shaw case solution.docx - Shaw Media sell to Corus for combination of cash and shares

shaw case solution.docx - Shaw Media sell to Corus for...

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Shaw Media; sell to Corus for combination of cash and shares? - connectivity-company/ - shaw-media-corus-entertainment-inc-265-billion-tsx-sjr.b-2087672.htm a. Issue Identification (10%) b. Analysis (20%) c. Alternatives/Recommendation (30%) d. Implementation/Action (10%) Introduction Issue - Should Shaw sell shaw media to corus and become a more “pure-play connectivity company” analysis Traditional TV Industry is in the decline stage. Traditional tv industry is shifting to over the top streaming video services. () Internet and cellphone industry are the fastest growing industry. Market/industry analysis(TV vs Telecommunication) limitation on tv media market for shaw 2.65 million for sales Bell and Rogers have high entry barriers for TV media, most of tv media is focus on live sports, Profit growing in cell phone and internet industry. (invest this) Porter 5 - Wireless (Internet), -Threat of New Entrants: Low Economies of scale due to the cost of infrastructure (broadband infrastructure) Product differentiation, high demand for faster upload and download speeds High switching cost due to clients been tied down do to contracts with other competitors Threat of Substitutes: is low There is no legitimate substitute for the wireless industry the only other means of exchanging information or contacting another person will be through Canada Post. Substitutes do not limit potential returns for the industry
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Bargaining power of buyers: Low Medium to high switching costs due to contractual binding and bundles are highly incentivized by savings Product differentiation exist do to that companies offer different speeds for upload and download at different prices based on the infrastructure they have. Buyers’ information access is high, increasing their bargaining power Product is important to the quality of service and product that the buyers receive Rivalry: High Market controlled by Bell, Rogers, Shaw and Telus Low industry growth, increases competition to gain new subscribers Industry is in the maturity state. Power of suppliers: PESTEL analysis: Political -Change of legislation and blocking Shaw from becoming a pure play -Cable television in the consumers homes was federally regulated Economic: Economic activity regarding connectivity businesses accumulated billions annually Average Canadian household spent approximately $203 per month on telecommunication services, an increase of $11.92 per month over the prior year Socio-cultural: Wireless connectivity services providing more awareness for fitness and activities outside of the home Technological Change in technological demand Technological innovation (staying updated/ or advanced) WIFI access points in public areas outside homes SWOT Strengths: Better resources in alberta, which creates a competitive
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