Sirius XM Canada has to address several problems that arose from their merger before they can successfully become a combined company. The first problem is not having a unified management structure ready to support the Combination Transaction. A second more pressing problem is the conservative approach on proposed synergies. A third problem has to do with the marketing expenditures and how to effectively manage distribution and sales strategies. Lastly, a fourth problem is creating a solid financial strategy that can generate anticipated cash flows and liquidity. However, of these four problems, not achieving successful synergies across all functions and departments is the most important. If the new company is able to achieve such synergies, …show more content…
The merger made way for many cost saving opportunities; marketing expenditures and programming being two of the greatest options. Before the merger, large sums of money were spent on finding a way to compete with each other. Mainly advertising, but also using resources to get celebrities to join their company. However, as a combined company, Sirius XM now has a stronger position and can allocate that money elsewhere. Possible benefits include improved efficiencies, greater economies of scale and not requiring any reduction in staff or severance payments. On the contrary, possible drawbacks include not being able to increase prices and low threat of suppliers.
A second alternative is a shift in marketing focus towards a new target segment and improved product. A strong and unified market strategy can strengthen synergies through new collaboration. Given the rapid growth, it is essential to reach influential segments that can create a mass appeal over the broader market. Doing so, will also require improving the quality of their product by focusing more on programming and less on hardware sales. A possible benefit would be creating a niche market that enables a rapid brand expansion. On the other hand, a possible drawback would be not being able to handle rapid
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Innovative products are quickly advancing thanks to technology. Sirius XM should use their resources to rapidly advance their new product the same way. Doing so will involve finding a niche market that could help influence the broader market. Additionally, a niche market could also help build brand loyalty. However, rapid growth might present challenges. The biggest challenge is not being able to keep up with the growth and demand. Technical compatibility is another challenge. Sirius XM needs to develop a new radio that is capable of receiving signals from both satellites. This would require more manufacturers to be involved in the engineering process. Moreover, customers would have to buy the new radio set to stream the new
In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
Over the centuries, the media has played a significant role in the shaping of societies across the globe. This is especially true of developed nations where media access is readily available to the average citizen. The media has contributed to the creation of ideologies and ideals within a society. The media has such an effect on social life, that a simple as a news story has the power to shake a nation. Because of this, governments around the world have made it their duty to be active in the regulation and control of media access in their countries. The media however, has quickly become dominated by major mega companies who own numerous television, radio and movie companies both nationally and internationally. The aim of these companies is to generate revenue and in order to do this they create and air shows that cater to popular demand. In doing so, they sometimes compromise on the quality of their content. This is where public broadcasters come into perspective.
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
Berry, A. W. (2010, May 31). Advantages and disadvantages of acquisitions and mergers. Retrieved from http://www.helium.com/items/1561489-mergers-and-acquisitions
More new products need to be introduced and research needs to be done to find out which products will be most popular and profitable.
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
Could this force the company to continuous innovate to prevent the products from entering a mature market? You have to give the customers reason to upgrade. I think that is why Apple has been so successful – by releasing an updated proprietary product every year (iPhone and iPod). This strategy has allowed them to stay ahead of their competitors, forcing the competitors to chase them and also continuously bring new products to the...
As a result of the FCC auction, the only XM’s competitor in satellite radio arena is SIRIUS. But at the same time there other entertainment sources that could be perceived as prospective competitors for XM.
Mergers and acquisitions immediately impact organizations with changes of rights, and ideas and eventually, in practice. There are multiple reasons some are motives and financial forces just to name a few. There are financial risks of merging with or acquiring an organization this is why you must have a strategic plan in place in order to benefit.
When two companies decide to combine forces and become one bigger, richer mega company, it is called merging. This process forms a new company, combining the money and ideas of what used to be two different entities into one. This, however, is not the only thing that results from merging two different companies, and since we will be discussing the merging of two companies in the pharmaceutical industry, the impact will be incredible. Of course, the merging of two companies will not only have positive impacts but it will have many negative side effects as well. Furthermore, depending on the size of the merging companies and the goals of the people leading these companies there will always be contradictions according to the long-term goals or short-term goals depending on what both parties’ interests are. Our company, Verduga Inc. is contemplating to merge with Coronado-Salinas Inc., so before we rush into such a merger we must contemplate the positive and negative aspects of such a move. When it comes to mergers there are always many possible positive and negative impacts due to the effects of merging; these effects more widely impact the fields on research and development, on employment and management, stocks and shareholders, monopolization, and ingenuity.
... this and their marketing strategy will be key if they are to remain viable, grow and compete in the market.
The changing business environment- highly competitive "global" product markets, an increasingly rapid advancements in Information and Communication Technology (ICT) and increasing capital intensity of production.
We intend to exploit our leadership role by continuing to target and enter segments of the communications market that we believe will experience rapid growth or grow faster than the industry as a whole....
Potential new entrants: With positive economic outlook, fine business environment, and increasing number of population growth rate, it is expected that there will be more companies coming in the industry;