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Sirius Xm Case Summary

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1. Sirius XM does not have many competitive pressures so therefore it has good profitability potential in the vehicular radio industry. Through the five forces analysis the competitive forces that are the strongest or highest pressures would be the entry barriers, considering there will be a great deal of switching cost involved since there is a subscription price to pay to have Sirius radio in the car. They would also have to face the dominant player such as the standard am/fm radio which most people will get for free in which the people are very loyal to in that way and they tend to stick with it. The Buyers would also be a high pressure since you’d have to convince them to pay for the Sirius subscription. The last three rivalries, substitutes and suppliers would all be pretty low because there is currently not much rivalry in the industry of car radios. There are some substitutes but not many and the suppliers don’t change the price of recourses needed to get Sirius radio. 2. In vehicle radio is changing very rapidly in many different ways. Some of the underlying drivers of change would be …show more content…

They key factors that determine the success of companies competing in radio entertainment industry are; accessibility, price, commercials, variety. By accessibility I mean is it in all cars? Or can it be used without subscriptions or internet? All internet radio in my opinion will eventually be the best because with the cars being equipped with Wi-Fi capabilities. For internet radio you don’t necessarily have to pay for as you would for Sirius radio. Aux cords are very successful because obviously you completely eliminate commercials you would hear on the regular radio. On the other hand, an advantage for Sirius radio would be because of the commercial limitability. Sirius radio finally offers a variety of music stations and talk shows anything that you could possibly want to listen to on the radio actually. Which gives it another advantage over some of its

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