Professional Documents
Culture Documents
A. SWOT analysis
Strength:
Weakness:
A lack of category and brand awareness is the key cause of TiVo’s lackluster sales because it’s the
first in digital video recorder category.
Functions were difficult and confusing to explain to customers.
It separated from customers by partners, resulting in ineffective communication with its
consumers.
The manufacturers’ reps couldn’t give TiVo the amount of support it required. It was hard to
convey a sense ofurgency to TiVo’s distribution partners.
High salesperson turnover rate in consumer electronic stores made training efforts ineffective.
It dependents on only a few suppliers.
Expensive product with additional service fee for recording and no reference point
Restricted promotional activities to public relations, animating its website, and a very limited mass
mediacampaign
O pportunity
Established players in traditional markets are entrenched and will implement defensive strategies
to protect their
market share (eroding traditional strategic segment barriers)
Legal challenges
Legislative agenda could restrict opportunities
Low barriers to entry for technology is easy to replicate
Many competitors– many are heavy weights.
Confusion in introduction:
Its functions were difficult and confusing to explain to customers. There was some confusion in the press
as tohow the new product category should be introduced. Oftentimes the press discussed the features of
the device,but it wasn’t always to the advantages of the company, as the first generation product was no
free of problems.
2) Price
High Price:
A $1,000 ticket meant TiVo was more expensive than most TV sets, and more than twice the price of a
good satellite system.
No reference point: With this service being so new there was no reference pricing point.
3) Place(Distribution)
Pa r tn e rsh ip:
TiVo built a partnership of consumer electronics superstar brands Sony and Philips for quick entry and
development. The two companies manufacture the black box, distribute it, and promote it to retailers.
Thus,
TiVo is separated from customers by partners.
National distribution:
TiVo became nationally available through electronic chains like Best Buy in September 1999. In
October 1999,
Circuit City and Sears were added; a national distribution was in place.
4) Promotion
Promotional restrictions:
While the hardware manufacturers took control of retail distribution and in-store communications, TiVo’s
promotional activities were restricted promotional activities to public relations, animating its website, and
a very
limited mass media campaign.
Ineffective role of early adopters as advertisers of TiVo
A catchy communication campaign with a boldly humorous tone that helps consumers envision
how TiVo restored the fun of television.
C. Market Segmentation
Improvements
o keep accelerating pace of change, and supply better services\
o Continue to revolutionize the way consumers watch and access home entertainment, by making
the TiVo DVRthe focal point of the digital living room.
Combine TiVo and Internet Searching tools(ex. Google)
1.to offer unequaled search capability
2.to aggregate content
3.To connect advertisers and consumer