This report examines the case of XM Satellite television Radio in the Harvard business school producing an evaluation on how to marketplace the coming product of satellite radio as well as the business technique to succeed in the industry. The report can be divided in questions that help see the different aspects of the case and take a closer check out how to start this provider. At the end suggestions are made on what is the ultimate way to go with the organization.
Only one competition: SIRUIS firm in the car the airwaves
High price to manufacture radio system, $270
Key population segment that may have higher demand for the product: 25-34 years of age
Principal car radio manufacturers: Master, Alpine, Fiat
Winning idea: Commercial totally free radio
Near CD quality music
Typical revenue coming from advertising $23, taken from traditional radio info Projected revenue from promoting $42, 748, 927
Transmission rate 7% (Assumed)
Employ both residence and stereo market
Create two programs of regular monthly charges: $8 basic and $12 high grade Selling price pertaining to radio system $300
Range of channels: standard 25 areas, premium 40 stations
Retailers selection: A few days ago, Radio Shack and Wal-Mart
Eliminate advertising and get commercial totally free
Associate with radio producers: Pioneer, Alpine, Sony
1) What is the value proposition of XM in order to consumer sections? Who
need to be the primary target market for XM?
The value idea of XM basically tries to attract every customers while using purchasing power of acquiring the program. What they give is satellite television radio devices without the need to re-tune the stop in order to get quality sound the moment moving from an area to a new. Another important value proposition is the fact that that the car radio will consist of stations for every age group which will allow the customers to get what they want in terms of music.
Other value proposition should be the business free thought. This idea is under consideration because of the possibility to increase revenue from marketing payments. The...