Businessmodel of Shaw Communications

Customer Segments

Shaw serves both retail and institutional customers, with different services being provided to both group. It splits its offerings into 4 categories: Consumer, Media, Business Network Services, and Business Infrastructure Services. The former two primarily serve consumers while the latter two serve businesses.

• Consumer – Provides telecommunication services for retail consumers over broadband internet, public WiFi, video, and phone. Delivers both conventional and specialty video content to retail consumers over television on online media channels.
• Business – Provides telecommunication and media services for businesses, similar to services provided to retail consumers, and IT solutions including colocation, managed services, cloud computing and security and compliance. Also serves companies in the USA. ### Value Proposition

Shaw’s value proposition varies according to its target customer and provided service.

• Consumer – Shaw is one of the largest residential telecommunications service providers in Canada. They have a customer-centric strategy and thus provide trusted services to consumers. Due to their scale, they are also able to provide integrated services at lower cost and higher quality to consumers.
• Media – Shaw provides a significant amount of conventional and specialty content, with over 10,000 titles and 550 digital video channels. Shaw is cognizant to consumer demand and has introduced more targeted and flexible packages for their video and television products. Shaw has also taken advantage of technological advancements in television programming, offering its consumers an interactive on-screen service and the ability to record and store television programs.
• Business Network Services – The value here is in the service that Shaw provides that is targeted specially toward small and medium enterprises. Shaw provides IT advisory services to these companies, offering to scale up their offering as the company grows. They also work with global partners to offer flexible and convenient business communication solutions.
• Business Infrastructure Services – Through ViaWest and AppliedTrust, Shaw provides dedicated, tailored, flexible, and reliable service. Its subsidiaries are also well-known and trusted brands in the regions that they operate in. ### Channels

Shaw maintains both physical and online sales avenues for retail clients. For institutional clients, Shaw relies on tailored services, it thus provides quotations over the phone or in person at one of its offices.

Customer Relationships

Shaw maintains close customer relationships by providing for dedicated customer services, particularly for corporate clients. For retail clients, Shaw runs call centre operations to meet customer expectations.

Key Activities

Shaw’s key activity is the research, production, and operation of telecommunication infrastructure and services for retail and institutional clients.

Key Partners

Shaw partners with other service and content providers to either expand its content selection or coverage.

For the former, one example is its joint venture with Rogers Communications to provide Rogers’ subscription based video streaming, called shomi, to all Canadians.

For the latter, one example is its tie-up with Comcast to provide Canadian consumers with access to Comcast’s cloud-based X1 platform.

Key Resources

Shaw’s key resources are its technology, its infrastructure (most notably its cable and telecommunications distribution system), its intangible property (i.e. broadcast rights and licenses, trademarks, brands, and program rights), and its goodwill.

Cost Structure

Shaw’s most significant expense is the purchase of goods and services, most notably on video programming for its Consumer, Business Network Services, and Media segments. Its second-most significant expenses is on employee salaries and benefits.

Revenue Streams

Shaw’s revenue comes from its four business segments:

Source of Revenue/Cost Revenue (FY 2015, million CDN) % of Total Revenue Revenues 5,488 100% Consumer

3,752 68% Business Network Services

520 9% Business Infrastructure Services

246 4% Media

1,080 20% Purchases of goods and services (2,174) -40% Employee salaries and benefits (987) -18% Amortization (895) -16% Operating income 1,432 26%