Xm Satellite Radio Essay

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XM Satellite Radio is a company that is different than many that we have seen in the past. This is due to the rather small number of competitors that XM had in their industry. Although radio has been around for decades, XM Satellite Radio was much different by opting to use satellites to send signals to radios while having a much higher level of quality. At the time of XM’s creation, their sole competitor was Sirius, making it very difficult for others potential competitors to enter the industry due to high regulation. Since XM only has one direct competitor in their industry, they have the ability to focus most of their efforts of how to gain an edge over Sirius Radio, rather than multiple competitors. Indirectly, XM still has to compete with …show more content…

XM’s value proposition to its consumers is that they are able to provide an uninterrupted, high level of music quality that other music services cannot provide. Because of this high level of quality, consumers should expect to pay a fee that goes along with the subscription to the service. To those consumers who are long commuters, XM’s value proposition should be that wherever they go, their listening will be uninterrupted by a lack in signal or a change in location. This advantage is very beneficial to XM due to the flaw of normal radio not sending signals far enough for large consumers to enjoy the same station for the duration of the trip. To those that are interested in superior music quality, the benefit that XM has over many other services is that fact that the have, “near CD quality,” sound, making it a much better option that the typical radio. The primary target of XM Satellite radio should those consumers who are interested in a higher level of uninterrupted music quality. Their main focus should be consumers who are younger in age such as college students or recent graduates who are often early adopters to new trends and technologies in the

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