Tivo Case Analysis

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1.1 What are the key elements of Tivo’s business strategy? Through partnerships with some of the networks (NBC, CBS), and collaboration with Phillips and Sony, Tivo will deliver a better TV-watching experience to consumers. In addition, Tivo offered advertisers a way to target certain demographics more effectively using Tivo’s ability to track the watching preferences/habits of its users. Tivo’s strategy was a revolutionary concept for “couch commerce,” a growing niche of consumers that Tivo felt was underserved. 1.2 Are they pursuing a complex-systems or a volume-operations model? Tivo is pursuing a Volume-operations Model. • Tivo has a large number of customers it targets (TV-watchers are the primary customers). Each transaction it makes (by selling its box or its service) is relatively small. It is by volume of these relatively small transactions that Tivo will make money. • When it comes to research, Tivo does not, and in fact could not, delve deeply into the mindset, needs, and wants of each of its TV viewers. Instead it relies on trends, statistics, and broader-based research tools to understand its customers. • In terms of marketing, Tivo’s approach was branding and promotion, not forming direct relationships with each of its customers as Complex Systems Model companies do. 1.3 How does Tivo intend to create competitive advantage? Tivo’s competitive advantage came simply from being the innovators of this product, the first ones present in this market. As a result, Tivo achieved excellent brand recognition, an essential component of competitive advantage; people still refer to digitally recording TV shows as “Tivo’ing.” By establishing exclusive partnerships with key players in the industries most relevant to Tivo’s product (NBC, CBS, Phillips, Sony, and DirectTV), Tivo was able to create entrance barriers for its competition;

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