Sirius Xm Executive Summary

Michael Porter wrote about five forces affecting the profitability and viability of companies. The five forces are existing competitors, new entries into the market, substitute products, bargaining power of customers, and the bargaining power of suppliers. (quickmba)

In order to stay competitive in an industry with an increasing number of players, companies have to be

Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.

Second, the customers switching costs was small. Members were likely to drop out anytime they like or renew membership. According to statistics, about 30% of members dropped out after a year and 70% members renew their yearly subscription every year. Because of this situation, the competition between the exiting competitors had become more intense. As noted before, the company should provide diverse products and addition of new programs to get back members.

"Sirius XM Has a Monopoly on Satellite Radio, a Growing Subscriber Base, and Loads of Free Cash." Bamboo Innovator. 24 Nov. 2013. Web. 28 June 2015. .

Pandora originally started with a subcription type of business model wherein users must pay $36 per month after they have used up their 10 hours of free access. The original model used was the free trial type. What happened was after the free trial of 10 hours was used up, the customers were unwilling to pay for the subscription fee. Now, the new and current model being used by Pandora is the freemium business model. The new model offered users longer time limit in using their features, which could be used again in the next month and

What driving forces do you see at work in this industry? Are they likely to impact the industry’s competitive structure favorably or unfavorably? (Did we answer this question?)

2. Low switching costs on the part of most radio listenersit is incredibly easy to switch stations on a car radio when driving or when at home (using a radio or a computer or a smartphone or a tablet

Founded in 2007 as a result of the merger between Sirius Satellite Radio and XM Satellite Radio, Sirius XM Holding Inc., is the largest radio broadcaster in the world by revenue. It currently offers more than 165 streams, including:

As technology continue to refine how products and services are delivered to consumers, competition among industry participants becomes more refined. Organizations that are able to keep up with changing technologies become leaders while those that are not fall behind. Mergers and acquisitions are increasing while causing small businesses to sell out or seek partnerships and cooperatives in order to remain competitive and relevant.

In a highly competitive and dynamically changing market it has become imperative for the leading

Comcast is a large cable and satellite television provider in the United States. The company has been plagued with internal weaknesses and external threats in recent years and is in desperate need of turning around its customer service department as quickly as possible. Aside from customer service, the way the television industry is marketed to is changing, Comcast has to stay on the cutting edge in price, product quality, flexibility of plans, and customer service. Comcast has many different areas of their business that need to be analyzed to see where they can invest time and monetary resources to improve the quality of their product and service to their customers.

New entrants in the industry that are battling to have a share of the market

            Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there

We intend to use radio networks to also promote the product. The reason for selecting radio networks are because the people that fall within our target market listen to the radio often. This insight is based on research that showed that most people within our target market listen to the radio daily. The specific radio networks we intend to use are Joy FM and Peace FM. The reason for selecting these networks is because most people that fall within the middle-class to upper-class listen to radio networks such as Joy FM whereas those who