Discuss about the Event Management of Sirius Satellite Radio and XM Satellite Radio.
Sirius Satellite Radio and XM Satellite Radio are two different companies that have the same objective of transmitting signals to customers. The launch of the companies was exactly a year apart from one another in 2001 and 2002. Apart from the founding members, both the companies had similar contributions in the effort to launch satellites for the providing programme broadcast to people around the world. The highlights of the companies were that both the companies spent millions of dollars for the launch of satellites and the manufacturing of equipment that are required for broadcasting information and conduct market researchers to gain subscribers of their products.
However, the level of competition in the industry provides to be a cause of concern for the companies. In order to reduce the competitors, in 2007, both Sirius Satellite Radio and XM Satellite Radio came to the agreement of merging with one another. The reason behind the merging of both companies is the fact that XM was receiving poor signals for the transmission of satellites feeds. Moreover, the decision was also made in order to mitigate the threat of competition in the industry. It was also predicted that both companies could suffer a huge financial loss to the lack of broadcasts and subscriptions.
Apart from these the fact that both companies were based on a subscription business model prompted the idea of merging with one another. This resulted in the success of the satellite radios as, by 2007, both companies had gained a wide range of channels. According to Baysal et al., (2016), the XM had gained more than 170 channels while Sirius gained more than 133 channels. This significance was the fact that both the companies received different channels that could provide versatility to the people. Despite the merger, Sirius XM satellite radio suffered a near-death experience that led to the fall of the financial stability even leading to bankruptcy after a certain point in time. The fall in the position of the company was mainly due to the cost of competition.
As stated by Cooper, Doody & Allwood (2017), the company suffered a great financial loss in trying to compete with organisations that possessed high-level of threat in the market. The application of new strategies can help the company to survive the experience that they had during the 2008-2009 session (Kent, Dias & Kamran, 2015). These strategies include the growth of customers and subsidiaries. As seen from the situation, the company lacked cash in order to make the debt payments. This was the main reason for the loss of financial position of the company.
According to Hollensen (2015), internal analysis of a company usually identifies the strengths and weakness along with the resources and capabilities. The internal analysis is done in order to make recommended changes that are required for the improvement of a company. The policies, strengths and resources of a company are analysed based on the performance of the organisation. In the case of Sirius Satellite, merging with XM Satellite had helped in improving the resources of the company. On the other hand, the problems faced by XM Satellite were also solved. However, the internal strength of the company can be analysed after the incorporation of new strategies. Post the near-death experience situation SiriusXM underwent changes in the internal environment of the company. This was done in order to ensure that factors that can be controlled by the managers do not become the main cause of hindrance for a loss of the company.
The reduction of long-term debts can help in maintaining the financial stability of the organisation. As seen from the previous experience, one of the reasons for the failure of the company was due to the inability to pay the debt. This led to the lodge of court complains from investors. The company also launched streamline operations in order to gain more profit within a few years (Goetsch & Davis, 2014). The operating costs of the companies that had signed before the merger of the companies were also reduced. These internal strategies increased the financial stability of SiriusXM and ensured that opportunities for improvement are created. The fact the company could form new strategies despite the setback is an indication of the success that the merger had on the business of SiriusXM.
The external analysis of the company identifies the competitors that exist and the level of threat they produce. According to Dobbs (2014), the external analysis of a company takes into account various factors that may affect its success. These factors normally include the political, economic, social and technological factors. Barring these competitors, both old and new also pose threat to the success of a company. This can be evidenced by the fact that it has been seen that due to the high competition in the market, SiriusXM developed financial loss. The cost required in order to remain competitive with the competitors are more than the annual income of the company. The introduction of HD radio helps in the easy transmission of satellite signals. In the modern days, the use of updates technologies is essential in order to dominate the market and ensure that organisational productivity increases (Calvo-Mora et al., 2014).
Advanced In-Depth Infotainment System is one of the modern technologies that competitive companies such as Liberty Media use in order to gain easy access to the market (Boyd et al., 2017). However, investment from troubled companies like John Malone can act as friendly advisors for the company. Such investments have helped SiriusXM to not only survive the big downfall but also helped it to develop new strategies that are essential for the company. Such investments helped in the turnaround of the company and within a period of seven years, it had 25.6 million subscribers (Xiang, Archer & Detlor, 2014). Apart from the competitors, the company also faces challenges from the climate. This is evidenced by the fact that one of the reasons for the merger between Sirius and XM is the fact that XM had been receiving poor transmission signals. Hence, climatic factor plays an important role in the success of satellite companies like SiriusXM.
According to Hill, Jones & Schilling (2014), making strategies can help an organisation to gain success in the competitive market. However, development of alternative strategies can get an organisation to remain prepared in the case of failure of the initial strategies. Having analysed the situations that led to the fall of the company, certain strategies can be undertaken that can help in minimising the damage in the future. These strategies were developed immediately after regaining the status of the company from its downfall. The strategies focused on four main aspects of the company. These included the programming, marketing, radio distribution, and satellite system along with customer service. These strategies are important in order to maintain the revenue of the company and increase its efficiency in the business market (Rothaermel, 2015). One alternative strategy that can be developed is the reduction of duplicate programmes.
Most of the times radios broadcast programmes that are almost similar to one another. These include multiple musical shows from different parts of the country. Instead, a mixture of shows can help the company to maintain the regular fan base. The replacement of old programmers can help in the refreshment of the mind of the people. This can be effective in increasing the rate of subscription which in turn can help in enhancing the business. Grant (2016) stated that the application of such a strategy can help in the increase of profitability of a business. In the case of SiriusXM, the profitability increased by $150 million due to more subscription and flat costs.
The marketing strategy can involve targeting the increase of subscription. In order to do so, the company need to focus its attention on the programmes that lead to the gain of subscription for the company. Such programmes can be identified by proper market research that analyses the preferences of the customers (Armstrong & Taylor, 2014). Creating partnerships with other companies such as vehicle companies can help in increasing the sponsorship. It has been seen that in 2014, that the focus of marketing has been the new as well as existing vehicle industry. For example, increasing subsidiaries through the use of cars can help in about 70% growth of the company. According to Radebaugh (2014), a trial subscription can also help the company to gain the trust of the customers regarding the type of programs that they perform.
Different plans and packages can also be used in order to increase subscription and make people aware of the type of programmes that are conducted by SiriusXM. Radio distribution strategy can involve selling products to customers directly via the use of websites. In order to maintain customer satisfaction, it is necessary that SiriusXM retain customers and increase the options for more interaction (Kent, Dias & Kamran, 2015). This can help in gaining the feedbacks of the customers for improvement. SiriusXM has hired customer service personnel that increase the ability of the customers to interact with the company. Despite the introduction of the new strategies certain changes can be recommended in order to ensure that SiriusXM implements the strategies to a greater extent and ensures that future growth of the company can be made smoothly.
After the analysis of the strategies it can be said that in order to maintain its dominance in the market and avoid further mistakes, SiriusXM needs to ensure that the strategies are followed in the right manner. Improvement in the strategies can have a positive impact on the company. This is because an improved strategy can take into account any problems that may come in the way of the company. Every step in the improvement of the strategies needs to be analysed clearly and the managers need to ensure that the changes are implemented in an effective manner.
One such improvement may be done in the form of marketing strategy. The manner in which subscriptions can be adopted needs to be improved as it is important for gaining the trust of the customers. More programmes can be created in order to increase the customers interested in the programmes of the company. It is to be considered that people purchasing vehicles tend to buy more subscribers in order to reduce the cost of after sales value of the vehicles. Hence, it is necessary for the company to invest in the promotion of vehicles in the market. SiriusXM can provide sponsorship in the subscription of the programmes of the satellite station by keeping in mind that the people view the programmes that are offered to them.
This can be done by understanding the tastes of the people. In this regard, external analysis of the business environment can help SiriusXM to make a strategic decision regarding the ways by which target market can be developed. This involves targeting the vehicles that are more popular with the people of the society. Creating subscriptions on those types of vehicles can help SiriusXM to increase the finance and ensure that the company get the required promotion for reaching the customers. This can also be a way to maintain a relationship with customers. Trail subscriptions can help in improving the relationship with the customers. Thus, it can be said that the increase in subscription can be ensured by analysing the demand of the customers in the market.
In order to ensure that the recommended strategies have been implemented and are providing positive results to the company, it is necessary that the managers conduct a proper marketing survey. This marketing survey is essential in order to understand the manner in which people respond to the subscription strategy. The goal of SiriusXM is to reach 500 subscribers for the programmes that the company offers and provides reimbursement to the retailers. This also includes making plans and packages that involve providing attractive gifts to customers subscribing the programmes of the company.
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