Sirius XM Case Questions 1. Sirius XM has been very successful in the market. Many people use them today while they are driving in the car or working on the internet. Sirius XM has some strengths, but it also has some weaknesses. Sirius XM’s strengths are the suppliers and buyers. However, the weakness is the variety of substitute products. The suppliers for Sirius XM would be the people manufacturing the dashboards in the cars, the use of satellites, and different broadcasting channels. This is the company’s strongest areas in the five forces because it has some variety of supplies. Sirius XM cannot manufacture all of the supplies on its own. There needs to be someone else who can manufacture the dashboards in the vehicles. Because …show more content…
For example, return on sales ratios increase as the years progress in the company. Because the sales return increase throughout the years, Sirius XM must be doing well in sales overall. However, on net return on sales, the company did exceptionally well in 2012 because it had high net income, which caused the ratio to be extraordinary high. In 2010, it had the lowest ratio for net return on sales because the total expenses cost as much as the total revenue. The high ratio for total return on assets and return assets are also outliers to the rest of the years because it had a very large asset amount on the financial statements. In 2010, the ratios are also outliers because the net income are much lower than the other years in the financial statement. For return on stockholder’s equity, it had very high profitability ratios in 2011 and 2012. In 2011 and 2012, the net income was about as high in both of the capital accounts, which is why the both accounts had high ratios. On the return on investment capital ratio (ROIC), the year from 2011 to 2012 had a large jump because the net income increased from $43,055 to $426,961, which is one of the reasons for that type of gap. The ratios on the ROIC in 2010 and 2013 are extremely low because both of them have a significant difference with the net income and the total stockholder’s