...TIVO 2005 CASE ANALYSIS I. Company Background * TiVo, a United States corporation based in Alviso, California was formed in 1997 by Ramsay and Jim Barton and became a leading provider in the digital video recorder (DVR) market in the early 2000s. * Through a system that is integrated with the set-top boxes of satellite and cable providers, TiVo devices can digitize and compress videos from any source and therefore enables subscribers to record programs without video tapes or DVDs, allowing them to watch the programs at their own preference. * TiVo’s mission is to “to revolutionize the way consumers watch and access home entertainment by making TiVo the focal point of the digital living room, a center for sharing and experiencing television, music, photos and other content. TiVo connects consumers to the digital entertainment they want, where and when they want it” (TiVo Investor Relation). II. Utility Map of TiVo’s DVR | Purchase | Delivery | Use | Supplements | Maintenance | Disposal | Customer productivity | Free trial | | Two weeks of EPG information, TiVo’s “showcase” service, TiVo’s Series2 | Season Pass, Wishlist, HME | | | Simplicity | | | Simple clicking | | | | Convenience | | | User-friendly interface, HMO, TiVo to Go | Conflict resolution system | | | Risk | | | Difficult installing, help needed from customer service, brand education | | | | Fun and Image | | | | | | | Environmental Friendliness | | | | |...
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...Case study: Tivo Tivo delivers broadcasted content, makes house software and large storage devices, and provides software features to skip the advertisement. In deciding where to position itself in the value chain, TiVo management initially focused on software and service. To entice brand-name CE firms to manufacture and distribute TiVo, the company subsidized CE manufacturers up to $200 per box. After TiVo discontinued CE subsidies in 2002 in an effort to conserve cash, management discovered that there was not enough profit in the TiVo Series2 box for CE manufacturers to make their required margins. TiVo reduced the number of parts, outsourced to a very efficient contracting firm, and started selling boxes. In addition to the retailer deals, TiVo worked with manufacturers to gain broader distribution for the TiVo technology. Porter’s Five Forces Analysis The Threat of new entrants is high. TiVo confronted a rash of new entrants. Biggest part of the technology, such as PC, hard drives, MPEG is available to anyone. For hardware, capital requirements are high and TiVo is defending its intellectual property patents aggressively to compete with new entrants. While patents have contributed to keep TiVo’s advantage, litigation has been costly and time-consuming. Besides, TiVo also focused on innovating new technology and features. For software, capital requirements are low and therefore the threat of new entrants is higher than for hardware though the reputation of TiVo remained...
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...Case Two- TiVo ADMG4055- Seminar in Business Policy Fall 2013 Hail Thy TiVo The company TiVo was created by Mike Ramsey and Jim Barton, these two are veterans from the company Silicon Graphics, SGI. Both were very involved in the entertainment industry, Barton was involved in an on-demand video system and sponsored the Linux system while Ramsey worked on special effects for film companies. It was decided that the Linus software, an open source system, would be just what the TiVo product needed as its operating system foundation. This system combined with Barton’s idea to store a live TV signal on a computer and play it back was the real beginning of the product TiVo. Both inventors of TiVo knew they had a special idea that would appeal to consumers everywhere, Ramsey commented; “Wow, you know, you can pause live television – isn’t that a cool thing?” (J. David Hunger, 2012) This idea is appealing to consumers because it gives the average TV viewer the ability to watch what they want at their own leisure, more control for viewers. Strategic Posture Their mission for the company is to “redefine home entertainment by providing consumers with an easy and intuitive way to record, watch, and control television and receive videos, pictures, and movies from cable, broadcast, and broadband sources.” (TiVo Strategic-Paper)The objectives planned out by Ramsey and Barton were to create a home network-based multimedia server in which content to “thin” clients would be streamed...
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...Case 6 - TiVo Company Overview TiVo founders Jim Barton and Michael Ramsay left Silicon Graphics in 1997 and the two dynamic entrepreneurs decided they would reinvent how people can watch television. TiVo was a ground-breaking invention that allowed viewers to control what they watched, when they watched it. Fourteen months after the launch of TiVo, they had 42000 subscribers with a rate of 14000 new subscribers per quarter. With 102 million TV-watching households in the US, this was about a 0.04% penetration rate. This revolutionary system allowed consumers to be fully in control of their media consumption- something never offered before. TiVo to Consumers To TiVo consumers, the ability to control what they wanted when they wanted was a revolutionary way to watch TV. TiVo held many distinct features that made the television experience unique to their consumers. The electronic program guide (EPG) was the user’s interface with the device that let them find out which shows to watch. EPG allowed access to previews for shows that could be scheduled for recording, a video magazine, a set of network showcases, and an on-screen TV guide. Another popular feature was the season pass that allowed users to specify their favourite show so that TiVo would automatically record all the episodes. Consumers also had the option to thumbs up or thumbs down certain shows so subsequently, TiVo could suggest TV programs that may interest them, further enhancing the individual personalization...
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...TiVo 2007: DVRs and Beyond TiVo released its HD DVR in August 2007 to help get the company back on track through recapturing the market shares over the generic DVR competitors. Tom Rogers had experience in this field through his chairman duties as well as being CEO of Primedia and president of NBC cable. The new HD DVR was launched in November as Rogers created a strategy to guide TiVo to being a legacy DVR maker. Did the company make rational investing decisions while working in these business areas while the DVR system has placed TiVo on the map, has the company overall been a success? In the beginning TiVo lacked the desire for improvement even though the company had accumulated approximately $500 million in losses. After hitting a 3-year low the company was hit with many crippling news and decisions. Leading up to the release of the DVR system, TiVo’s market share was worth much less than its actual value, however Rogers was not concerned as the HD DVR would place more power in the consumers hands through the ability to access video content via broadband internet. Through the DVR, TiVo will act as the facilitator to its third-party content distributors. As TiVo worked to develop various broadband content services for its consumers through its media industry partners it created a major offering, which was TiVoCast a system that enables users to access video content feeds though the main TiVo menu. As many questioned TiVo’s push for broadband distribution,...
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...I | | Current Situation ……………………………………………………… | 4 | | A | Current Performance………………………………………………………. | 4 | | B | Strategic Posture…………………………………………………………… | 4 | | | | | II | | Strategic Managers……………………………………………………… | 6 | | A | Board of Directors………………………………………………………… | 7 | | B | Top Management…………………………………………………………. | 8 | | | | | III | | External Environment ………………………………………………… | 9 | | A | Natural Environment………………………………………………………. | 9 | | B | Societal Environment……………………………………………………… | 9 | | C | Task Environment…………………………………………………………. | 10 | | | | | IV | | Internal Environment …………………………………………………… | 11 | | A | Corporate Structure……………………………………………………….. | 11 | | B | Corporate Culture…………………………………………………….……. | 12 | | C | Corporate Resources……………………………………………………… | 13 | | | Marketing……………………………………………………………….…. | 13 | | | Finance……………………………………………………………………. | 15 | | | Research & Development……………………………………………….… | 16 | | | Operations and Logistics……………………………………………….… | 17 | | | Human Resources Management…………………………………………… | 18 | | | Information Technology…………………………………………………… | 19 | | D | Summary of Internal Factors………………………………………………. | 20 | | | | | V | | Analysis of Strategic Factors……………………………………………. | 21 | | A | Situational Analysis ……………………………………………………… | 21 | | B | Review of the Mission and Objectives…………………………………… | 22 | | | | | VI | | Strategic Alternatives and Recommended...
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...ALICE M. TYBOUT AND JULIE HENNESSY TiVo As Brody Keast, TiVo’s senior vice president of marketing, pored over research reports and market forecasts, his excitement grew. In one report Odyssey Research concluded, “We have never seen a product test better in terms of consumer intent to purchase.” A report from AC Nielsen Vantis was equally enthusiastic, noting, “Of forty-four consumer electronics concepts we have tested, we’ve never had a product test as high in what we call the trifecta: intensity of liking, new and different, and need fulfillment.” TiVo’s market prospects seemed even brighter than Keast had dared to hope. At the same time, Keast recognized that the TiVo launch would need to be managed carefully. The company’s goal was extremely ambitious: it hoped to revolutionize how Americans watch television and become a central player in the emerging interactive TV industry. Competitors such as ReplayTV had similar products and designs on the future, so TiVo’s success was far from guaranteed. Keast believed that the product positioning at launch would play a key role in determining who would win the race to personalize television viewing. The Vision Americans have a love/hate relationship with television. In all, 98 percent of the country’s 100 million households own at least one TV. On average, each household has 2.4 TVs and spends seven hours and fifteen minutes per day viewing television. In 1999, 78.1 million households spent $34.4 billion to receive cable TV service...
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...Thetj decide what we watch and when we watch it. ..." "Network programmers-who needs them? Program your own network. TiVo. TV your way." Between these two lines, the TiVo commercial showed a pair of burly men throwing a TV network's chief programmer out of the window of a tall office building. Brodie Keast, TiVo's vice president of marketing and sales, had replayed the ad a dozen times on that morning of May 2000, and he still found it to be as hilarious as the first time he saw it. The TiVo digital video recorder, beyond its many advanced features, made a big idea real-if you owned the TiVo black box and subscribed to the TiVo service, you could really control what you watched and when you watched it. TiVo's marketing team intended to get that big idea across through a catchy communications campaign, with a boldly humorous tone that would help consumers envision how TiVo restored the fun of television. Fourteen months into the launch, TiVo had signed up 42,000 subscribers, with a current rate of 14,000 new subscribers per quarter. With 102 million TV-watching households in the U.S., that was only about .04% penetration, despite availability in most major consumer electronics stores across the nation. Yet everyone who owned TiVo seemed satisfied with it, with 72% of owners even claiming that TiVo had made TV viewing "a lot more enjoyable." Ninety percent said they would recommend it to family and friends. Early...
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...402 DESIGNING AND MANAGING THE SUPPLY CHAIN rlX\s '-----' E ~\C)I\ The Great Rebate Runaround Ah, the holiday shopping season: Santa Claus, reindeer-and rebate hell. Those annoying mail-in offers are everywhere these days. Shoppers hate col lecting all the paperwork, filling out the forms, and mailing it all in to claim their $10 or $100. But no matter how annoying rebates are for consumers, the country's retailers and manufacturers love them. From PC powerhouse Dell to national chains Circuit City and OfficeMax to the Listerine mouth wash sold at Rite Aid drugstores, rebates are prolifer ating. Nearly one-third of all computer gear is now sold with some form of rebate, along with more than 20% of digital cameras, camcorders, and LCD TVs, says market researcher NPD Group. Hal Stinchfield, a 30-year veteran of the rebate business, calculates that some 400 million rebates are offered each year. Their total face value: $6 billion, he estimates. Office-products retailer Staples says it and its vendors alone pay $3.5 million in rebates each week. TAX ON THE DISORGANIZED sees lower redemption rates during the Christmas shopping season, when consumers may be too dis tracted to file for rebates on time. Credit this bonanza for retailers and suppliers partly to human nature. Many consumers are just too lazy, forgetful, or busy to apply for rebates: Call it a tax on the disorganized. Others think the 50 cents, $50-or even $200---is just not worth the hassle of...
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...TIVO Case Analysis by Agata Amorim Analyze the situation from the consumer’s standpoint. What is TiVo? TiVo is a black device in a box shape, which incorporates a digital video recorder that allows viewers to watch what they want, when they want to watch it, and it allows pause and instant replay functions of live TV by storing information on a hard drive. It enables a person or a group of persons in a household to create their own personal television schedule by using the regular television programs. The additional features include the ability to skip commercials, and input their own viewing preferences. What factors facilitate its adoption? * In contrast with other devices, TiVo allows consumers to record over 30 hours of television without the need to use video tapes or other types of storage units. * TiVo offers independence to viewers since it allows them to watch what and when they want. The device also allows viewers to pause live television and attend to their needs like cooking, answering the telephone, and going to the bathroom, and other activities. * It makes TV viewing enjoyable, backed by the fact that everyone who owned TiVo seemed satisfied with it and 72% of the owners claimed that TiVo had made TV viewing a lot more enjoyable. * Also, TiVo offers better recording quality from its digital technology, easy-to-use features for setting up the recording as well as the capability to skip commercials fast. * TiVo also have popular features...
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...Marketing Management Assignment –Case Analysis #1- TiVo 1. What is TiVo? Tivo is a digital recorder that helps viewers to take control of what they watch. The features of Tivo are recording programs as per viewers’ request, suggesting the programs according to viewers’ habits, ability to skip commercials, and so on. What factors facilitate its adoption? a. Recording the programs – easy to record, stop, rewind, and schedule recording the shows. b. Skip the commercials – empowering the viewers to take control of what they are watching. c. Electronic program guide (EPG) TiVo applies i) Previews for shows to schedule recording easily with one push of button. ii) Season pass- by pressing a “thumbs up” and “thumbs down” button, users can specify their favorite show and then TiVo will record them automatically. iii) Suggestion- TiVo can track users’ preference and make suggestions. What factors made adoption difficult? a. Retail execution- Salesmen in distributors turned over fast which made it hard to train them explaining to customers properly. In addition, there were various ways for salesmen to sell TiVo. b. Pricing- the price seemed too high to be accepted by customers. c. Awareness- the degree of awareness for TiVo remained weak and consumer remained inert because it is not their priority to improve TV viewing. Who is TiVo best suited for? According to the research, TiVo users mostly consisted of members who...
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...in rebates each week. TAX ON THE DISORGANIZED. Why the rage for rebates? The industry's open secret is that fully 40% of all rebates never get redeemed because consumers fail to apply for them or their applications are rejected, estimates Peter S. Kastner, a director of consulting firm Vericours. That translates into more than $2 billion of extra revenue for retailers and their suppliers each year. What rebates do is get consumers to focus on the discounted price of a product, then buy it at full price. "The game is obviously that anything less than 100% redemption is free money," says Paula Rosenblum, director of retail research at consulting firm Aberdeen Group. The impact on a company's bottom line can be startling. Consider TiVo (TIVO). The company caught Wall Street off guard by sharply reducing its first-quarter loss to $857,000, from $9.1 million in the same period last year....
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...There are a lot of issues have been shown when TiVo started, it faced Slower start in number of subscribers than estimated • Losing money, total cost spent on Sales and Marketing greatly exceeds total revenues so little significance in increasing revenues although they spent a lot in Marketing and advertising. • Profile of subscribers remains narrow – Married couples, high income families, and the middle aged consumer make up high percentage of TiVo subscribers – Singles, low and middle income households, the young and the elderly consumer remain a small percentage of TiVo subscribers • Customer satisfaction and growth - Post purchase attitude reflects high level of customer satisfaction - But volume of sales still low • What is the risk should be considered? - Small percentage of purchaser for middle and low income households - Awareness and intention to buy are rising through good advertising but there is no action. - Customers influenced by friends or family prior to purchase (From the survey 57.5%) Some statistical results of TiVo research: • Customer Satisfaction - 90.1% of customers satisfied with TiVo - 96.4% would recommend TiVo - 77.4% say life is better • Purchase Behavior - 70.1% of new subscribers knew somebody else who had previously purchased a TiVo - 57.5% of new subscribers were most influenced by friends - Shows a strong relationship to social references • Purchase demographics - As of Nov. 2000...
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...Weaknesses ✓ IFAS 5. STRATEGIES ALTERNATIVES AND RECOMMENDED STRATEGY ✓ SFAS ✓ TOWS ✓ Strategies Alternatives ✓ Strategies recommendation 6. Implementation ✓ Corporate & business strategies ✓ Functional strategies 7. EVALUATION AND CONTROL ✓ Establishment of Standards ✓ Evaluation of Performance Jim Barton and Mike Ramsay were the founders of TiVo inc. both founders were working at silicon graphics and were very much involved in entertainment industry .Jim Barton was involved with an on demand video system. Mike Ramsay was responsible for products that created movies’ special effects for companies like ILM and Pixar. Both thought to redefine television entertainment by delivering the promise of technologies that up until then had only been promised, incorporated in Delaware and originally named teleworld, TiVo was founded as a company on august 4, 1997. The hardware was designed by Tivo inc. but manufactured by other companies including...
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...consumers’ mind is a black box which has the characteristics and decision process influenced by the marketing stimuli i.e. the 4Ps and the environment itself. The same happens with TiVo. Despite of having a revolutionary product with a bundle of innovative and productive features, TiVo suffers disappointing sales performance during 1999. TiVo faced a slow start which was supported by the marketing team as lack of awareness and hard to communicate functionalities, the lesson of initial slow sales became a catalyst for a new communications strategy. The marketing team had to come up with a new marketing campaign and positioning strategy. The marketing team can adopt three options of positioning TiVo: 1) as a Digital Video Recorder (DVR) 2) a television network that users create on their own 3) as an enhanced VCR. According to Keast, “there is a mystery in the sharp contrast between the inertia of prospects and the evangelical zeal of TiVo users”. 1. The Gap between Conventional Devices and the New Technology: The mystery lies in closing the gap between the consumers’ affiliation with conventional electronic devices and the technologically innovative products. Consumers would prefer to buy a product which they can easily relate to an already existing product and in TiVo’s case, it can be the VCR. TiVo can be thought of as an...
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