TiVo is a highly differentiated digital video recorder, but despite gaining the first mover advantage the company has struggled as competition has increased. This 14 page paper examines a case study provided by the student, looking at the company including the internal and external environment, core competences, strategic planning, segmentation, competitive strategies, marketing mix, value framework and potential future strategies. The bibliography cites 11 sources.
Name of Research Paper File: TS14_TEtivo01.rtf
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1. Internal Situation TiVo is a manufacturer of digital video recorder (DVR) that can pause and record television programmes as well as
offer a range of additional services that empower the users, such as video on demand and automated scheduling. The TiVo box had been on the market, TiVo were feeling pressure
from the competition and had decision to make regarding the future of the company. The company had the first mover advantage and a great deal of loyalty from the existing
customers. The revues from services were increasing with customers, once subscribed to the premium services were not only costumers they were advocates. The churn rate for the subscribers to serves
costing $12.99 was less than 1% per month and less than 10% per annum. However, there was difficulty in determining how many users of basic services would upgrade. The strategy,
as well as selling the boxes with a choice of either a monthly fee or a one off life time fee, has also been distributed for sale as a basic
model where there is no monthly fee but the services are limited but allowing a free 45 day trial of the additional features. The company has found that the take
up rate was good and once the subscriber made a commitment they would be a long term customer. However, it was difficult to assess the take up rate after the
free trial. The company has a good research and development team, as the technology has grown and more external competitors have arisen, the development of new technologies took place
and there is the potential for increased expansion of the product with the use for new innovation. The strategic alliance with DirecTV resulted in the development of an integrated satellite
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