Tivo Case Study

As it launched in 1999, perhaps America wasn’t ready for the PVR (personal video recorder), or perhaps people were simply not aware of what had been created. Whatever the case may have been, the company named TiVo needed the success it had been lacking and the recognition it deserved. It was a slow start and a journey of anxiety even the company was backed by massive companies such as AOL-Time Warner, DirecTV and NBC to name a few supporters. TiVo needed to figure out how to get the message across to consumers as to what phenomenal features it had to offer to families even if it meant suffering with slow growth.

Strengths:

- Best Buy was exclusive retailer of TiVo.

- DirecTV commitment to TiVo.

- Surveys that logged consumer perspectives.

- Support team of NBC, AOL-Time Warner, and the Discovery Networks.

- Results of surveys were positive from people.

- Surveys were continuous (bi-annual since 99)

- TiVo was able to offer something new and convenient for all.

- TiVo wanted to have a breakthrough so consumers would understand what is being offered to them and how useful it is.

- TiVo can be a stand alone unit or a receiver for satellite.

Weaknesses:

- Very slow growth rate.

- May have been marketed better with more outreach to potential consumers.

- Marketing team with right approach was needed.

- Weak cash flow

- Only 6,400 people received email for survey

- Customer base was extremely low.

- Costs and expenses weren’t low.

- Customers didn’t understand it.

Opportunities:

- give more incentives so people take surveys

- more mass emailing

- give more incentives if people buy TiVo

- Advertise

- Get across the idea of convenience that America loves to have.

- Once TiVo has enough customer bases, it can raise prices and raise revenue.

- Generate sales based on demographic research and results.

- Stick through the tough time and make it so America can see the beauty in what TiVo has to offer; suffer now, reap benefits later.

Threats:

- Another company can take the idea of TiVo and compete.

- Not universal

- Consumer lack of awareness or unwillingness to adapt.

- DirecTV may drop their commitment to TiVo.

Alternatives:

Alternative #1:

A new marketing strategy or new marketing team.

Pro: TiVo already has back up from major companies. All they need to do is implement it properly to reach millions of consumers and make them aware of what is available to them.

Pro: Although more money would be invested, there will be a high return rate once the idea is finally picked up by potential consumers and TiVo will be well on its way.

Pro: A new approach to advertising and marketing can be the key to gaining a strong customer base.

Con: More expenses and more risk of loss.

Con: Sales can continue to plummet.

Con: There may be no upside to TiVo.

Con: New marketing strategy may provoke the companies that support them to quit on them.

Alternative #2

Stick with it and continue to reach out to huge pool of potential customers.

Pro: Many companies can start off slow and then have a big boom in sales and revenue.

Pro: Opportunity to be a leader in an innovative product that offers benefits never