XM-Sirius satellite radio merger

XM-Sirius Merger : Competitive Rivalry Within an Industry : A Strategic Report

On Saturday , July 26 , Sirius Satellite Radio has merged with its archrival XM Satellite Radio , which , according to the observers would have the following implications

New Market Entrant : XM-Sirius Radio

Entry ease /barriers : Rule violation , opposition from land-based radio

Geographical factors : Positioned win-win due to satellite transmission

Incumbents ' resistance , as they stand to gain from the money saved in merger

New entrant strategy : Increase revenue through joint service available in a single radio

Routes to market : Branding , Satellite

p Supplier Power : Joint Funding

Brand reputation : Established

Geographical coverage : Unlimited

Product /service level quality : Better

Relationships with customers : Better

Bidding processes /capabilities : Powerful

Buyer Power

Buyer choice : Limited

Buyers size /number : Doubled

Change cost /frequency : Profit

Product /service importance : Monopoly

Competitive Rivalry : Land-based Radio

Number and size of firms : Many , large to small

Industry size and trends : Big and expanding

Fixed variable cost bases : Escalation in Programming

Product /service ranges : Threatened to go down

Differentiation , strategy : Aggressive campaign

Product and Technology Development

Alternatives price /quality

Market distribution changes : Shift of revenue from land-based radio to XM-Sirius

Fashion and trends : Merger created hype and attracting consumers /advertisers

Legislative effects : Cleared the hurdle...