Bce Inc.

BCE INC.

Case Analysis

Submitted by: Matthew Kelenc

212174678

FINE 4150

Professor Rod Pamenter

Due: Tuesday October 20th, 2015

Executive Summary

BCE Inc. is one of Canada’s largest communications companies that provide comprehensive services to residential and commercial customers. The company has evolved into a conglomerate by acquiring many subsidiaries and non-core assets. Although these acquisitions provided some benefit to the company, they often take away from BCE’s core operating segments. These key business segments included Bell Wireline, Bell Wireless, and Bell Aliant. The Bell Wireline segment is responsible for providing local telephone, long-distance, and data to clients primarily located in Ontario and Quebec. Bell Wireless offers wireless voice and data communications products to customers across Canada through multiple recognizable brands. The last segment, Bell Aliant, provides these wireline and wireless services to customers located in rural Ontario and Quebec, along with the Atlantic provinces. The overall size of BCE Inc. provides the company with a sense of financial security due to their involvement in different segments of the telecommunications industry. On the other hand, the large size of the conglomerate proves to be an issue in regards to reaction time, as the telecommunications market begins to shift. The overall industry began to recognize decreasing demand in the traditional wireline segment, and an increase in the wireless segment. This shift caused competitors, such as Rogers Communications and Telus, to shift their operations focus to the new high-growth area. BCE failed to capitalize in these growth areas because they were at a disadvantage when compared to their competitors. Rogers operated on a superior wireless platform, and had a stronger wireless spectrum. Telus had strong brand loyalty in western provinces that made it difficult for competitors to enter successfully into this market. BCE is...