Preview

Xm Case

Powerful Essays
Open Document
Open Document
2267 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Xm Case
Xm Radio Case Analysis

Executive summary
XM Satellite Radio’s vision is to provide audio entertainment throughout the continental United States using a satellite-based digital radio broadcast system. Robert Acker, director of strategic planning, must raise the necessary $1 billion in up-front capital before the company can launch its services.
To attract sufficient fund from the potential investors, XM needs to provide a realistic plan with high enough return. It requires reliable estimates of total market size, speed of adoption, and the selection of revenue model, for XM during the discussions with investment bankers, radio manufactures, radio chipset makers and satellite companies.
Introduction
After several years growth of satellite television and cable TV, XM Satellite Radio, which was founded in 1992 as subsidiary of American Mobile Satellite Corporation that had recently partnered with WorldSpace Corporation, planned to serve as an audio entertainment company and broadcast 50 or more satellite radio channels featuring high CD quality sound. In order to raise enough finance to ensure the project will launch successfully, Acker had to develop a sound business model in a limit time framesince Sirius who was the major competitor in satellite radio market had gone public and presented it subscription-based model to Wall Street.However, as the only competitor in the existing satellite radio industry of continental US, Sirius had been already a head start on XM both in terms of financing and technology.
Key Issues
To convince the potential investors to have faith in the success of XM satellite radio service, XM first had to make decision on its business model, including the differentiation strategyfrom its competitors. Second, it had to find out an appropriate approach to radio manufacturers. At last, an effective marketing plan to implement for the system launch needs be to designed and evaluated.
Marketing Analysis
FOUR Ps
Place - Radio

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Looking at Porter’s generic strategies, it is clear that Sirius XM is a Focused Differentiator, as mentioned above. Sirius claims in its company overview that it is, “changing the way people listen to music, sports, news and entertainment… a unique listening experience is available to subscribers from coast-to-coast (Corporate Overview).” They have also just released the first ever live in-vehicle TV network. Sirius XM is focusing on providing a unique product and attempting to get customers to pay a…

    • 426 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Calvin Klein IMC Plan

    • 6657 Words
    • 28 Pages

    Calvin Klein Inc. formed in 1968 is typically associated with high quality apparel and intimate wear at a premium price, boasting strong brand equity and an extensive and global loyal consumer base. In 2003, CK was purchased by Philliphs-Van Heusen Corp (PVH), which now controls its operations. Calvin Klein has over time diversified into various business avenues, exploring the fragrances and sunglasses markets, which have…

    • 6657 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    Xm Radio Marketing Analysis

    • 5175 Words
    • 21 Pages

    When Fortune magazine named its product of the year in 2001, the winner was a new technology that many feel may revolutionize the way we listen to radio. The magazine’s rationale for its selection stated: “Of all the new technologies of 2001, XM Satellite Radio is way, way, way above the rest. It’s the first major advance in radio since FM emerged in the 1960s, and the best thing to happen to mobile music since the dashboard CD player.” After spending more than a billion dollars for programming and satellite operating expenses, as well as catchy TV commercials featuring celebrities such as David Bowie, B.B. King and Snoop Dogg; XM Satellite radio hit the airways in the Fall of 2001, claiming that it would do for radio what cable did for television. XM used “Rock” and “Roll,” its two Boeing 702 satellites stationed over the East and West coasts to beam more than 100 audio channels from the stratosphere to subscribers’ cars. While subscribers to satellite radio can still receive regular AM and FM terrestrial stations via their car antennas, by 2006 they could get more than 170 XM channels of nearly commercial-free digital radio that includes music, news, talk, sports, and children’s programming.…

    • 5175 Words
    • 21 Pages
    Powerful Essays
  • Satisfactory Essays

    The very first fact that I noticed about Sirius XM’s radios financial statements was its incredibly large revenue. When compared to its competitors, there is essentially no competition, with Sirius XM posting revenues of over $3 billion for each of the past two years. The closest competitor to Sirius in the radio broadcasting market in terms of revenue was Cumulus Media, which had posted revenues just over $1 billion in 2012 and $550 million in 2011. Sirius XM has also shown consistent growth of its revenue since the merger in 2008. Over the past 3 years Sirius XM has seen its revenue grow by 14%, 7%, and 13%, which can is a significant amount due to the fact that Sirius XM’s revenues are in the billions. In addition to the growth in revenue, Sirius XM has seen a consistent growth in net income over the years as well.…

    • 952 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Xm Radio Case Analysis

    • 2713 Words
    • 11 Pages

    Based on XM’s research, I believe their target market should be focused on the Tech-Seekers demographic. This demographic appears to present the best opportunity for market penetration. They are more inclined to purchase the XM service and become lifetime customers because of their desire to be on the cutting edge of technology. Moreover, this demographic is very similar to the second largest market interested in satellite radio, Tech-Friendly consumers. Therefore, there is greater opportunity for these Tech-Friendly consumers to purchase the service as well. Between these two groups, XM satellite radio has the ability to gain quick financial stability to capture more of the market share.…

    • 2713 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Radio One Case

    • 612 Words
    • 3 Pages

    In 1988, Radio One developed the idea of growing their business and wanted to purchase twelve urban stations from Clear Channel. This channel was…

    • 612 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Sirius XM has unique strengths that they can apply to help foster their future success. The company offers their customers premium and exclusive broadcasting services which include the NFL, MLB, NASCAR, NBA, NHL, traffic, weather, and more. In conjunction with being able to offer premium and exclusive broadcasts, Sirius XM is not restricted in their content to the extreme that free radio stations are subjected to. Sirius XM has the advantage of operating in an industry where the high barriers of entry make it difficult for other businesses to break in which has allowed the company to have no competitors. One of Sirius XM’s most significant strength comes from their large coverage area. Their services are able to reach customers that…

    • 284 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Radio One Case

    • 1208 Words
    • 5 Pages

    There are several alternatives available to Radio One, the first dealing with what they should do concerning the new stations and the other is if they decide to purchase them what direction should they take? In 1999, Radio One has the opportunity to purchase the 21 stations with the capital they have raised with their IPO and other capital, or they can decide not to buy the additional stations. If they decide not to purchase the additional stations, they will need find a way to invest the money to increase shareholder wealth.…

    • 1208 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    What Is Sirius XM?

    • 933 Words
    • 4 Pages

    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.…

    • 933 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Amim Case

    • 1354 Words
    • 6 Pages

    ROE PNM used in its illustrative cost of service filed in Case No. 10-00086-UT. Mr. Monroy calculates a net present value cost savings of $20.9 million over the 20-year period of 2020 through 2039. Mr. Monroy selects this period because 2020 is the first full year following full AMI Projected implementation.…

    • 1354 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Radio One Case Study

    • 1155 Words
    • 5 Pages

    After the Telecommunication act in 1996 significant consolidation occurred in the Radio Industry, thereafter Radio companies were able to obtain cost savings by acquiring multiple stations in one area and reaching economies of scale. The nation’s two biggest radio company - AMFM and Clear Channel – was just about to merge and in order to do so the FCC required them to divest 100 radio stations. This was an unprecedented growth opportunity for Radio One as 12 of these stations fitted perfectly their corporate strategy which was to „provide urban-oriented music, entertainment, and information to primarily African-Americans in as many major markets as possible”. Since under normal market conditions radio stations in the top 50 markets rarely became available for purchase, this was a perfect opportunity for Radio One to expand and implement further cost-savings through economies of scale, programming syndication, reduction of duplicate staffing and increasing advertizing revenues by becoming able to offer wider audiences and „package deals” for advertisers. This was also an opportunity to expand to new markets. Radio One’s bidding position was backed up by Chairman William Kennard’s advocacy at the FCC, which encouraged the sale of at least some stations to minorities, and since only Radio One had the experience and the capital among the potential buyers it had a strong position.…

    • 1155 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Sirius XM Holdings Incorporated has been in business for six years as a merged company and their main line of business is satellite radio. Today it “is the largest radio broadcaster measured by revenue and has 25.6 million subscribers.” SiriusXM creates and broadcasts commercial-free music; premium sports and live events; news and comedy; exclusive talk and entertainment; and the most comprehensive lineup of Latin commercial-free music, sports, and talk programming in radio” (SiriusXM, n.d.). “It also provides traffic, weather, data, and information services for subscribers in cars, trucks, RVs, boats, and aircraft (Yahoo Finance, n.d.). Ever since the merger in 2008 of Sirius and XM radio the companies have been figuring out how to combine the two services with different subscriptions and prices. SiriusXM has done a fantastic job developing partnerships and deals with different sports leagues and car manufacturers to ensure that they have the best products and make it easy for the consumer to have the product in their vehicles.…

    • 3217 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Sugarcane Juice Business

    • 1968 Words
    • 8 Pages

    year objective is to obtain 18% market share with sales revenue of 40 million Tk. net profit of 7 million. And five year our market share will be 30 %.…

    • 1968 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    The company´s technical path to reach the radio paper ($80 billion market) would have to firstly go through…

    • 352 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    What is the customer related success factors for attracting listeners to KUNV 91.5 HD2 Rebel Radio?…

    • 11352 Words
    • 46 Pages
    Powerful Essays