Ford and sirius partnership

A SUCCESFUL PARTNERSHIP BETWEEN FORD AND SIRIUS XM

I. INTRODUCTION
The car business in America needs continuous innovations to compete with the growing international rivalry that offer quality and functionality with more accessible prices. Ford as Innovator Company in the auto industry establish strategic partnership with one of the most important companies of satellite radio inAmerica with the intention to catch the attention of costumers that use to listen radio specially while driving somewhere.
Undeniably Ford was one of the earliest associations of Sirius and both companies have enjoyed a win-win situation ever since. Satellite radio service practically sells itself. Most cars produced by Ford are equipped with factory-installed receivers along with several months ofservice. Within 90 days of the end of the trial offers, 45% of car owners become self paying costumers.
In the other hand, the Ford cars are equipped with a satellite system that offer news, comedy and sports channels along with the Sirius Travel link navigation system that offer valuable information about weather and traffic in uninterrupted coast to coast coverage. This relationship providescostumers with the best of both worlds: “innovative technology, style and driving experience”.
In conclusion, each Ford that leaves the dealer’s shop is equipped with two Satellite Radio subscriptions rather than one. While Ford continues to increase production levels, Sirius XM’s free cash flow will continue to rise, and let’s face it; As long as Ford includes SYNC in their vehicles, Sirius XMwill always be a part of it.
II. OBJECTIVE
The purpose of this paper is to analyze the development of effective business relationship between a global telecommunications provider (Sirius XM) and a multinational utilities company (Ford). This relationship is based on criteria as cost, quality, relationship management and technological capability and is designed as a long term relationship.III. BRIEF HISTORY
A. FORD
Ford Motor Company (NYSE:F) is the world’s second largest automaker with operations in more than 200 markets on six continents. The company's world headquarters is in Dearborn, Michigan, a suburb of Detroit. Founded by Henry Ford on June 16, 1903 its automotive brand includes Ford and Lincoln brands; Ford also owns a small stake in Mazda in Japan and Aston Martin inthe UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile. Ford discontinued the Mercury brand at the end of 2010.
Ford produce 5.532 million automobiles and is about 213,000 employees at around 90 plants and facilities worldwide. During the automobile crisis, Ford’s worldwide unit volume dropped to4.817 million in 2009. In 2010, Ford earned a net profit of $6.6 billion and reduced its debt from $33.6 billion to $14.5 billion lowering interest payments by $1 billion following its 2009 net profit of $2.7 billon. Starting in 2007, Ford received more initial quality survey awards from J.D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at the top of their categoriesand fourteen vehicles ranked in the top three. Related services include Ford Credit, Hertz and Quality Care.
B. SIRIUS XM
SIRIUS (NASDAQ: SIRI) is the only satellite radio service bringing listeners more than 100 streams of music and entertainment coast-to-coast. SIRIUS offers 60 music streams with no commercials, along with over 40 world-class sports, news and entertainment streams tolisteners 24 hours. Satellite radio products bringing SIRIUS to listeners in the car, truck, home, RV and boat are manufactured by Kenwood, Panasonic, Clarion and Audiovox, and are available at major retailers including Circuit City, Best Buy, Car Toys, Good Guys, Tweeter, Ultimate Electronics, Sears and Crutchfield. SIRIUS is the leading OEM satellite radio provider, with exclusive partnerships with...