Tivo Analysis
Essay title: Tivo Analysis
Atawanna L. Royal
February 6, 2008
Marketing Management
Strategic Inflection: TiVo in 2005
SWOT Analysis:
Strengths
Partnerships with large established players
Multiple potential revenue streams
Brand recognition and loyal customer strength
Big investors
Weaknesses
Separation from partners
Dependency on only a few suppliers
Opportunities
Innovative ideas
International Market
Rapidly growing market
Threats
Competition and possible substitutes
Manufacturing partners
Dependency on major retail partners for distribution
Legal Challenges
Strengths
One of TiVo’s biggest strengths is its partnerships with large established players. Sony, Toshiba, Pioneer, and Direct TV are a few of the players that have been partnered with TiVo. Direct TV provided perhaps the best opportunity of all the other players. Partnering with Direct TV, the largest U.S. satellite TV operator, provided consumers with an integrated Direct TV/DVR set-top box. Another one of TiVo’s strength is their multiple potential revenue streams. TiVo has built great differentiation in its product. TiVo provides DVR technology and services to its customers. TiVo also launched a second-generation product, TiVo Series2, which offered new services such as digital music, digital, pictures, and VOD, video on demand. Brand recognition and customer loyalty is another major strength of TiVo. Being one of the first to lead the charge in the DVR arena has established the strong brand recognition for TiVo. This also provides opportunity for TiVo to launch new products and have them accepted more easily by their customers. Accompanying these strengths of TiVo is the giants that invest in it. Some of the giants include AOL, Disney, Showtime, Encore, NBC, CBS, Comcast, and Sony. These giants bring to TiVo their experience and intelligence. They also provide their quality brand recognition to TiVo, making these relationships a major strength for
the company.
Weaknesses
Though TiVo’s partnerships is its biggest strength, it is also one of their biggest weaknesses. Direct TV, one of TiVo’s major partners, is ending the partnership. Direct TV provides over half of TiVo’s subscribers. TiVo stands to loose half its revenue as a result of the separation. Depending on only a few suppliers is also a major weakness for TiVo. This