Siriusxm Porter's 5 Forces Analysis

Porter’s Five Forces Model of Competition The five forces analysis addresses industry factors affecting competition within the areas of rivalry, barriers to entry, bargaining powers of suppliers and buyers, and the threat of substitutes. For SiriusXM to remain competitive within the radio broadcast industry, they must carefully monitor and address each of these forces. Rivalry Intensity – (Strong). Rivalry within the radio broadcast industry is a strong force, as many options are available to consumers. Whether it is online/streaming or terrestrial broadcasting, large competitors such as, iheart media, Cumulus Meida, and Pandora put significant pressure on SiriusXM do to their free program offerings and basic device support requirements. Barriers to Entry – (Strong). Whether one is looking to enter the terrestrial, satellite, or even online radio broadcast industry, many barriers to entry exist, making this a strong force of competition. The primary barrier to entry is centered on obtaining broadcast licensing from the FCC; which is not accepting applications for new broadcast stations at the present time. The second biggest barrier is the cost of infrastructure, such as, radio frequency towers, satellites, repeater networks, and broadcast …show more content…
– In an industry where free terrestrial AM/FM radio is still the primary source of listener entertainment, the bargaining power of buyers is strong. With widespread availability of free radio, SirisuXM is truly at a disadvantage when it comes to attaining new listeners as a result of their specific device platform requirement. To attain new customers, SiriusXM must get listeners to buy a device capable of receiving the unique satellite signal and pay a monthly subscription fee. If the device and subscription weren’t enough of a hurdle, add in the fact that paying for a monthly radio service is the ultimate of discretionary spend and probably the first savings measure one would look