Xm Radio Case Analysis Essay

* Sirius and XM, separate companies, began to compete in the satellite radio business in 2001 and 2002. Target market was car drivers and daily commuters who listened to their local radio stations that they preferred, but were limited to small service areas and less range and would lose frequency once out of that locality. Wall Street believed that satellite radio was the next opportunity in consumer electronics.

c. Based on your analysis, do you believe peak period pricing, by reducing arrival rates during period of heavy demand, might represent and effective means of reducing the costs of over scheduling?

6. I think the largest issues in adopting Service Based Pricing would be the opposition from the salespeople and the customers. In most cases, fees will increase and it’s unlikely that this change will be welcomed by either party. Western may lose customers if

For instance, there are generic principles of pricing of desired net income, competitive position, and market structure. According to (Cleverly, Song, & Cleverly, 2011), every business must generate enough revenue through its sales of products and services to sustain its operations and provide for the replacement of its physical assets as well as provide a return to its investors. Partners Healthcare System and among other organizations must recognize levels of pricing, so inadequate pricing doesn’t accumulate to lead to business disaster.

I will then make sure I create value for each customer segment and create a pricing structure that will align price with the value delivered. On the other hand, most of the customers usually perceive that the higher the price charged, the higher the value is attached to the goods they purchase or services offered. This also becomes a cutting edge in determining the pricing strategy to use as I anticipate my clients to perceive what I offer them to be of a high value.

Competition is one of the major reasons why companies cut the prices of their products and services. If other companies were to charge high prices for their products, this would mean that by reducing prices, the company would attract more customers. Pricing of medicine in most cases does not depend on the available resources, but rather, a decision by the manufacturer.

How strong a relationship should exist between the prices charged to a customer for a good or service and the cost of providing that good or service?

understanding if a certain segment of the market will truly appreciate a product or service to be

3) Stable clientele as fee is not varying according to the present needs or if needs changes in future.

Who are MM’s target customers? Are all segments equally attractive to MM? If yes, why? If not, why not? How do the different segments’ needs and expectations evolve over time?

3. Which is the most attractive customer segment for MBC to target? Explain your reasoning.

General Issue: which segments should the company target? How should the company and its products be positioned?

Once the consumers like the product and realizes it is good quality, then they accept the product and the low pricing help the product create some buzz in the market and have some good techniques.

target markets with respects to that product. For this reason, in this report I picked

XYZ analyzed available market research data to identify target segments that would be profitable and fit with our strategy. As a result, we identified three initial target markets – the Cost Cutter, Workhorse, and Traveler. Use patterns and demand data for these customer segments are shown in Appendix A.