Xm Radio

XM Satellite Radio is one of the three satellite radio services in the United States and Canada, operated by Sirius XM Holdings. It provides pay-for-service radio, similar to cable television. Its service includes 73 different music channels, 39 news, sports, talk and entertainment channels, 21 regional traffic and weather channels and 23 play-by-play sports channels. XM Satellite Radio is now moving towards going international and the country we chose to expand to first is Ireland. We chose Ireland as an entry point into the international market because the country provides tax benefits for the components and electronics we need to use, including, but not limited to, the satellite plastics and casings. Product assembly will occur in the United States since that is still our primary market. However, the new entry market is still a key component for success. As leaders of the company, we have to evaluate our best options for product recognition. We also must determine what level of control we want to have on the product itself. Our strategy to penetrate the international market would be a three-tiered approach through the use of trading houses, export and import agents, and piggybacking. We must also take into consideration several factors when conducting business in a foreign market, such as the laws and regulations of the country, currency exchange rate. Finally, we must be proficient in analyzing the needs of the people and establish effective advertising and promotion.

A trading house is an independent company that provides support services for firms engaged in exporting. This may include warehousing, shipping, insuring and billing on behalf of the client. In addition, export trading companies may help manufacturers find oversea buyers and provide them with other information pertaining to the market. As a new company entering the satellite radio market, trading companies offer huge advantages to penetrate the market. We feel that it is necessary to maintain a...