...Executive Summary: XM satellite is a newly established company that has the potential and the ability to become leading satellite radio service provider in United States. At the time of the case, the demand for high quality, ad-free and mobile radio had a great potential and XM along with Sirius received a great opportunity to enter into the untapped market. XM’s only significant competition threat was Sirius. Both Companies were trying to capture market share from one another by creating superior customer access channels and build a brand image. These could have been done through retailers and strategic partnerships with radio producers for home and car markets. The home product brands include Sony, Pioneer, Matsushita and Car audio products include Sony, Pioneer Alpine, Delphi and Visteon The major issue for XM was how to market, how to price and what will be the value proposition. Since there were only two companies in the market the pricing of the service could significantly shift the demand and estimated/desired earnings. In order to thoroughly analyze the problem and seek viable alternative solutions I will try to list some of the key marketing issues. Key marketing issues include but are not limited to: * Creating brand awareness: In my opinion it is very important to mention that potential future customers are only the ones who are aware of the brand. The creation of brand awareness would be complicated given the company’s value proposition to keep ads off the...
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...with higher radio and subscription prices because the market will take time to develop and XM should not be the bearing the brunt of the development costs. Later, lower prices on both aggressively in order to attract more subscribers and begin to introduce limited advertising. Work with auto manufacturers, offer subsidized prices, let radio manufacturers and retailers handle the home and aftermarket markets, offer subsidies. Target the male market and Hispanic/other direct, cell phone, content providers 1. What is the value proposition of XM to different consumer segments? Who should be the primary target market for XM? XM caters to the various consumer groups and better targets everything from broad groups to small niches. XM will offer better, more focused content to the consumer at a reasonable cost with ease of use and cheap to start and fewer commercials. XM should target the market that is most likely to result in paid subscriptions and to which its content is geared, look it up. 2. What aspects need to be considered in pricing the radio receiver and subscription fee? What is the optimal price for a monthly subscription? XM needs to consider the affect on the number of end subscribers based on the cost of the receiver and the subscription fee. They already did studies that give insight into which price points might be most effective, see spreadsheet. Clearly, XM will need to be sure of where the breakeven point is and what the scalability is and what...
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...Sirius XM Canada MGT6910 – Policy and Strategy - Industry Bambie Hayes Shorter University Sirius XM Canada is a satellite media company and is one of the largest subscription based companies in Canada. Sirius XM Canada has 2.5 million subscribers and a 14 percent market share in the Canadian radio industry. Sirius XM Canada offers 120-130 channels that include sports, children, news, and talk programming (Sirius XM, 2015). Sirius XM Canada’s revenues were CAD 79 million for the first quarter 2015 (Q1 2015 Sirius XM, 2015). The Federal Communications Commission approved Digital Audio Radio Service’s usage for radio frequency for satellite broadcast in 1992. Two companies, Sirius Satellite Radio and XM Radio were awarded licenses to use radio frequencies. Sirius Satellite Radio and XM Radio were originally launched in limited cities, however, by 2002, both companies offered services nationwide. In the United States, satellite radio is regulated by the Federal Communications Commission. In Canada, satellite radio is regulated by the Canadian Radio and Telecommunications Commission. Canadian subsidiaries are required to have Canadian ownership (Hitt, Ireland, & Hoskisson, 2015) Satellite radio uses original equipment manufacturer, chip sets, and receivers to provide service to customers. The receivers are plug and play or factory-installed into vehicles. However, the impairment expense to upgrade outdated equipment is costly. For example, Sirius XM spent U.S. $22.3 million...
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...Case Analysis for MGT 6520 Neeti Pradhan MBA 1st Semester Executive Summary XM Satellite Radio was founded in 1992 as a subsidiary of American Mobile Satellite Corporation. In 1997, the FCC granted satellite radio licenses to XM Satellite Radio and Sirius. Since now XM has a license they can launch their product but they are facing a lot of questions that are to be answered to have that perfect launch. At top of that, XM Satellite Radio has not proven it value to the market players yet. XM’s biggest rival, Sirius is already far ahead of XM Satellite in term of publicity, timing and fund raising. XM Satellite Radio has a big challenge of getting customers to pay for a service that has been and still is free. Furthermore, people are unaware about Satellite Radio in general and how is it different from AM/FM radio. Moreover, the radio industry is basically in the sales decline stage of the product lifecycle and on the other hand XM Satellite Radio is in the introduction stage of product life cycle. XM is looking for ways to introduce their product to the market but the radio industry is basically trying to stay alive. Now XM needs to decide what should be done so that their launch is perfect from the day one. They have many issues to be resolved like choosing the manufacturers, choosing the target market, setting the price, getting the best retailer, choosing the right promotional tools etc. XM has great opportunities to enter and exploit the market and change the...
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...BUSINESS SIMULATIONS E X A M I N AT I O N USA & Canada 877.477.8787 Outside USA & Canada +1.312.477.7200 WWW.CAPSIM.COM Welcome to Comp-XM Your Registration Number If your instructor or school did not give you a Registration Number, you will need to register online using a credit card or checking account. Welcome to Comp-XM® an integrated evaluation tool that will allow , you to demonstrate your business skills. Comp-XM has two sections: 1. A business simulation similar to the one you just completed and 2. A series of quizzes, called Board Queries, that ask questions related to your simulation environment. The Simulation Round 1 Board Queries Board Queries are web-based quizzes that relate directly to the results of your simulation. As CEO, you will report to the Board of Directors. The Board FRXOG DVN XS WR ÀYH VHWV RI TXHVWLRQV %RDUG 4XHULHV that are based on the results of your previous rounds. )RU H[DPSOH WKH ERDUG PLJKW UHTXLUH \RX WR FRQGXFW a break-even analysis on an increase in production automation or calculate the effect additional ERUURZLQJ ZLOO KDYH RQ \RXU ÀQDQFLDO UDWLRV 7KH questions use standard true-false, multiple choice and essay formats. All the information needed to answer the queries appears within the pages of The Comp-XM Inquirer, an industry newsletter similar to The Capstone® &RXULHU RU 7KH )RXQGDWLRQ® )DVW7UDFN ,Q &RPS;0 you work as an individual, which means all success will be attributed to your efforts. This is your chance...
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...® EXAMINATION GUIDE ® Capsim Management Simulations, Inc. Welcome to Comp-XM Your Registration Number If your instructor or school did not give you a Registration Number, you will need to register online using a credit card or checking account. Welcome to Comp-XM® an integrated evaluation tool that will allow , you to demonstrate your business skills. Comp-XM has two sections: 1. A business simulation similar to the one you just completed and 2. A series of quizzes, called Board Queries, that ask questions related to your simulation environment. The Simulation Round 1 Board Queries Board Queries are web-based quizzes that relate directly to the results of your simulation. As CEO, you will report to the Board of Directors. The Board FRXOG DVN XS WR ÀYH VHWV RI TXHVWLRQV %RDUG 4XHULHV that are based on the results of your previous rounds. )RU H[DPSOH WKH ERDUG PLJKW UHTXLUH \RX WR FRQGXFW a break-even analysis on an increase in production automation or calculate the effect additional ERUURZLQJ ZLOO KDYH RQ \RXU ÀQDQFLDO UDWLRV 7KH questions use standard true-false, multiple choice and essay formats. All the information needed to answer the queries appears within the pages of The Comp-XM Inquirer, an industry newsletter similar to The Capstone® &RXULHU RU 7KH )RXQGDWLRQ® )DVW7UDFN ,Q &RPS;0 you work as an individual, which means all success will be attributed to your efforts. This is your chance to show your strategic vision, tactical abilities and business...
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...Sirius XM And the viable business model 2010 PART 1 Introduction Headquarters in New Yorok City, Sirius XM Radio, Inc. is the only provider of satellite radio, broadcasting more than 130 channels of digital audio via satellite to subscribers throughout the United States and Canada. The company's programming includes 65 channels of commercial-free music from every genre and 55 channels of news, sports, comedy, and talk radio. With impressive line ups of celebrity such as Howard Stern, Oprah Winfrey and Martha Steward there is something for everyone. Sirius's broadcasts are beamed from four in orbit satellites to more than 19.5 million subscribers who pay a monthly fee of $12.95 (Sirius). The service is mainly offered through new car sales with companies including Ford, Chrysler, and BMW among others penetrating 55% into the US market which accounts for 40% of their annual sales based on the 2009 annual report. Retailers like Wal-Mart, Best Buy and Radio Shack sell similar Sirius units for home and boat use. “Recently, Sirius has expanded to include music and comedy channels to mobile phone users; and music channels and select non-music channels over the Internet; a suite of data services; services that offer graphic information; and various real-time weather services, as well as operates a television service, which provides content designed primarily for children in the backseat of vehicles” (Sirius). These expansions are critical to the long term success of Sirius...
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...easily.Did the merger work? Well, take a look at the successful movies that Disney and Pixar have put out since: “WALL-E,” “Up,” and “Bolt.” Pixar has plans for twice-yearly films, unthinkable before the merger, and has certainly gained the expert advice from Disney when it comes to advertising, marketing plugs, and merchandising. When it comes to marketing to children, no one does it better than Disney. Even pre-merger cartoon “Cars” got the Disney treatment and remains a top seller in merchandising amongst 4 year old boys (just ask my nephew). irius/XM radio merger On July 29, 2008, satellite radio officially had one provider when Sirius Satellite Radio joined forces with rival XM Satellite Radio. The merger was officially announced over a year before, in February 2007, but the actual merger was delayed due to one tiny problem – when satellite radio first began in 1997, the FCC granted only two licenses under one condition: that either of the holders would not acquire control of the other.Oops. So Sirius and XM filed the proper paperwork with the FCC, allowed the FCC to investigate the merger, and waited patiently for the approval they needed. And although time will tell if the new Sirius XM company will succeed in the long-run, I consider this merger a success due to the number of big names recently added to their roster (Oprah, Howard Stern, Martha Stewart), as well having the foresight to combine forces in a down market. Tata/jaguar land rover the Tata...
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...NBER WORKING PAPER SERIES THE DISTINCT EFFECTS OF INFORMATION TECHNOLOGY AND COMMUNICATION TECHNOLOGY ON FIRM ORGANIZATION Nicholas Bloom Luis Garicano Raffaella Sadun John Van Reenen Working Paper 14975 http://www.nber.org/papers/w14975 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 May 2009 We would like to thank the ESRC for help with financing this research at the Centre for Economic Performance. We thank participants at the LSE Labor workshop, at the NBER Summer Institute in Labor and Personnel Economics, at the Harvard/MIT workshop in Organizational Economics and at the Microsoft Economics workshop for their useful comments. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2009 by Nicholas Bloom, Luis Garicano, Raffaella Sadun, and John Van Reenen. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The distinct effects of Information Technology and Communication Technology on firm organization Nicholas Bloom, Luis Garicano, Raffaella Sadun, and John Van Reenen NBER Working Paper No. 14975 May...
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...The merger between the SIRIUS Canada Inc and the Canadian Satellite Radio Holdings Inc University’s Name Submitted by Names: Tutor: Date of submission Sirius XM Radio Canada The merger between the SIRIUS Canada Inc and the Canadian Satellite Radio Holdings Inc which is the parent company the XM is more than just a telecommunication merger. The major step of it being approved by the Canadian Radio-television and Telecommunications Commission (CRTC) is a more than rewarding endeavor. This is because it means that the merger that formed the new organization if now fully functional and well to be strategized into the Canadian telecommunication sector. Recommendations There exist many differentiated aspect that revolve around merger especially in this case. This is because both the SIRIUS Canada Inc and the Canadian Satellite Radio Holdings Inc telecommunication companies used to be fierce and intense competitors in the time period before the merger. This means that both companies had studied each other in differentiated aspects that relate to competition. This includes marketing, departmental structures, weak points and strengths in relation to their competitive nature. This will be a rather odd merger but beneficial at the same time. The two teams that represented the human resource departments of both the SIRIUS Canada Inc and the Canadian Satellite Radio Holdings Inc will be integrated into one. This will make the merger to be complete and eventually form a larger...
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...Starbucks Coffee Company – February 2007 [i] A case originally written for JUAS2006 Seminar, November 2006, Pittsburgh, PA Latest major revision – July, 2008; minor revision in January, June & Dec 2010 Written by Robert S. Atkin © 2006-2013 Robert S. Atkin General Background Starbucks is a phenomenon – in just under three decades it has become an internationally visible brand literally defining an industry not only in the US, but in selected countries in the EU, the Middle East and Asia (Please see Exhibit 1. For additional information, please see the firm’s website or its SEC financial 10-K filings). For example, in the decade ending 2005, worldwide revenue increased about 15-fold to nearly 6.9B USD, while net income increased about 19 times to 494M USD. Most of this growth can be attributed to a dramatic increase in stores (both domestic and international), various product development and product mix changes (including improved food and music production [ii]), and price increases (two in US company-owned stores in the past year averaging 5 and 9 cents/drink in October 2006 and July 2007). A Starbucks affinity card was a significant growth driver in the past few years, but is not expected to be a major driver in the next few years. [iii] Begun as a local coffee shop in 1971, the company grew modestly in the Seattle area until the mid-1980’s when Howard Schultz joined the firm. Convinced by a trip to Italy in 1983 that coffee could become the center of a social...
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...Essays on the Structure of Financial Markets A thesis presented by Oved Yosha to The Department of Economics in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the subject of Economics Harvard University Cambridge, Massachusetts May 1992 Abstract Chapter I: Adverse selection in an insurance market may result in low-risk individuals remaining uncovered. In the framework of a monopolistic insurance market with private information, it is shown that government entry to the market as a competitor which sells insurance, results in all potential buyers actually purchasing insurance. Chapter II: The welfare trade off between reduction in risk and enhanced market power, as depository institutions become larger but fewer, is studied. The main result is that when there are enough independent risks in the economy, it is possible to achieve high diversification through mergers between depository institutions at a very small cost in terms of greater market power. Chapter III: Firms wishing to issue securities on the stock market are required to disclose private information which might be beneficial to competitors. Issuing securities publicly is more costly than doing so privately. In equilibrium, firms with sensitive information issue securities privately, while competitors cannot unambiguously infer that the information withheld is very sensitive. This suggests that one special role of banks and venture capital in financial markets, is to provide debt and...
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...Case Scenario 1: Industry segmentation: PFL’s frozen savoury, dessert and fruit products. Industry | Product and service segmentation | Frozen savoury | Meat pies | Sausage rolls | Cheese | Spinach Rolls | Pasties | Quiches | Desserts | Fruit pies | Waffles | Crumbles | Crepes | | | Fruits | Whole fruits | Processed fruit products | | | | | Customer Market segmentation: (module 2) Grouping customers based on distribution. * Sells to retailers (supermarkets) and food services outlets. (sporting venues or cafes) * Also two main distribution channels as IN-Home [retailers where products are bought for home consumption] and Out-of-Home [food service outlets where products are bought ready for consumption]. A.PFL’s Strategic Framework Steps for strategic framework was listed therefore using the “rational approach” (module 1) currently on “build the base’ and they’ve move to next stage which is “develop and grow" by introducing new products across all channels. B. Managing Director’s Report (2010) Customer market segmentation (Module 3): * Psychographic: groups based on culture lifestyle and personality type, e.g) most AFL stadium supply rights. * Distribution: BP convenience stock exclusively Four’N Twenty and Herbert Adams products. Market leadership in petrol and convenience channel. * Lowered their cost base so they can remain competitive in a very competitive market e.g) closed and relocated the frozen fruit packing operation form...
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...Section 6 Lecture Notes for Chapter 1 325 Chapter 1 Strategy and the Quest for Competitive Advantage Chapter Summary Chapter One explores the concepts surrounding organizational strategy. It begins with an explanation of the term strategy and offers a basis for how to identify a company’s particular strategy. Next, it explores the importance of striving for competitive advantage in the marketplace and examines the role strategy plays in achieving this advantage. The chapter then explores the idea that strategy is partly proactive and partly reactive. This is followed by a close look at the relationship between a company’s strategy and its business model. The chapter proceeds forward with a look at what makes strategy a winner and then presents reasons for why crafting and executing strategy are important. The chapter concludes with thoughts on the equation: good strategy + good strategy execution = good management. Lecture Outline I. The Importance of Managing Strategically 1. Three questions must be answered by managers of all types of organizations: a. Where are we now? b. Where do we want to go? c. How are we going to get there? 2. “Where we are now?” prompts managers to evaluate industry conditions and competitive pressures, the company’s current performance and market standing, its resource strength and capabilities and its competitive weaknesses. 3. “Where do we want to go?” this lies within managements vision of the company’s future direction. It pushes...
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...JetBlue Case Study 3/7/2013 1. A need is a state of felt deprivation that includes basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. Marketers did not create these needs; they are a basic part of the human makeup (Kotler and Armstrong, page 6). A want is the form human needs take as they are shaped by culture and individual personality. Wants are shaped by one’s society and are described in terms of objects that will satisfy those needs (Kotler and Armstrong, page 6). A demand is human wants that are backed by buying power (Kotler and Armstrong, page 6). JetBlue customers demonstrate the physical need for snacks and beverages by showing the company that they enjoy the free snacks and beverages that are being offered by the company. The customers may want the brand name snacks and beverages and the demand is demonstrated by the customer having the buying power to purchase Dunkin Donuts coffee, Terra Clue Chips and Chocobilly cookies. JetBlue customers also demonstrate the need to be comfortable while flying by wanting extra leg room and more space. The demand is demonstrated by the customer having the buying power to pay an extra $10 dollars to reserve one of JetBlue’s “Even More Legroom” seats, which offers more space and a flatter recline position. Another example JetBlue customers demonstrate is the need to be entertained while on a flight in the event...
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