Tivo

Q1. TiVo’s SWOT Analysis

Strengths

 Pioneer in the product category

 Friendly yet all comprising name: TiVo (TV Your Way)

 Easy to use and equipped with numerous innovative features

• Pausing and replaying live TV

• Recording without DVD, VCD or video cassettes

• Electronic Program Guide (EPG)

• “Thumbs up” and “thumbs down” buttons for rating user’s favorite shows

• The season pass feature

• Fast forwarding feature, upto 60 times the normal speed

• Suggesting users, the shows they would want to watch

• Downloadable feature upgrades and update of programming schedules

 Nationally available through electronic chains like Best Buy

 High level of customer satisfaction

 Two different models and three service packages available to attract different consumer markets

 The new pricing strategy lowering the price from $999 to $399

Weaknesses

 Expensive product with additional service fee

 First in this category, so lack of category awareness

 Ineffective communication with its consumers

 Functions were difficult and confusing to explain to customers

 Restricted promotional activities to public relations, animating its website, and a very limited mass media campaign

 Lack of brand awareness

 Inadequate training for sales people

 Not enough support from the manufacturers’ representatives for extensive explanations and an in-store demonstration

Opportunities

 An ever expanding target market of 102 million TV watching households

 300% increase in number of families opting for luxurious electronics

 Effective demonstrations given by users to their friends and relatives

 Partnership with Sony and Phillips for product reliability and effective distribution

 Partnership with network leaders like CBS and NBC

 Working with P&G and GM on defining advertising formulae of the future

Threats

 Television