Sir Xm Canada's Case Study: Sirius XM Canada

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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…show more content…
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

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