TiVo, Inc.: TiVo vs. Cable and Satellite DVR; Can TiVo Survive?
CASE ABSTRACT
For some people, TiVo is a very delicate addition to the entertainment sets at home, not just as a DVR, but as a product that feels a place of belonging in someone’s home where that someone could relate to and rave about what TiVo is and does on and on. For some others, however, the motivation and willingness is just not there.
TiVo started from a dream full of hopes, experiencing many rollercoaster adrenaline and milestones and now when HD TiVo was launched to the public, many people still find it troublesome in regards to the installation procedures, because the necessity of WiFi, an embedded technology of wireless local area networks that is developed for mobile devices and services. Nowadays that more and more public places as well as homes have their own speedy and wireless internet broadband and that by 2007, HD TV trend in particular is expected to reach 24 Million US households, will this change people’s perception of TiVo and help TiVo pick up its losses to be profitable in many years to come?
As for the box itself, with the $799 price tag, TiVo really competes as a high end product in the DVR industry. As the HD products such as, HDTV, HD DVD, Blu-Ray, as well as HD Audio products, becomes mainstream and decrease in prices, will there be actually enough people who choose to buy TiVo at a premium price that enables users to receive an independent box that they could keep, or would people rather choose the DVR offered by cable and satellite companies, aka. TiVo’s competitors?
KEY POINTS
1. To understand the business life cycle of a “TiVo-like” industries which are hi-tech companies, and the trends of the industry itself (Chapter 4: The External Environment).
2. To understand the typical paradigm of hi-tech products and companies, which typically operate with extreme demands fluctuations and competitive pressure (Chapter 4: The External Environment).
3. To describe how a technology company such as TiVo formulates it strategy in its basic business (Chapter 8: Business Strategy) and its related businesses (Chapter 9: Multibusiness Strategy).
DISCUSSION QUESTIONS
1. People might think that a company with a truly revolutionary product and deeply devoted customers wouldn't have to fret about mere survival, but TiVo does. Why?
2. Will TiVo become a great company with a big name in the future of hi-tech industry and further more become a pop culture or Will it go down in history with its one time fame?
3. What do you do when the product you pioneered is being sold better, and for less, by someone else?
4. a. What is the main marketing strategy for TiVo?
b. And is the strategy sufficient to bring glory or at least give the profitability for TiVo?
c. Finally, are changes needed in order for TiVo to perform better, in terms of marketing their product?