SWOT Analysis A SWOT analysis is used to identify the internal strengths and weaknesses of an organization and the opportunities and threats from the external environment. After the analysis is complete, strategies can be developed to leverage core competencies and strengths to possibly improve weaknesses, take advantage of opportunities, or minimize threats.
Strengths. SiriusXM has developed a strong market share in the U.S., enabling it the ability to call itself the industry leader in terms of revenue. Becoming the industry leader is due in large part to contractual agreements with auto manufactures. In addition to automakers, the company’s ability to offer multiple platform devices, such as the mobile application and retail radio devices has allowed the organization to broaden its distribution. The ability to cast a wider net has resulted in increased subscription growth and revenues, leading to more profitability. Part of this profitability has …show more content…
The threat of widely available free substitutes and the economic stability of the U.S. go hand-in-hand. In terms of personal financial spend, subscription radio is at the top of the list when it comes to discretionary spend and typically one of first things people cut when money gets tight. If the economic outlook the U.S. becomes cloudy, subscribers may begin deactivating their accounts in favor of free substitutes. In addition to the U.S. economy, the U.S. government has the potential to effect ongoing operations at any time as new regulations are passed.
The SWOT analysis shows SiriusXM’s strong market position has allowed it to sustain a competitive advantage over its peer within the U.S. Nevertheless, intense free competition and economic hardship within the U.S. could result in lower subscription revenues, which would impact the company’s financial outlook. Company management should think about hedging against this risk by expanding internationally or offering a free radio option.
Key Success
Strengths. SiriusXM has developed a strong market share in the U.S., enabling it the ability to call itself the industry leader in terms of revenue. Becoming the industry leader is due in large part to contractual agreements with auto manufactures. In addition to automakers, the company’s ability to offer multiple platform devices, such as the mobile application and retail radio devices has allowed the organization to broaden its distribution. The ability to cast a wider net has resulted in increased subscription growth and revenues, leading to more profitability. Part of this profitability has …show more content…
The threat of widely available free substitutes and the economic stability of the U.S. go hand-in-hand. In terms of personal financial spend, subscription radio is at the top of the list when it comes to discretionary spend and typically one of first things people cut when money gets tight. If the economic outlook the U.S. becomes cloudy, subscribers may begin deactivating their accounts in favor of free substitutes. In addition to the U.S. economy, the U.S. government has the potential to effect ongoing operations at any time as new regulations are passed.
The SWOT analysis shows SiriusXM’s strong market position has allowed it to sustain a competitive advantage over its peer within the U.S. Nevertheless, intense free competition and economic hardship within the U.S. could result in lower subscription revenues, which would impact the company’s financial outlook. Company management should think about hedging against this risk by expanding internationally or offering a free radio option.
Key Success