TiVo is a digital video recorder
TiVo is a digital video recorder (DVR) produced and developed by TiVo Inc. which was a pioneer in the DVR industry. It enables its consumers to watch what they want, at their convenience by enabling them to record, pause, rewind and skip advertisements when watching TV. When connected to a home network, it allows downloads, online scheduling, photo viewing and music offerings
In order to expand their market, they partnered with existing companies such as Sony, Philips, Hughes, Pioneer, Toshiba, and Humax. Combining with the already established companies helped with their interaction with potential consumers. Apart from the partnerships there also had a catchy communications phrase to help build awareness of the brand and penetrate the market. TiVo also gained a number of subscribers after a number of celebrities swore by their product and services.
For TiVo to stay in the market, they had to adapt to the ever-changing consumer needs and therefore they have been evolving since they started. They are ever introducing even better versions of their products in order to attract new consumers and to keep the existing subscribers. TiVo developed a good brand image compared to other major competitor but they still face some challenges. As one of the pioneers of their products and services, they did not have a lot of experience in development of the products and services to provide various levels of support that customers require.
The DVR technology and the industry that has grown over the years. Its market is at the intersection point of three already established products that is the PC software and hardware, broadcast and TV and electronic consumer products. The environmental stability started out low due to rapid technological change, the price range of competition relatively high but it has been growing and improving over the years.
UNIQUE PHILOSOPHIES IN THE CASE
1. Restructuring: In mid-2005, Mike Ramsay, the CEO of TiVo Inc. who was also one of the founders, resigned and a new CEO was appointed. The new CEO appointed was the former president of NBC cable, Tom Rogers, which meant that he had relevant experience in the industry. The decision to hire the new CEO was based on the fact that the previous CEO, would rarely be in the office. This was because he was traveling all the time trying to meet and talk to companies that would help TiVo build more software and gain subscribers.
As a result of his constant absence, there were a few mistakes. One of the mistakes caused the company to have staff layoffs in early 2001 and late 2001. The change in management became a new strength to the company.
2. Home replication strategy: TiVo Inc. was developed in the United States and therefore it claimed to cover the entire US market. TiVo market was centralized in the US before expanding to other countries. The brand has very strong customer loyalty in the United States is its area of origin. After establishing the market in the US, TiVo’s technology was modified to fit in other countries before finally expanding to other countries such as Australia, New Zealand, Netherlands and South Africa.