...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 However, the impairment expense to upgrade outdated equipment is costly.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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...XM satellite radio and Sirius satellite radio are the duopoly companies that compete each other in imperfect competition market in order to replace radio wave, FM AM, with satellite radio. There are barriers to entry this market since it needs a high cost. FM and AM are government owned and the network coverage is limited. In order to eliminate this complication, XM and Sirius introduce satellite radio, which have competitive advantages such as nationwide coverage, high quality audio, wide array of entertainment options, easiness to access. However, Sirius strategy is to create a free commercial radio and used subscription based service. In my opinion, in order for XM to win over Sirius is, to have wide variety of subscription fees targeting different segments of markets. For example, to price sensitivity customers, XM could charge them lower subscription fee but with a few advertisement. Nonetheless, higher prices for customers who want commercial-free radio. By that way, XM could generates revenue from advertising service from price sensitivity customer and at the same time not losing the advertising service revenue from not price sensitivity customers since they are charged higher price. The aforementioned strategy leads to higher income to the company in compare to Sirius company that adopt subscription-only model. Thus, the supernormal profit could cover the expected annual operating expenses that are high-priced. The other strategy is ‘keeping that customer’ strategy and...
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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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...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...
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...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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...Analysis of Antitrust Concerns Regarding XM/Sirius Merger This memorandum sets forth an initial analysis of the competitive effects of the proposed XM/Sirius transaction and identifies consequences of the merger that appear likely to substantially lessen competition in violation of antitrust law. This analysis is based on publiclyavailable sources regarding the parties, the transaction, and the industry in general. We will continue to refine our analysis as additional facts become available and arguments are developed. I. Introduction The proposed merger of XM and Sirius will combine the only two providers of satellite digital audio radio service (“satellite DARS”). The parties claim that DOJ should not be concerned about this merger to monopoly, because there are other suppliers in the purported market for audio entertainment. Those claims will be evaluated by DOJ pursuant to the rigorous analytical framework set forth in the agencies’ Merger Guidelines1 and decades of federal court decisions interpreting Section 7 of the Clayton Act. Under that framework, there can be no doubt that the effect of the proposed transaction “may be substantially to lessen competition, or to tend to create a monopoly” in any relevant line of business.2 The parties further suggest that regulators should not be worried about their merger to monopoly because they will submit to price regulation that temporarily locks in the current rates to ensure that satellite DARS customers...
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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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...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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...mcgraw-hill.com/sites/0078137144/student_view0/chapter... Home > Chapter 1 > Self-Graded Chapter Quiz Course-wide Content Cases Business Strategy Game GLO-BUS Online Updates and Errata Self-Graded Chapter Quiz (See related pages) Results Reporter Out of 20 questions, you answered 18 correctly with a final grade of 90% 18 correct (90%) 2 incorrect (10%) 0 unanswered (0%) 1. Review Key Points PowerPoint Presentations 2. Apply Assurance of Learning ... 3. Test Self-Graded Chapter Quiz Your Results: The correct answer for each question is indicated by a . 1 CORRECT Which of the following statements about a company's strategy is true? A) Crafting an excellent strategy is more important than executing it well. B) Managers at all companies face three central questions in thinking strategically about their company's present circumstances and prospects: Where are we now? Where do we want to go? How are we going to get there? C) A company's strategy deals with whether the revenue-cost-profit economics of its business model demonstrate the viability of the business enterprise as a whole. D) Masterful strategies come partly (maybe mostly) by doing things in much the same way as the industry leader but then being better than the leader in one particular area that counts heavily with buyers. E) Whether a company's strategy is ethical or not does not matter a lot because most customers and most suppliers are relatively unconcerned whether a company they do business...
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...WHAT IS STRATEGY AND WHY IS IT IMPORTANT? 1. Understand why every company needs a sound strategy to compete successfully, manage the conduct of its business, and strengthen its prospects for long-term success. 2. Develop an awareness of the four most dependable strategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. 3. Understand that a company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. 4. Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. 5. Learn the three tests of a winning strategy. Copyright ®2012 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin 1–2 WHAT DO WE MEAN BY STRATEGY ? ♦ What is our present situation? ● ● WHAT IS STRATEGY ABOUT? ♦ Strategy is all about How: ● ● ● ● Business environment and industry conditions Firm’s financial and competitive capabilities Creating a vision for the firm’s future direction How to outcompete rivals. How to respond to economic and market conditions and growth opportunities. How to manage functional pieces of the business. How to improve the firm’s financial and market performance. ♦ Where do we want to go from here? ● ♦ How are we going to get there? ● Crafting an action plan that will get us there 1–3 1–4 WHY DO STRATEGY ? ♦ A firm does strategy: ● ●...
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...Case #3 Jet Blue Airways A Cadre of New Managers Takes Control Strategic Management BUS 599 051*VA016*1122*001 Dr. Russell Handlon January 15, 2012 Case 3: Jet Blue Airways Question 1 Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The trends in the United States airline industry is high prices on gas, oil, maintenance, risks of terrorism, and less travelers flying rather its for personal or business. When these things happen it costs the airlines to make some changing by charging customers for checking their luggage, food, pillows, blankets, and leisure entertainment in order to meet the high spending cost of the airline business. Some airlines had to change their flight schedule to meet the needs of the customers during high peak time in popular vacation spots or other locations customers like to fly too by charges them lower fares. Some airlines have is shortage of pilots because the school of flying does not have enough instructors to train new pilots (Thompson, Strickland, & Gamble, 2010). Question 2 Discuss Jet Blue’s strategic intent. The founder of JetBlue Airway is David Neeleman, he wants to “bring humanity back to air travel.” Mr. Neeleman announced JetBlue’s “Passenger Bill of Right” is a policy for United States airline companies regarding vouchers, refunds in case of delays, cancellations, and other inconveniences (Thompson, Strickland, & Gamble, 2010). JetBlue Airways exists to...
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...and Mike Deimler ILLUSTRATION: BRIAN STAUFFER Adaptability: The New Competitive Advantage July–August 2011 Harvard Business Review 135 ADAPTABILITY: THE NEW COMPETITIVE ADVANTAGE We live in an era of risk and instability. Globalization, new technologies, and greater transparency have combined to upend the business environment and give many CEOs a deep sense of unease. Just look at the numbers. Since 1980 the volatility of business operating margins, largely static since the 1950s, has more than doubled, as has the size of the gap between winners (companies with high operating margins) and losers (those with low ones). Market leadership is even more precarious. The percentage of companies falling out of the top three rankings in their industry increased from 2% in 1960 to 14% in 2008. What’s more, market leadership is proving to be an increasingly dubious prize: The once strong correlation between profitability and industry share is now almost nonexistent in some sectors. According to our calculation, the probability that the market share leader is also the profitability leader declined from 34% in 1950 to just 7% in 2007. And it has become virtually impossible for some ex- ecutives even to clearly identify in what industry and with which companies they’re competing. All this uncertainty poses a tremendous challenge for strategy making. That’s because traditional approaches to strategy—though often seen as the answer to change and uncertainty—actually assume a...
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...CROSS CULTURAL MANAGEMENT Assignment When person from one cultural background, meet, interact with, understand and deal with person from other cultural background. That is cross-cultural management. The unawareness about the culture and beliefs of the people in a country has produced a lot of differences and misunderstandings between them and made their business field too much uncomfortable. In order to overcome this, the need of intercultural training has become very essential. In the intercultural training the candidates get a clear picture of the culture and the customs prevailing in a particular country and also get some helping words regarding how to mingle and associate with the people there. This enabled the trainees to clear the differences and misunderstanding between them to a greater extent. A mere training is not sufficient for a trainee to become perfect in dealing the matter timely and suitably. The latter part of the training can be attained by allowing the candidate to mingle with the people of the country concerned. Usually the trainees come across with one or two persons, or a group of people in a locality. On closely viewing the peculiarities in their behavior, nature, custom and language the trainees can make some preliminary judgment on the culture of the people there. These peculiarities cannot be taken into consideration for making judgments about the culture of the people of the country as a whole. If such an attempt is made, then it will be ultimately...
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...Price pressure from Samsung over key components 6. Strong dollar 7. Android OS growth 8. Competitors moves in online music market Strengths 1. Customer loyalty combined with expanding closed ecosystem. While at first Apple’s closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a full range of apps, software and products that are interlinked and support each other. Second, new products and supplements will be released soon (iTV), hence expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed ecosystem and customers’ loyalty increases firm’s competitive advantage. 2. Apple is a leading innovator in mobile device technology. Apple...
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...------------------------------------------------- MARKETING ------------------------------------------------- CASE ANALYSIS JETBLUE * SYNOPSIS This case illustrates the success that JetBlue Airline has achieved since founded in 1999, though it had trouble in 2007 during Valentine´s day and a few more, it managed to overcome the issue and become one of the most known companies for excellent customer service. The author mentions that JetBlue truly cares about the customer because JetBlue doesn´t sell just airplane tickets and its customers neither seek for airplanes tickets when buying at JetBlue. They buy the whole experience in which each detail included in the service made the customer feel special with things such as ´´legroom seats´´, plenty of food and drinks and a zone for entertainment which seeks to satisfy the client while they wait for their flight even though if its delayed among other tangible elements that the company offers. All the actions of JetBlue are encouraged to reflect their slogan “Happy Jetting”. Furthermore, another topic highlight in the case is the culture that the company professes, the way they treat each other, “the human side of the equation”. An example of this is the opportunity to workers to do their job from home. Employees are so satisfied with the company that they care for it, which reflects in how they do their job and their attitude towards clients. As the CEO communicated, “everything can be copied, except the culture”. All this combination...
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