A company’s strategy provides direction and guidance, in terms of not only what the
company should do but also what it should not do. A company must develop or improve that
business model at the core of every sound strategy. A business model is management’s blueprint
for delivering a valuable product or service to customers in a manner that will generate revenues
sufficient to cover costs and yield an attractive profit. According to our textbook, the definition of
strategy is about competing differently – doing what rival firms don’t do or what rival firms can’t
do. This doesn’t mean that the key elements of the company’s strategy have to be 100 percent
different, but rather that they must differ in at least some important respects. Here are the
differences I found between Pandora, SiriusXM, and Over-the-Air Broadcast Radio even though
they have many similarities.
Pandora provided free-of-charge internet radio service, allowed IT users to create up their
own personalized music and others. It also offered programming interrupted by brief, occasional
ads which is eliminated for onetime subscribers. Pandora targeted to different audiences and sold
to local and national buyers and allowed a small advertising-fee called Pandora One. Pandora’s
profitability dependent on generating sufficient advertising revenues and subscription revenues to
cover costs and provide attractive profits.
SiriusXM offered a monthly subscription fee, and also offered subscribers steaming
internet channels and the ability to create personalized commercial-free stations for online and
mobile listening and occasional ads. It provided satellite-based music, news, sports, national, radio
programming, etc. SiriusXM revenue generation is based on monthly subscription fees, advertising