Case Study Shaw Communications Inc

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Shaw Communications inc.- Company Profile
Founded in 1966 and based in Calgary, Shaw Communications is a Canadian telecommunications company that provides telephone, Internet and television services as well as mass media related services. The Company operated through three principal business segments such as Cable, consisted of cable television, Internet, Digital Phone and Shaw Business operations. Satellite, consisted of direct-to-home (DTH) and Satellite Services. Lastly media consisted of television broadcasting. Shaw Media operates as conventional television networks in Canada, Global Television, and numerous specialty networks. It provides customers with entertainment, information and communications services, utilizing a variety of distribution …show more content…

Third quarter revenues improved by 1%, over the same period last year, and operating income increased by 3%. During this quarter they invested in Shaw Go WiFi, which provides users with carrier-grade Internet connectivity at approximately 65,000 hotspots. At the end of May they had over 660,000 Internet customers registered on the network connecting over 1.8 million devices.





SWOT
Strength 1. .Strong customer base - Shaw has about 2.5 million basic cable subscribers, nearly
2. million Internet customers, and 1.2 million digital telephone users
3. Shaw Direct provides direct-to-home satellite programming to more than 900,000 subscribers - largest in the country
4. Owned cable system in United States
Weakness 1.High staff turnover can hurt Shaw Communications ability to compete
2. Operations are heavily dependent on Western Canada which is going through economic downturn(oil situation)
3.Promotional offers, or Limited Time offers apply to new customers only
Opportunity 1. Launch wireless (i.e. cellular) network covering other demographics
3. Acquire and takeover other television …show more content…

Their satellite TV division reaches almost a million homes across Canada. Shaw Communications, with its specialization in Cable and Satellite TV, has a very solid market base in Western Canada, especially now, with the purchase of the Winnipeg –based Canwest Global franchise. This characteristic is a major competitive advantage against the other three telecom giants. Shaw has been trying very hard to expand its services into the high speed internet and wireless communications market in order to compete with the other three major Canadian telecom companies, and this pathway has seen varying degrees of success. Although this company specializes in the cable and satellite T.V sectors, it is not a big competitor in the mobile industry, where there is more money to be made. Shaw is also not at the top of the list in terms of its dividend payouts. This affects interested investors as there are other higher dividend distributers which may be more attractive. Another negative point which affected Shaw’s profits in the first quarter of 2015, was the introduction of Shomi video streaming platform, in partnership with Rogers. Shaw recorded a $13 million equity loss in the start up of this programming. Shaw has also been losing customers due to comparable products from companies such as Netflix and web sites such as

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