New Telecommunication Suppliers Have Troubles Entering Canada

   As the desire for a fourth large telecommunications competitor to enter Canada emerged, four global companies (AT&T Vodafone, Telenor and Verizon) showed interest. While Canada’s marketplace drew the attention of large telecommunications companies, none of the companies so far, have decide to enter. In fact, Version and AT&T have completely abandoned the notion, claiming that “there is not enough room for four players in Canada.”

The loss of desire to enter Canada’s market, can be analyzed using aspects from Porters Five Forces. One of the largest persuaders against the entry of a new telecommunications company into Canada includes the numerous barriers of entry that Rogers, TELUS and BCE have implemented. These pre-existing companies have launched aggressive public campaigns influencing Canadians to act against the attempted movement. While Canadian telecommunications companies fight off the international competitors with public announcements and influential movements, a large entry fee into the Canadian market and large start-up costs will also influence competitors. A starting bid of $700 million dollars to enter Canada was reported by Verizon before the discussions closed. A large entrance fee and the huge impedance from domestic competitors are barriers to entry that drive away the competition from entering the telecommunication field in Canada.

 

View Article at:

http://www.bnn.ca/News/2013/9/17/ATT-looked-at-entering-Canada-nixed-idea.aspx

 

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Blackberry Excluded from T-Mobile Stores

On September 26, 2013, T-Mobile, one of the largest U.S. wireless carriers has officially announced that it will no longer provide BlackBerry products to its customers from stores. Instead, the company proposes to simply ship phones to buyers. This rash action taken by T-Mobile was justified by the opinion that, “[BlackBerrys] were mostly being bought by corporate customers.”

Throughout September, numerous supply chain issues, and an extremely low demand for the new Blackberry products, crippled the company, driving stock prices down and ultimately forcing Blackberry to cut 4500 employees. In combination with the serve move by T-Mobile and Blackberry’s new plan to specifically target only corporate clients, the company will suffer an extreme decline in market share as well as a continuously decreasing consumer segment. From the beginning, BlackBerry was a company focused on communications within the realms of corporation and large organizations, but in the past few years its points of difference such as security and top-tier messaging have increased its market share within the individual consumer demographic, consequently enlarging the business dramatically. But within the past few months, errors in supply chain management, incorrect forecasting coupled with other factors, have weakened the

company dramatically. The dissolution of a partnership with T-Mobile will only force BlackBerry downwards, until RIM will be sold for merely spare parts (IP).

 

Articles can be viewed at:

http://news.cnet.com/8301-1035_3-57604695-94/t-mobile-to-yank-blackberry-phone-stock-from-retail-shops/

and

http://articles.timesofindia.indiatimes.com/2013-09-26/hardware/42425205_1_blackberry-devices-blackberry-smartphones-blackberry-shares

 

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Next Issue Canada, Bundling for Sucess

      Rogers Media in affiliation with Next Issue Canada is now “bundling,” together more than 100 different magazines from the United States as well as Canada, in a digitized on-line form. All of the on-line release of magazines will be available to all monthly subscribers of the “Next Issue Canada,” application.

The launch of this new medium by Rogers Media affiliate, Next Issue Canada, will allow for lower production costs, due to the

 downloadable nature of products as well as a large base of consumers, produced by the low monthly subscription fees. The service will provide digital monthly magazine issues for $9.99, a fraction of the cost of the same number of printed magazines. While by-products of the new digitalization include a broadened consumer segment as well as, more completive pricing, consequences such as new and increased competition also arise.

By moving into this spectrum of media, Next Issue Canada will become direct competitors with Netflix and other digital media sources. In conclusion, the lower subscription fees, created by lower publisher cost, will broaden the consumer segment as well as enlarge the already existing consumer base, but it will also expose the company to a new competitor, thus risking market exposure and ultimately revenue.

 

View Article at:

http://www.theglobeandmail.com/report-on-business/rogers-to-launch-netflix-for-magazines-with-digital-bundle-subscriptions/article14542318/

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