Introduction
In late 1990s, XM radio was planning to introduce new system of running radio channels. Robert Acker, director of strategic planning for XM radio figured out that there is potential in radio channels such that people may be willing to pay for subscription of a radio channel, if they could be able to provide high quality content, service across the United States. For this purpose, there were many obstacles to be considered by strategists of the company. XM radio was only on papers at that time and people did not know much about the company. XM was planning to provide its service all over United States, at that time SIRIUS was the only company in United States to have been granted a license for satellite radio from the Federal Communications Commission (FCC). Therefore, SIRIUS was a great competitor for XM radio. On the other hand, it was not easy for AM radio to convince people that paying for subscription of their radio station would be worth. For the purpose of implementing these aspirations, it is important to have good strategies. The paper presents some strategies and possible decisions that could help XM radio to implement the plan.
Target right customers
There have always been some loyal listeners of radio such as people related to the field of truck drivers, daily
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Business of running radio channels have been a business of high profit percentage. Major finance is required in taking license from government, then the cost increases with the increase in area to be covered by a radio station. So, XM radio can start with a relatively lesser area of broadcast and increase their operations as they gain position in market. In such a way, they could be able to cut on cost and convince investors that they are going with the plan and are sure to make money smartly in near