XM has taken a more target product strategy, attempting to increase depth of programming services over the pervasive offering of devices. Industry analysts have commented that Sirius is now competing with Apple and their iPod series based on the breadth of their devices (Sirius Satellite Radio Investor Relations and SEC Filings 2008). Sirius' approach to personal satellite players has only been marginally successful and clearly given the operations expenses shown in Table 1's analysis of Income Statements. The breadth of the product line is forcing Sirius to also develop expertise in supply chain operations and fulfillment, two series of business processes that are significantly different than broadcasting and entertainment. Having to contend with a value-based business model with entertainment channels while also concentrating on a price-based model that must focus on continual price reductions forces Sirius into multiple and often confusing accounting systems and practices. It is highly recommended that...
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