SOCIO-CULTURAL ENVIRONMENT

Answer

Socio-Cultural Environment: Telus Communication Company

Telus is a product of the merger between Telus Communications and Telus mobility in 2005. Its headquarters is located in Vancouver, British Columbia. Currently it is the second largest telecommunications company in Canada with 29000 employees. It is a national provider of wireless communications and offers a range of other services including voice, data, and internet protocol. The target population of Telus Company is the working age population both men and women from all provinces and regions in Canada. The social cultural environment including demography, level of education, lifestyles, income and expenditure, as well as cultural and racial orientations largely influence consumer-buying behavior[1]. This paper proceeds to analyze the social-cultural environment of the Canadian population based on the above-mentioned factors to identify how they are likely to affect business.

The current statics estimates the Canadian population at 35,540,400 as per 2013. Immigration is cited as the major source of population growth in the country. Stats projects that the population will continue to grow in the next 50 years to reach 40 million people by 2065 largely because of immigrations[2]. Most provinces will experience population growth with only a few expected to decline including Nova Scotia, Newfoundland, and New Brunswick. Talus focus should be on the needs and preferences of the immigrant customers since they will form the bulk of the working age-population in the near future.  Migrants account for two thirds of the total population increase in Canada. Natural increase is also substantial contributor to population increase although it remains low in some provinces. The proportion of the population that speaks English at home and in the offices accounts for the largest percentage at 71 percent followed by French at 21 percent[3]. This implies that Telus needs also to consider language in its business strategy for these two dominant languages.

Figure1: Growth rate

(Source: Statistics Canada, 2015)

The proportion of the population under the working age bracket is high in Canada. This presents a positive factor for TCC. It implies that the proportion of the population under the category of those with high purchasing power in the country is high and that more people have the capability to buy.  Unemployment is lower compared with the last decade but still high. Unemployment rates are expected to decline in the near future. This will have a positive impact on the business since more people will enter the bracket of those with high purchasing power. However, the share of the population above 75 years is expected to be more than double the present in the next 50 years rising from 7 percent to 15 percent. The country’s dependency ratio will in turn increase from 46 percent to 70 percent[4]. The increase in the aging population is attributed to increasing longevity and the falling fertility rates. This is a negative factor to the business of Telus since the proportion of the population with high purchasing power will decline.

Figure 2: Labor force characteristics

 (Source: Statistics Canada, 2015)

Education is another key factor in the social demographic of the population affecting Telus business. The average level of literacy is very high in Canada and this implies that the operating environment for Talus is that of sophisticated consumers[5]. These consumers present a good market for telecommunication services especially data and voice. The current generation “internet generation” presents a good market for internet services.

Figure 3: Education

 (Source: Statistics Canada, 2015)

Statistics on family income in Canada indicates a good economic environment for business. Families show improved incomes in the last three decades with males having higher incomes than females[6]. This is also a positive factor for Telus in terms of the family expenditure and purchasing power.

Figure 4: Population by economy family type

(Source: Statistics Canada, 2015)

Chinese and South Asian immigrants represent the largest proportion in Canada. Visible minorities are the second largest proportion of the Canadian population[7]. This implies that Telus needs to consider composition f then population in this aspect.

Figure 5: Population projection

(Source: Statistics Canada, 2015)

Ontario, British Columbia, and Alberta are the three provinces representing the largest populations in Canada[8]. Telus focus should be largely on these provinces.

Figure 6: Population by Provinces

(Source: Statistics Canada, 2015)

Statistics indicate that births are the largest contributor to population growth currently followed closely by immigration[9]. Business need to consider how to tap into the various segments of the population.

Figure 7: Components of Population Growth 

 (Source: Statistics Canada, 2015)

The population in Canada is vastly represented in terms of minority groups with over ten diverse groups. These diverse groups represent an important clientele base with varying consumer needs[10]. This can be both an opportunity and a threat to business depending on how well it is addressed.

Figure 8: Population projection, by visible minority

(Source: Statistics Canada, 2015)

The proportion of the people who own houses in the population is high[11]. This implies that the standard of living is high and people’s purchasing power is high. This is a positive factor for the business.

Figure 9: Home Ownership 

(Source: Statistics Canada, 2015)

Socio-cultural factors play a critical role in determining the external environment within which a business operates. In order to compete favorably, a company needs to consider the different aspects of the population they serve in order to identify opportunities and threat.

[1] Beaujot, R. (2009). Canada's Population in Global Context: An Introduction to Social Demography. American Review Of Canadian Studies, (3), 303.

[2] Siddiq, F., & Babins, S. (2013). Trends in Population Growth Inequality across Subnational Jurisdictions in Canada1.Canadian Public Policy, 39S41-S64. doi:10.3138/CPP.39.Supplement1.S41

[3] Barbiéri, M., Ouellette, N., Reeve, P. t., McCoy, J. t., & Dutreuilh, C. t. (2012). The Demography of Canada and the United States from the 1980s to the 2000s: A Summary of Changes and a Statistical Assessment. Population, English Edition, (2), 177.

[4] Goyal Wasan, P., & Tripathi, G. (2014). Revisiting Social Marketing Mix: A Socio-Cultural PerspectivE.Journal Of Services Research, 14(2), 127-144.

[5] Barbiéri, M., Ouellette, N., Reeve, P. t., McCoy, J. t., & Dutreuilh, C. t. (2012). The Demography of Canada and the United States from the 1980s to the 2000s

[6] Goyal Wasan, P., & Tripathi, G. (2014). Revisiting Social Marketing Mix: A Socio-Cultural PerspectivE

[7] Siddiq, F., & Babins, S. (2013). Trends in Population Growth Inequality across Subnational Jurisdictions in Canada1.Canadian Public Policy, 39S41-S64. doi:10.3138/CPP.39.Supplement1.S41

[8] Edmonston, B. (2014). Two centuries of demographic change in Canada. Canadian Studies In Population, 41(1/2), 1.

[9] Edmonston, B. (2014). Two centuries of demographic change in Canada. Canadian Studies In Population, 41(1/2), 1.

[10] Berekbussunova, G. (2014). Social and Psychological Support of the Person during Adaptation in New Socio-Cultural Environment

[11] Berekbussunova, G. (2014). Social and Psychological Support of the Person during Adaptation in New Socio-Cultural Environment