(Solved Homework): Here are the case questions for Sirius XM Radio 1. What is your assessment of the strength of competitive pressures that Sirius XM must contend with as a provider

Here are the case questions for Sirius XM Radio

1. What is your assessment of the strength of competitive pressures that Sirius XM must contend with as a provider of radio entertainment services (principally for motor vehicle owners)? A five forces analysis should be used to develop your answer to this question. Which competitive forces are strongest? Weakest?

2. How is the marketplace for providing in-vehicle radio entertainment changing? What are the underlying drivers of change? Are these driving forces acting to make the business of a satellite radio provider such as Sirius XM more or less attractive from the standpoint of competitive intensity and potential for good profitability?

Expert Answer

 1.I believe that sirius XM is under high competitive pressure for providing radio entertainment services.Rivalry among existing firms,given that there is little differenatiation between rivals products it makes it difficult for sirius to get a competitive edge.why buy their product over competitors?Threat of new entrants,the satellite radio industry has an incredibly high economy of sale.the industries barriers consists of licensing for their broadcast and satellites and regulated by the FCC.luckily for sirius,the FCC is granting fewer and fewer satellite licenses.Threat of substitute products from AM/FM radio,pandora,sound cloud,etc.,Sirius will need to focus on price.now,as a buyer you can even negotiate the rates for a timed contract.Bargaining power of suppliers,there is weak bargaining power due to the amount of suppliers in the electronics industry.however with materials being technical with a high amount of suppliers,sirius can pick and choose who they would like to purchase from.
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