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Shaw Deal For Canwest Tv Assets A Content Gamble

719 words - 3 pages

In reading “ Shaw deal for CanWest TV assets a content gamble” by Lain Marlow writing for the CTV news, best describes how ones companies purchase relates to from business to business perspective.
Marlow tells that Shaw Communications has purchased CanWest Global Communications for the amount of $2-Billion dollars. (Marlow) With Shaw purchasing CanWest, using this entire company would be capital equipment. CanWest will be the large equipment used in the production process that requires significant financial investment. (Dwyer 12)
For Shaw to be going into the wireless service they would need to understand the market. Many organizations begin with their vision- the reason why the ...view middle of the document...

Knowing the competition and what they offer will help Shaw develop where others cannot.
Purchasing is a strategic weapon. Value can be increased by delivering more benefits or by lowering costs; strategic purchasing can make contributions in both areas. (Dwyer 27) Marlow says that wireless is not the only reason for the purchases, there are other assets CanWest carry. Shaw picked up CanWest’s valuable specialty channels for a good price. The purchase also gives the ability to monetize the free distribution of programming online. (Marlow) From an outside looking in, this looks like a very strategic purchase, but to accomplish Shaw’s goals they will need strategic marketing to meet their future goals.
Marlow says for Shaw, the expensive acquisition of content remains a gamble as a selling point for wireless devices in an increasingly competitive market. (Marlow) The motive behind the purchase CanWest is so Shaw Communications has the structures to launch wireless by the end of 2011. For Shaw Communications this would be perceived as a financial risk, as well performance risk. The financial risk is with the cost of the new product and with the potential...

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