XM Satellite Radio

XM send radiocommunication is a indemnity speech locomote programme growth which offers (1) wide range of programming choices, (2) high-pitched audio quality; (3) mobility and (4) ubiquity of access (Local/National). Thus, the product clear differentiates itself from rest of its competitors (Terrestrial radio broadcasters, cable/Internet audio) by religious offering alone of these attributes in a single package. Due to corpulent enceinte needs, FCC license constraints and complexity associated with technology, barriers to entry in this perseverance ar high and no new direct entrants are visualize in the near future. Based on the attributes above, assorted overlap consumer segments exist viz. machine receiving set Users, motortruck Drivers, Sports Fans, employment Listeners, and Weekend Travelers etc. Due to its mobility and ubiquity aspects, the product entrust most appeal to a cross-section of car intercommunicate users who are imparting to pay for a pre mium product. Although, the household Radio segment looks attractive, the threat from new technologies such as internet radio and cable radio will intermit satellite radios appeal. Among the target Car Radio user base, the young demographics from 25-34 eld and slightly ripened demographics of 35-44 years are most attractive. To target these segments, programming in correlation coefficient with these segments is planned.

To determine the pricing strategy the cost and life-time cling to (LTV) associated with each customer needs to be considered. The strategy should as well as exploit the high switching be aspect of t his product. The lifetime value of a custome! r is the PV of either the subscription fees over a reasonable period (2-5 years). The longer the consignment period the higher(prenominal) is the LTV. The cost is the subsidy required to price the recipient at an affordable rate. According to case, the cost of manufacturing a XM satellite radio is $270 and with manufacturer and retailer margins, the final cost comes come on to $456. Thus, a $256 subsidy (marginal cost) is required to price the receiver at $ 200. A mix of...If you want to get a enough essay, gear up it on our website: OrderCustomPaper.com

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