Sirius XM: Analysis and Recommendations - Essay Example

Section/# Sirius XM: Case Analysis and Recommendations At any time in which a merger takes place, a great deal of uncertainty defines the immediate future for the newly combined firm. As a function of understanding this particular process and seeking to provide a list of recommendations with regards to the case of XM Satellite Radio and Sirius Satellite Radio, the following analysis will mainly be concentric upon this author’s opinion with regards to the way in which this particular merger took place.

As such, a unique level of discussion will be placed upon best practices and opportunities for improvement that are evidenced within the case that which is provided during the course of the semester entitled “Sirius XM Radio Canada”. It is the hope of this author that such a level of analysis will be beneficial in understanding the unique dynamics, future trends, threats, and opportunities that this newly integrated firm faces within the immediate future as well as the shortcomings that have continued to harry them in the recent past.

One of the best practices that was exhibited with regards to the case in question is with respect to the speed and urgency in which a streamlined integration took place between these two firms. All too often, mergers are engaged and performed within a rather slow rate of change. As can quickly be noted, the business world is a dynamic reality in which immediate environmental shifts and changes can ultimately spell disaster or fortune for the firm or organization in question (Wood & Dunbar 11).

As such, the streamlined integration that these two firms engaged and they focus upon the advertisers as an important secondary stakeholder towards whom the entity must pay a great deal of attention, were to fundamental approaches that allowed for this merger to take place with a relative level of ease. Further, addressing possible differentials in the corporate management philosophy, integrating and retain personnel from different companies, and performing a needs-based level of planning prior to any integration taking place what are also fundamental best practices that allowed for this merger to maximize the utility of both stakeholders without diminishing their individual contributions that had previously allowed both firms to come to a level of success and dynamic competitors within this market.

However, it must not be understood that the issues facing Sirius XM only exhibited best practices without any threats to the overall viability of the brand. Ultimately, for reading the case study, it is the profound understanding of this particular author that the debt to income ratio that this particular firm experienced in and around the time of the merger is nothing short of alarming. The article itself references the fact that a single satellite put into orbit cost in excess of $1 billion.

This figure in and of itself does not encapsulate maintenance and sustainment and/or the continuing levels of license renewal that broadcasts over and XM range would necessarily incurred. Moreover, the merger also presented a situation in which the consumers of both of these entities could pay an additional four dollars a month extra as a means of being able to have access to both the content of these companies. As such, the pricing structure is something that fundamentally places the firm at risk.

Whereas it is true that the firm was able to represent itself more effectively to the consumer and have a broader base of resources upon which to draw as a function of delineating its programming throughout the United States and the world, seeking to incur further profitability by encouraging customers to spend even more as a function of accessing the content of a newly merged firm strikes this particular reader as nothing short of greedy. As such, even though the added expense to the end consumer was only four dollars a month, this monthly fee would push satellite radio subscriptions close to the $20 a month range; equating a satellite radio subscription with a low-cost Internet subscription and/4 some cell phone plans.

In such a manner, the increased costs of this access to further material, material that should necessarily come as free and an added benefit to the consumer, is something that fundamentally weakens the business approach that both of these newly merged firms could hope to effect upon the given market. Whereas it is true that Sirius XM Satellite Radio continues to exist and has a consumer base that grows by nearly 12,000 subscribers each and every year, the manner through which the merger was effected, at least within the mind of this reviewer, has fundamentally reduced the overall viability of the firm and decreased the number of subscriptions sold.

As is oftentimes the case within the business world, the synergy that is expected from a merger is oftentimes not realized when the merger itself has taken place. Work Cited Wood, David, Dunbar, Craig. Sirius XM Radio Canada. 1-16. University of Western Ontario 17 Dec. 2013.