What Is Sirius XM?

5
Strength:
1. Federal have every little rules and restriction on Sirius XM’ broadcast content. Thus, Sirius XM’s can provide various channels to customers, such as news, sports, music, etc, which can attract a number of subscribers.
2. Most geographic area in the United States and Canada are under the clear reception provided by Sirius XM’s orbiting satellites.
3. Sirius XM already had the leading smartphone platforms, because it already published the app through Apple store.
4. The cost of company can be decrease contribute to the merger of Sirius and XM. To be specific, the duplicating costs in investment, service, and advertising can be eliminated. In addition, because two companies can share the technology information with each other,
The subscription fees would like be reduced, because subscribers who both use Sirius and XM before now only need to pay once due to the combination, which decrease the profitably to some extent.
2. Sirius XM have a large amount of debt.
3. Recent years, the retail sales of Sirius XM have been decreasing because the financial depression. For example, the retail sales of car companies that provided devices from Sirius XM have been decreasing, which have a immediate impact of the retail sales of Sirius XM.
4. The profit margins of Sirius XM is very thin. In addition, the earning per share of Sirius XM is low because Sirius XM has more than 6.3 billion shares outstanding after its’ recapitalization in 2010.
5. Though Sirius XM can directly obtain some new technology of its combination, but Sirius XM still have to develop a radio that is able to receive the signals from both and XM and Sirius’s satellites. Thus, the cost will increase in this part. In addition, since the subscriber will required to buy new radio set because of this change, it is easy caused the dissatisfaction of original subscriber.
6. The stress from trustbusters.

Opportunities:
1. Opportunities to expand the satellite radio market shares by acquiring major automaker, such as Ford, Jeep, and
Cooperate with car manufacturers to increase the utilization rate, which offset the adverse impact contribute to the development of TV and computer industry.
3. Published the app through Apple store to keep the steep of the development of smartphone platform.
4. Dependent on celebrity show and celebrity endorsement to attract new subscribers.
5. Develop the technology, not only diverse the channels, but also diverse the ways to listen to satellite radio.

Which of the strategies?
Sirius XM is working with Broad Differentiation Strategy. Sirius provide subscribers various Channels, such as sport, music, news, talk-show, etc. In addition, most geographic area in the United States and Canada are under the clear reception provided by Sirius XM’s orbiting satellites. Furthermore, Sirius XM are trying to diverse the ways to listen satellite radio.

Working well? Evidence Yes. The Broad Differentiation Strategy is working well as it has expanded into safety and navigation area along with utility service and it has ensured to cater many other service. This is a smart strategy on Sirius’ part and has helped Sirius XM diversity its product offering, which bring Sirius XM a new profit growth