Value Chain

Value Chain

General Administration

The teams contribution to enhance value chain was in identifying the strategies needed to boost the subscriber retention rates by Sirius Xm. The team identified improvements in customer service that would increase customer satisfaction. They identified the measurement indices to establish and ensure customer satisfaction such as making significant monetary investments to enhance the customer care department by establishing a professional team of customer care servicesto offer support.

In administration, the team made it possible for the customer care professional to chat with online customers. The idea was received positively by the customers and the prefer using the online channel whenever they needed to manage their accounts, purchase equipment or resolve other questions that they had.

The administration team also expanded the customer care service options that enabled the customers to perform more transactions from the online platform.

The administration team also combined the customer management systems in order to enhance the company’s receiver equipment into a single account.

The team also launched a mobile service application that allowed the customers to conduct transactions and account management from their smart phones.

Human Resource Management

The team’s contribution to enhance value chain was in identifying the strategies needed to boost the subscriber retention rates by Sirius Xm. The team identified improvements in customer service that would increase customer satisfaction. They identified guidelines to establish and ensure customer satisfaction such as making significant efforts to enhance customer support by selection and the hiring of customer care professionals.

Technology Development

The technology team contributed to value addition by obtaining FCC’s certification on Sirius Xm’s technology for use by the various manufacturers and distributors.

The use of enhanced technology reduced the costs of production while the identification of the right materials reduced the prices for the manufacturers and the distributers consequently.

The team ensured that radio manufacturing followed the four major settings. For example the dock and play radios used a technology which aimed at expanding the company existing list of channels and their broadcasting frequency.

The technology team developed a complex broadcasting technology and ensured that Sirius Xm radio was the only radio that could access the Sirius Xm’s new technology. The technology team was also responsible for the development of the Lynx radio model. The radio was made to be portable and installed with a combined interface for operation. The interface allowed the user to easily switch from the XM to the Srius broadcasting network. The technology team also developed the Xm Sky Dock which could be used with the aid of modern devices such as iPods and IPhones.


The procurement team contributed to value addition by bargaining for discounts in the prices of programs and their required contents. The aim was to lower the company’s cost of programming. The procurement teams of the two companies negotiated to reduce the premium price that the company was paying for high profile broadcast right

The team was also responsible for curbing the costs from duplicate programming. Before the merger, the two companies were programming look alike channels which operated as individual stations for every music genre.

The procurement team adopted a strategy to combine a majority of 70 channels that separately broadcasted music for the two companies into a single channel broadcasting for the subscribers of both companies.

Inbound Logistics


Outbound Logistics

Marketing &amp Sales


The inbound logistics contributed to value addition by enhancing hardware subsidies payments to various partners that supported the overall plan of Sirius Xm company.

Other subsidies were paid to large volume retailers and the handling of product warranty obligations of the radios sold. They also ensured loyalty payments and commissions on subsequent subscriptions. In addition, they ensured that retailers were reimbursed their costs for advertisements and other product awareness activities that were conducted on Sirius Xm’s behalf. The inbound logistics team was also responsible for ensuring that the dealers are enrolled into the service lane program in order to provide complimentary two months Sirius Xm subscriptions to qualifying customers who bought their vehicle with a factory equipped satellite radio.

The operations team at Sirius XM ensured value addition by reducing the inflated costs that had resulted from the unfair competition between the two companies before they merged their operations.

In addition, they

Streamlined the operations of the company to make profits in the upcoming periods.

The operations team was also responsible for restructuring the operations to remove duplication in order to add the costs incurred on programming for both Sirius and Xm.

The outbound logistics enhanced value creation by controlling and communicating with the satellites from the facilities located in North America. They also maintained the stations located in Panama and Ecuador with the aim of maintaining access to several broadcasting equipment.

. The team also ensured that the broadcasting equipment is constantly guarded by a third party broadcasting equipment.

The team also ensured that the Sirius Xm company did not manufacture the satellite radios. Their work was to ensure that the company designed the radios, established the specifications by either sourcing or describing the required parts.

The team

Was in control of both the logistics and ensued the production of the satellites and the concerned radios for internet reception.

The team organized a strategy that allowed both

manufacturers and distributors

Produce and distribute radios. It ensured that the manufacturers and distributors are licensed by the company to use its technology and other brands other than those of the Sirius Xm company.

The marketing team’s contribution to value addition included the continued employment of strategies to access new subscribers by distributing the radios in three channels. Auto makers, assorted retail locations which were nationally located and marketing through the company’s website.

The marketing team continued to use subsidies and incentives in order to induce auto makers to install the Sirius Xm radios in their autos during manufacture and to compel them to partner with SiriusXm in promoting the radio services to customers who bought or leased a new motor vehicle. Equipped with the radio. The marketing team further called for the establishment of the strategy to use the purchasers or hirers of motor vehicles as the source of new subscribers for the company. The team further ensured that 70% of the 15.6 million new vehicles sold in USA had been installed with the satellite radios. The strategy resulted into an increase from 33% in the year 2007 to 70% in 2014.

The services team contributed to value addition by availing a variety of services for customers.

The team ensured that the talk and entertainment programming channel included about 30 talk and entertainment channels that were designed for a broad range of audiences. It was also in charge of differentiating the Sirius Xm services from traditional radio and audio service competitors.

The team also ensured that it featured a multitude of popular talk personalities such as Howard stern and Oprah win Frey