1. What does a SWOT analysis reveal about Sirius XM’s overall situation as of 2014?

2. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Sirius XM is employing?Case 11 Teaching Note Sirius XM Satellie Radio Inc. in 2014

3. What is your evaluation of Sirius XM’s financial performance during the 2010–2013 period ?

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2010 2011 2012 2013 Income statement data Revenue: Subscriber revenue Advertising revenue,? net of agency fees Equipment revenue3 Other revenue4 $ 2,55,414 $2,414,174 64,517 $2,962,665 $3,824,660 73,672 82,320 89,288 71,355 71,051 73,456 80,573 266,946 274,387 283,599 344,574 Total revenue 2,816,992 3,014,524 3,402,040 3,799,095 Operating expenses: Royalty and revenue-sharing payments 435,410 305,914 241,680 471,149 281,234 551,012 677,642 290,323 Programming and content Customer service and billing 278,997 259,719 294,980 320,755 Satellite and transmission 80,947 75,902 72,615 79,292 Cost of equipment Subscriber acquisition costs Sales and marketing 35,281 33,095 31,766 26,478 413,041 434,482 474,697 495,610 215,454 248,905 48,843 222,773 291,024 Engineering, design and development General and administrative 45,390 53,435 57,969 240,970 238,738 261,905 262,135 Depreciation and amortization Restructuring, impairments, and related costs Total operating expenses Income from operations Other income (expense): 273,691 267,880 266,295 253,314 63,800 2,351,578 2,338,407 2,530,015 2,754,542 465,414 676,117 872,025 1,044,553 (295,643) (120,120) (265,321) (132,726) Interest expense, net of amounts capitalized Loss on extinguishment of debt and credit facilities, net Interest and investment income (loss) Loss on change in value of derivatives (304,938) (7,206) (204,671) (190,577) (5,375) 73,970 716 6,976 (20,393) Other (loss) income Total other expense 3,399 3,252 (226) (397,557) 1,204 (417,739) (234,922) (407,461) Income before income taxes 47,675 441,195 474,468 636,092 Income tax benefit (expense) (4,620) (259,877) (14,234) $ 426,961 2,998,234 Net income $ 43,055 $3,472,702 377,215 Net income per common share: Basic $0.01 $0.07 $0.55 $0.06 Diluted $0.01 $0.07 $0.51 $0.06 Dividends paid on common stock $0.05 Weighted-average common shares outstanding: 4,209,073 6,873,786 Basic 3,693,259 3,744,606 6,277,646 6,384,791 Diluted 6,391,071 6,500,822 Balance sheet data $ 773,990 1,276,954 Cash and cash equivalents: $ 586,691 $ 520,945 $ 134,805 Total current assets 991,775 1,828,182 1,419,013 Total assets 7,383,086 7,495,996 9,054,843 8,844,760 Total current liabilities 2,349,709 2,247,596 2,314,588 2,948,904 Long-term debt, including related-party debt Total stockholders' equity 3,021,763 3,012,351 2,430,986 3,093,821 $ 207,636 $ 704,145 $ 4,039,565 $ 2,745,742 2010 2011 2012 2013 Income statement data Revenue: Subscriber revenue Advertising revenue,? net of agency fees Equipment revenue3 Other revenue4 $ 2,55,414 $2,414,174 64,517 $2,962,665 $3,824,660 73,672 82,320 89,288 71,355 71,051 73,456 80,573 266,946 274,387 283,599 344,574 Total revenue 2,816,992 3,014,524 3,402,040 3,799,095 Operating expenses: Royalty and revenue-sharing payments 435,410 305,914 241,680 471,149 281,234 551,012 677,642 290,323 Programming and content Customer service and billing 278,997 259,719 294,980 320,755 Satellite and transmission 80,947 75,902 72,615 79,292 Cost of equipment Subscriber acquisition costs Sales and marketing 35,281 33,095 31,766 26,478 413,041 434,482 474,697 495,610 215,454 248,905 48,843 222,773 291,024 Engineering, design and development General and administrative 45,390 53,435 57,969 240,970 238,738 261,905 262,135 Depreciation and amortization Restructuring, impairments, and related costs Total operating expenses Income from operations Other income (expense): 273,691 267,880 266,295 253,314 63,800 2,351,578 2,338,407 2,530,015 2,754,542 465,414 676,117 872,025 1,044,553 (295,643) (120,120) (265,321) (132,726) Interest expense, net of amounts capitalized Loss on extinguishment of debt and credit facilities, net Interest and investment income (loss) Loss on change in value of derivatives (304,938) (7,206) (204,671) (190,577) (5,375) 73,970 716 6,976 (20,393) Other (loss) income Total other expense 3,399 3,252 (226) (397,557) 1,204 (417,739) (234,922) (407,461) Income before income taxes 47,675 441,195 474,468 636,092 Income tax benefit (expense) (4,620) (259,877) (14,234) $ 426,961 2,998,234 Net income $ 43,055 $3,472,702 377,215 Net income per common share: Basic $0.01 $0.07 $0.55 $0.06 Diluted $0.01 $0.07 $0.51 $0.06 Dividends paid on common stock $0.05 Weighted-average common shares outstanding: 4,209,073 6,873,786 Basic 3,693,259 3,744,606 6,277,646 6,384,791 Diluted 6,391,071 6,500,822 Balance sheet data $ 773,990 1,276,954 Cash and cash equivalents: $ 586,691 $ 520,945 $ 134,805 Total current assets 991,775 1,828,182 1,419,013 Total assets 7,383,086 7,495,996 9,054,843 8,844,760 Total current liabilities 2,349,709 2,247,596 2,314,588 2,948,904 Long-term debt, including related-party debt Total stockholders' equity 3,021,763 3,012,351 2,430,986 3,093,821 $ 207,636 $ 704,145 $ 4,039,565 $ 2,745,742

Answer rating: 100% (QA)

3 Situation of Sirius XM Radio As of 2014 Sirius XM is standing at not a very good position this is because as the SWOT analysis reveal Sirius still has some weaknesses in spite of their internal stre... View the full answer