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Xm Satellite

In: Business and Management

Submitted By Neeti
Words 4586
Pages 19
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 future of radio technology. For this XM need to form effective strategy for 4 P’s and appropriate mix of pull and push strategy to gain competitive advantage and leave the competitors behind.
Product Strategy: Add new attributes and new cool features like extended memory, water resistant cover; provide best after sales services by providing warranty and customer service on regular basis....

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