XM Satellite Radio is a radically new way to listen to radio. Management should develop a marketing strategy for the launch of the company and sector. A critical aspect of this strategy is to determine which of the two business models of the company will pursue. Should it focus mainly on charging customers a monthly fee or on selling advertising time to advertisers? This decision is closely linked to the target market and choosing the optimal price point for a monthly fee and radios. Market research commissioned by XM provides a rich understanding of these issues. In addition, XM management to find out how to partner with the leading electronics manufacturers. Consideration of its market share and presence channels are essential to the ultimate success of the integration of XM satellite radio in home and car audio. Formulates its plan, XM must take into account the competitive environment in the first place is out of the radio (AM and FM), which has existed for many years and made available for free, as well as a second supplier of satellite radio (Sirius). Includes color exhibits. "Hide
by David B. Godes, Elie Ofek Source: HBS Premier Case Collection 25 pages. Publication Date: July 14, 2003. Prod. #: 504009-PDF-ENG
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