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Is Ti Vo Inc. And Its Struggle To Find Success In The Market

1287 words - 5 pages

In this case study we will gain a better understanding of TiVo, Inc. and how it has struggled to find success in a market they are known to be the innovator. At this point there are very few television viewers in North American that do not know what TiVo does for TV viewing. However, most consumers do not know the history or struggles this company has been through since creating the product in the late 1990’s. After reading this case study it is clear the creators of the TiVo were visionaries but it is also clear they were not business people too. Sadly, this might be the eventual demise of the company that clearly had the market in the palm of their hand. We will examine some of their flaws and how TiVo might regain some of the momentum to become a profitable organization.
TiVo has had competitors for the first year that it was conceived which has made it difficult to thrive when fighting for market share. The two major competitors were DVR, and ReplayTV. All made their debut in 1999 and the Consumer Electronics Show in Las Vegas. Replay won the Best of Show award. (Pearce & Robinson, 2013) However years later no one remembers ReplayTV. Whereas TiVo and DVR has gone on to become household names in the market place. However in the early years of this technology TiVo thrive. Using clever marketing slogans such as, “It’s not TiVo unless it’s a TiVo”, “Simple enough you mother could do it, or “Hey if you like us, TiVo us.” Additionally, TiVo engaged in employing celebrities to endorse the TiVo brand. These are all time tested marketing strategies that work to help corporations dominate a market share and drive them to financial success. So why has TiVo dominated the market early but never turned a profit.
There is little dispute that early on the main marketing strategy for TiVo was effective. However, there was never an emotional connection made to the product. Yes, it changed the way TV is viewed which was a missed opportunity to make that connection. Instead in the case study CEO and creator Mike Ramsey mentioned that consumers are intimidated by new electronic technology introduced in the market. I do not believe that Mr Ramsey never attempted to address those fear. In today’s market place DVR have become the household name TiVo once was and the Digital Video Recording device market is saturated with new products. The modern day consumer is more family with advertising campaigns such as The Hopper (Dish Network) and the Genie (Direct TV) which can do the same functions as a TiVo device. However, the former is included in to cost of your Satellite TV subscription.
Where did TiVo miss the mark? While the company was attempting to grow itself it lost sight of the bigger picture. TiVo was embedding them in their competitor’s equipment, only in true these were not competitors. They were installing equipment in the companies that controlled the market share already and TiVo’s ownership was creating deals with companies...

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