-Fi Smartphone Service in the Canadianmarkets helped the company in capturing the customers. Advancementsof such innovative aspects continue to propel corporation intobroadening its markets and sustaining its name as the best intelecom. Though it focuses on the Canadian markets, the company canexert competition in the global markets with proper organization. Ithas mastered the dynamics of the Canadian markets making it quitehard for the other companies to outweigh them.

Discussionand recommendations

Evenif the company continuously dominates the region`s markets, more canbe done to improve it. From the aspects drawn in the SWOT, it isclear that Rogers Communication has the potential to advance evenfurther. At this point, some of the features that can be incorporatedto improve the company will be mentioned. In addition to that,whatever the corporation is doing right will be relayed. A successfulcompany must be flexible to change and hungry to expand.

Thecompany has been doing well within the region. Its customer`s base isquite dense, but it could benefit from venturing into the globalmarkets. It should not be limited to Canada and its environs.Regarding technology, it is almost the same across the countries withonly a few differences. Therefore, venturing into internationalmarkets or rather emerging markets could be quite efficient. Othertelecom companies have attained global recognition due to theirability to tap potential markets and offering adequate services. Whenentering a new market, a corporation must learn the own dynamics andadjust the requirements. In that regard, Rogers Communication canmobilize itself to learn other countries market changes and offer itsproducts. Relying on Canada alone can be detrimental especially whenthe market attains saturation. At this juncture, it would be hard toimprove their profits.

Actually,the company has lost ground in the cable network due to fiercecompetition. Such occurrences will be inevitable in future if thecompany does not plan to diversify and enter new boundaries.Statistics have shown a dip in profits. Apart from that, the companyexperienced a stagnant or rather decline in liquidity ratio. By 2015,the values were quite small contrary to the 2014 rate that wasconsiderably good. The statistics evidently depict troubles on costsof goods sold. Though the cost of goods has been increasing, thecompany`s growth has stagnated. The corporation is also doomed tolose its economic stand in the coming years if appropriate measuresare not taken. To alleviate such concerns, the company must increasethe growth of sales which concurs with a reduction in the cost ofgoods and services. At the current rate, the company may find itselfstuck in debts that may require several years to recover. By 2009,the financial reports showed Roger had a debt to equity ratio of1:2.98. The degree keeps increasing yearly posing a great danger tothe survival of the company. In reality, a company that is stuck indebts has fewer chances of surviving in the long-term which is thesituation facing Roger.

Thecustomer complaints have significantly dropped in the year 2016. Itis a good thing considering Rogers Communications Inc. is Canada`stelecom ombudsman. Being totally reliant on the Canadian market, thecompany must ensure customers are satisfied with its innovations. Ascustomer complaint research placed Rogers as the company receivingthe second-highest complaints across Canada. Though the scale wentdown, it still poses a huge threat to the expansion of thecorporation.

Thecompany must be wary of the future alteration of the laws. In manyinstances, governments try to change the rules to satisfy all theplayers in the field. Sometimes, regulations are modified toaccommodate new entries. In the process, existing companies maysuffer especially if the rules involve interests and taxes. In thatregard, Rogers must be well acclimatized to future alterations anddevelop means to avoid sufferings. Though it continues to fight offchallenges from fellow competitors, it does not mean they will stayup forever. Competitors such as Bell are involved in the globalmarkets and can withstand pressures within the region. Through adense network, sustaining any impending forces can be easilyachieved.

Innovationhas no limits. It is the single most important aspect required in thetelecom field. In that respect, much effort should be channeledtowards research and development. The innovation team must be wellfinanced to conduct research and create new technologies to sustainand expand in the current markets.

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