Interpretation of SiriusXM Satellite Radio TOWS Matrix

Interpretation of TOWS Matrix

The TOWS matrix presents key points of information obtained during the SWOT analysis in a way that is useful in formulating strategy options. SiriusXM’s largest concern at present is its debt, which readily consumes free cash flow and limits the company’s expansion possibilities. To its credit, SiriusXM is the only company in the satellite radio market, and it offers customers a wide variety of digital content commercial-free around the clock. Holding the company back, however, are its significant debt load, its high operating costs, and its dependence on the US auto market for new customers. The recent economic crisis in the US has caused a slow-down in automobile purchasing, which has ultimately affected SiriusXM’s subscriber growth. The company previously reported that total subscribers decreased 2% between Q4 2008 and Q1 2009, to about 18.6 million (SiriusXM, 2009). The company’s opportunities for turning the subscriber trend positive and boosting long-term prospects for recovery include tinkering with its pricing model, making the service more accessible for mobile users, and expanding the satellite radio service to foreign countries. The following presentation of R/B and I/O action strategies considers these SWOT items, and focuses on different aspects of them to form four unique choices. Currently, SiriusXM pursues a focused differentiation business-level strategy because it serves a niche market where special product attributes are present.



SiriusXM Radio, Inc. (2009, May 7). Sirius xm radio reports first quarter 2009 results. Retrieved from http://investor.sirius.com/releasedetail.cfm?releaseid=382353
SiriusXM Radio, Inc. (2010, January 19). Sirius xm adds 257,000 net subscribers in the fourth quarter. Retrieved from http://investor.sirius.com/releasedetail.cfm?ReleaseID=438640
SiriusXM Radio, Inc. (2010, April 23). Siriusxm radio, inc. pricing. Retrieved from http://www.xmradio.com/servlet/ContentServer?pagename=XM/Page&c=Page&cid=1239034455913
Lieberman, D. (2007, February 20). How Sirius-xm merger would cut companies' costs still unclear. Retrieved from http://www.usatoday.com/money/media/2007-02-19-xm-sirius-talks_x.htm
WorldSpace Inc. (2009, December 31). Worldspace inc announcement. Retrieved from http://www.worldspace.com/index_wsmsg.html