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Rogers Communications – Competition
Rogers Communications has several competitors in their market. Telus and Bell Canada are the major competitors in communication market. Especially Bell Canada, since they provide the similar services in the market, like Internet Service, Home Phone, Cable TV and Wireless Service. Although there are several competitors in the market or some competitive disadvantages. Rogers is still the majority choice for the market, because Rogers has many dealers around the nation, it also offers diversification and provides the best network.
Rogers communications has respective competitive disadvantages in the market, like new entrant to the market and Bell and Telus as their competitors. First of all, Ted Rogers died has led the change of position between Rogers and Bell Canada Enterprise (BCE). Rogers has a controlled ownership with 15 trusts, and it is hard for 15 people to control the ownership of Rogers. Rogers will become “a less audacious, less aggressive, less adventurous company” (Wahl). Rogers would not face the immediate crisis, because of their brand name and the network. They are the most valuable assets for Rogers. Next, there will be new entrants to the communication market. Rogers' pricing is more expensive than the other. The new entrants put some price pressure on Rogers. This is because their target market is discount the brand Fido. The new entrants offer cheaper plan and without system access fees which attract low-margin consumers. “Rogers and Bell have lowered their prices on discount brands and dropped those services' system access fees” (Ramsay). The new entrants are not only Rogers' competitors, they are also Bell and Telus. Especially Bell Canada because they offer similar products and services. Bell has offer bundle services, as the customer will receive a discount if you combined all the service from Bell. Telus and Bell also have discount brand Koodo and Solo. Since the network Bell and Telus are using Code Division Multiple Access (CDMA), they cannot offer what Rogers could. They started and joined together to upgrade their network system into faster fiber network. This can led both of them “to catch up with Rogerss advantage in selling hot devices such as the iPhone and BlackBerry Bold” (Wahl). Telus and Bell tried to break through Rogers' iPhone Monopoly. Telus and Bell offer cheaper plan with more services, like data transfer. This gives pressure to Rogers, they need to price down in order to retain existing customers. Bell and Telus also focus on new range of smartphone. In addition, the most important is Bell and Telus have equal network system with Rogers. Not only Bell and Telus upgraded their system, but also other telecommunication wanted to upgrade and build a new network system. Rogers has these competitive disadvantages, as their price for the services are more expensive than other competitors.
Rogers also have several competitive advantages in the market, which are their system, diversification of service, and lot of dealers around the country. All the dealers are located in convenient location, easy for customer to access. Rogers also provide Chinese Dealers, which can attract more targets. Moreover, Rogers offer diversification on the market. They did not only focus on high margin consumers, they also concern about low margin consumers. Therefore, they have discount brand in the market, Fido, which give consumers alternative choices. Rogers understand in the market that there are price conscious consumers, and they know those consumers are not satisfy to their Rogers Plan. Therefore, Rogers co-operate with Fido, to attract the low-margin price conscious or consumers Last but not least, Rogers has the better network system than other competitors. Rogers is using the Global System for Mobile communications (GSM). Rogers is more advance on the network system compare with Bell and Telus as they are using CDMA. This is because “when all of the new handset manufacturers came out with the latest and greatest equipment, it came out for GSM first” (McClearn). And CDMA always happened in later situation or not at all. Most of the country are using GSM, and the consumers can use wireless service world wide. Because the advance of the network, they have already “earning more revenue, on average, from each wireless customers than either of its two major rivals” (McClearn). Although Bell and Telus have upgrade their system, but the market would not turn things upside down in one night. Bell and Telus only can earn little bit from the iPhone, because Rogers had already monopoly iPhone for two years. Rogers has already attracted of those who really want iPhone. Rogers is smart, as they need the consumer to sign a contract for 3 years, if they want their iPhone at the discount price, or they will need to pay the full price. At the end, these are the competitive advantages for Rogers, compare with other major rivals.
In conclusion, Rogers is still the leader in the telecommunications market. It is because Rogers has competitive advantages in the market. Although there are major rivals in the market and they have upgraded the network system. Since their network system of Rogers choosing have the advance, they already earn more revenue than the other. In order to keep the leadership in the market, Rogers need to upgrade their system and the technology to retain existing customers.
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