Tivo Analysis

Atawanna L. Royal

February 6, 2008

Marketing Management

Strategic Inflection: TiVo in 2005

SWOT Analysis:

Strengths

• Partnerships with large established players

• Multiple potential revenue streams

• Brand recognition and loyal customer strength

• Big investors Weaknesses

• Separation from partners

• Dependency on only a few suppliers

Opportunities

• Innovative ideas

• International Market

• Rapidly growing market Threats

• Competition and possible substitutes

• Manufacturing partners

• Dependency on major retail partners for distribution

• Legal Challenges

Strengths

One of TiVo’s biggest strengths is its partnerships with large established players. Sony, Toshiba, Pioneer, and Direct TV are a few of the players that have been partnered with TiVo. Direct TV provided perhaps the best opportunity of all the other players. Partnering with Direct TV, the largest U.S. satellite TV operator, provided consumers with an integrated Direct TV/DVR set-top box. Another one of TiVo’s strength is their multiple potential revenue streams. TiVo has built great differentiation in its product. TiVo provides DVR technology and services to its customers. TiVo also launched a second-generation product, TiVo Series2, which offered new services such as digital music, digital, pictures, and VOD, video on demand. Brand recognition and customer loyalty is another major strength of TiVo. Being one of the first to lead the charge in the DVR arena has established the strong brand recognition for TiVo. This also provides opportunity for TiVo to launch new products and have them accepted more easily by their customers. Accompanying these strengths of TiVo is the giants that invest in it. Some of the giants include AOL, Disney, Showtime, Encore, NBC, CBS, Comcast, and Sony. These giants bring to TiVo their experience and intelligence. They also provide their quality brand recognition to TiVo, making these relationships a major strength for

the company.

Weaknesses

Though TiVo’s partnerships is its biggest strength, it is also one of their biggest weaknesses. Direct TV, one of TiVo’s major partners, is ending the partnership. Direct TV provides over half of TiVo’s subscribers. TiVo stands to loose half its revenue as a result of the separation. Depending on only a few suppliers is also a major weakness for TiVo. This