Tivo Case

1. Analyze the situation from the customer's standpoint. What is TiVo? What factors facilitate adoption?

Solution: From the customer's standpoint, when a new innovation come out, they always don't to be the first to have a try. They would like to wait in order to obtain more information or experience from the others consumers who use it. If they can ensure it is convenient or useful from the information, they will make a decision to accept it. So companies who want to launch a new product should focus on this. What is TiVo? TiVo is a digital video recorder, which offers consumers the choice of when, and what to watch through TiVo box and service. And it can skip the commercial ads, pause live programs and input their own view preferences. What factors facilitate adoption? TiVo allows consumers record over 30 hours of television without using videotapes. It benefits for the consumers about not only for the savings from buying the videotapes, but also there is not degradation because of the video is saved at the hard disk. The video can be watched whenever consumers are convenient to watch. Consumers can pause it, record it. Consumers always want to skip the ads when they are watching an interesting movie, TiVo succeed in skipping commercial ads.

2. What is the impact of TiVo on the networks? Advertisers? Cable/satellite

operators?

Solution: TiVo competes against the Networks. Because they offer the service that can be skip the ads that have a bad effect for the traditional Network company. Because they reply on ads to make money. But it's also an opportunity for Network. Because with TiVo they could adjust their launch strategy as they monitored the behavioral response to their campaign. Though it seems that TiVo decrease the opportunity that people watch ads. But always when people watch the ads they don't like, they will switch channel. But TiVo gives them an opportunity that they can make their ads more efficiency by specifically targeting different consumers with their preference. They even can predict the consumers by using the data TiVo collected. By TiVo consumers' feedback, Cable/Satellite companies can make their service more appealing to TV lovers and, of course, help them better program their shows.

3. How would you characterize TiVo's action plans at the end