TiVo, a digital video recorder (DVR) enables subscribers to record programs without video tapes or DVDs, allowing them to watch what they want, when they want to watch it. Despite of possessing benefits of being the first one to come up with this impressing innovation and having a fairly high customer satisfaction rate, sales are still very disappointing at the time of fourteen months into the launch. In order to expand customer demand, the company attempts to combine aggressive pricing, sales support from partnerships, product bundling, and a catchy communications campaign. Facing big competitors in a new, rapidly evolving technology market, TiVo needs to position itself as a strong brand through strategic segmentation and brand differentiation. Market analysis
As DVR culture is thriving, this radically new product market is fast growing and fast changing. It is important to note that the social trends are changing to favour personalized products and services. TiVo¡¯s ¡°home network¡± with personalized program schedules is a perfect match for this trend and therefore it has a great potential to expand on diverse customer base. However, TV industry in general is confronting social issues from negative image of TV viewing as creating an addictive dependence and less communication between family members. This trend makes it difficult for TiVo to penetrate the market with the product and services that will attract more people to sit in front of TV set. Company Analysis (Exhibit 1)
TiVo¡¯s brand image is fairly strong even compared to other major competitors. On the other hand, there are a number of weaknesses the company possesses. As the first one to enter (create) the DVR market, this new company has limited experience in development of the products and services to provide various levels of support that customers require. The company relies on third parties such as DirecTV for big portion of their customer support functions with bundling services. The...
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