Sign In
Not register? Register Now!
You are here: HomeCase StudySocial Sciences
Pages:
1 page/≈275 words
Sources:
2 Sources
Level:
APA
Subject:
Social Sciences
Type:
Case Study
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 3.6
Topic:

Economies of Scale and Scope Analysis Essay (Case Study Sample)

Instructions:

This paper required me to write what would happen if sirius xm acquire pandora in terms of economies of scale and scope

source..
Content:

Economies of Scale and Scope
Name
Department
Course Name
Professor
Date
Economies of Scale and Scope
Sirius XM, a satellite radio company, acquired Pandora, a music streaming service offering similar products. Sirius XM had many subscribers, and Pandora had loyal listeners monthly on its free and paid streaming. In that case, both companies were competing for subscribers while advancing the reputation of their brands. There are also other giant competitors, for example, Spotify and Apple Music (Iovine, 2018). Thus the best approach was for Sirius XM to acquire Pandora to realize economies of scale and economies of scope. Pandora mainly relied on ad-funded services for distributing their products, although it incorporated free streaming options. Sirius gives its subscribers free streaming to use Pandora, which encourages more subscribers.
The merger proves profitable since, currently, most subscribers enjoy streaming services in relation to old ones like downloading and watching offline (Kohli, 2020). Considering that both brands will distribute music services to their customers together, marginal cost will eventually reduce. Moreover, in economies of scope, the cost of distributing both products at once is less than distributing the music services separately, that is, Pandora streaming and Sirius radio services. The difference between economies of scale and scope is that economies of scope focus on cost advantage in mergers while economies of scale focus on average total production cost.
Synergy was created in the merger of the two companies since Sirius XM got the subscribers and the loyal customers of Pandora due to Pandora's reputable music streaming brand. Thus in terms of economies of scale

...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Summary of the Presenting Problem and Relevant History
    Description: The presenting issue concerns a thirteen-year-old boy, Michael, who has gone through physical as well as emotional abuse. Michael has two sisters that he adores so much, and he doesn't want them to undergo similar experiences. ...
    8 pages/≈2200 words| 5 Sources | APA | Social Sciences | Case Study |
  • Behavioral Psychology
    Description: Toby has an intellectual disability and Autism Spectrum Disorder. The kid tends to have behavior issues that require attention. For instance, he displays aggressive conduct, thus engaging in biting, grabbing, hitting, pinching, scratching, slapping, and pulling other people's hair. ...
    5 pages/≈1375 words| 5 Sources | APA | Social Sciences | Case Study |
  • The Argument of Aristotle About Polity
    Description: Aristotle was a Greek philosopher who concentrated on the theme of human happiness concerning the type of government organization. He argued that a system of government was expected to enhance the comfort of the subject rather than subjecting them to unnecessary pressure that might affect level of happiness...
    8 pages/≈2200 words| No Sources | APA | Social Sciences | Case Study |
Need a Custom Essay Written?
First time 15% Discount!