TiVo Case Analysis: Highs and Lows Essay

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TiVo Case Analysis
Since day one TiVo has been the leader in the DVR (digital video recorder) industry with their first mover advantage, allowing their customers to record and play back their favorite television programs using their recorder along with a subscription service. Like any successful firm, TiVo has had its share of highs and lows. In 2007, with their CEO Tom Rogers, TiVo had found itself recovering from an all time low in 2005, where the company suffered from mass losses, low stock prices, and the end of an important partnership with DirecTV.
TiVo was now headed down the right path, once again being first movers by differentiating their product and services around new “macro trends” into a viewing and advertising solution …show more content…

TiVo needs to also concentrate heavily on their Audience Research and Measurement (ARM) unit, where they collect large amounts of data based on viewers’ ad-skipping behavior and ratings which are very valuable to advertisers and TV networks. Using their already gained scale through their mass distribution channels as a window for these two areas will allow TiVo to increase the low profits that are earned from distribution customers and remain steady while taking on all their other new business models.
TiVo’s constant challenge of increasing stand-alone customers can and should be tackled by investing more money in marketing. In 2006 the effort of $43 million on marketing to sell stand-alone units through their website more than doubled online sales. If one of TiVo’s executive’s suggestion of spending $100 million on marketing is implemented, TiVo could see similar results in the near future.
TiVo has remained an industry leader and been able get back up on their feet even after tough times in 2005 because of their great core competencies. Rogers had a vision to differentiate TiVo’s product and services to something far more than just your average DVR; he understood that TiVo needed to come up with a strategic environment. TiVo had already been number one and had the most brand recognition and customer loyalty in the industry, but Rogers changed TiVo’s internal strengths to coincide with its always changing external environment. As

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