Tivo

1. Analyse the situation from the consumer's standpoint. What is TiVo®? What factors facilitate the adoption? What factors make adoption difficult? Who is TiVo best suited for?

Introduction

From a consumerЎ¦s standpoint, the introduction of new innovation in technology might create confusion and uncertainty to them. In many instances consumers may adopt an expectative approach of Ў§wait and seeЎЁ in order to obtain more information and reaction from the market prior to making a decision to purchase that particular product. It is imperative that companies must be aware of this so that it focuses its resources and efforts to ensure that the new products launched is successful.

What Is TiVo?

In essence, TiVo is a digital video recorder which enables a person or a group of persons in a household to create their own personal television schedule by using the regular television programs. It offers consumers the choice of when and what to watch through TiVoЎ¦s box and services. The additional features include the ability to skip commercials, to pause live television programs and input their own viewing preferences.

Essentially it is a device that allows the user to move to another program more efficiently. The system is able to remember the consumerЎ¦s favourite programs and record those programs. Overall, TiVo offers consumers independence because their own day-to-day schedule will no longer be dependent on the television networks and each household will be in control of their own television entertainment. Therefore TiVoЎ¦s concept is innovative and captures a market need.

What Factors Facilitate its Adoption (Strengths)?

There are a number of factors that facilitate the adoption of TiVo:

Alternative to VCR ЎV TiVo allows consumers to record over 30 hours of television without the need to use video tapes, this means there are benefits in terms of cost savings from buying additional tapes as well as using storage space for tapes

Tailored-made Viewing ЎV it offers independence to viewers since it allows them to watch what and when they want. The device also allow viewers to pause life television and attend to their needs like cooking, answering the telephone, going to the bathroom and other activities

Making TV Viewing Enjoyable ЎV 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

Functionality ЎV 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

What Factors Make Adoption Difficult (Weaknesses & Threats)?

First of all, TiVoЎ¦s set-top unit major functions such as pausing, replaying live television and flexible recording were not as easy to explain as they were to experience, it was therefore difficult to convince prospective customers, especially those who are technology shy. Also, the expensive start-up price of US$999 for a set-top box with 30-hour recording capacity was far too high, being more expensive than most television sets and over twice the price of good satellite dish.

One of the biggest challenges was for consumers to change 50 years of TV viewer habit overnight. This poses the biggest problem for TiVoЎ¦s marketing was trying to get people to change their habits. Also, improving television viewing was not on the top of most peopleЎ¦s priority list so the drive to embrace the new product was not high.

There was a lack of adequate awareness for the product because the company was not advertising and rather relied on the manufacturerЎ¦s representatives who could not give TiVo the amount of support that it required to increase its sales volume. Also, the media who were suppose to help create awareness for the product about the time of its launch, ended up writing review that created confusion and uncertainty