Tivo

1. Analyse the situation from the consumer's standpoint. What is TiVo®? What factors facilitate the adoption? What factors make adoption difficult? Who is TiVo best suited for?

Introduction

From a consumerÐŽ¦s standpoint, the introduction of new innovation in technology might create confusion and uncertainty to them. In many instances consumers may adopt an expectative approach of ÐŽ§wait and seeЎЁ in order to obtain more information and reaction from the market prior to making a decision to purchase that particular product. It is imperative that companies must be aware of this so that it focuses its resources and efforts to ensure that the new products launched is successful.

What Is TiVo?

In essence, TiVo is a digital video recorder which enables a person or a group of persons in a household to create their own personal television schedule by using the regular television programs. It offers consumers the choice of when and what to watch through TiVoÐŽ¦s box and services. The additional features include the ability to skip commercials, to pause live television programs and input their own viewing preferences.

Essentially it is a device that allows the user to move to another program more efficiently. The system is able to remember the consumerÐŽ¦s favourite programs and record those programs. Overall, TiVo offers consumers independence because their own day-to-day schedule will no longer be dependent on the television networks and each household will be in control of their own television entertainment. Therefore TiVoÐŽ¦s concept is innovative and captures a market need.

What Factors Facilitate its Adoption (Strengths)?

There are a number of factors that facilitate the adoption of TiVo:

Alternative to VCR ÐŽV TiVo allows consumers to record over 30 hours of television without the need to use video tapes, this means there are benefits in terms of cost savings from buying additional tapes as well as using storage space for tapes

Tailored-made Viewing ÐŽV it offers independence to viewers since it allows them to watch what and when they want. The device also allow viewers to pause life television and attend to their needs like cooking, answering the telephone, going to the bathroom and other activities

Making TV Viewing Enjoyable ÐŽV the fact that everyone who owned TiVo seemed satisfied with it and 72% of the owners claimed that TiVo had made TV viewing a lot more enjoyable

Functionality ÐŽV better recording quality from its digital technology, easy-to-use features for setting up the recording as well as the capability to skip commercials fast

What Factors Make Adoption Difficult (Weaknesses & Threats)?

First of all, TiVoÐŽ¦s set-top unit major functions such as pausing, replaying live television and flexible recording were not as easy to explain as they were to experience, it was therefore difficult to convince prospective customers, especially those who are technology shy. Also, the expensive start-up price of US$999 for a set-top box with 30-hour recording capacity was far too high, being more expensive than most television sets and over twice the price of good satellite dish.

One of the biggest challenges was for consumers to change 50 years of TV viewer habit overnight. This poses the biggest problem for TiVoÐŽ¦s marketing was trying to get people to change their habits. Also, improving television viewing was not on the top of most peopleÐŽ¦s priority list so the drive to embrace the new product was not high.

There was a lack of adequate awareness for the product because the company was not advertising and rather relied on the manufacturerÐŽ¦s representatives who could not give TiVo the amount of support that it required to increase its sales volume. Also, the media who were suppose to help create awareness for the product about the time of its launch, ended up writing review that created confusion and uncertainty in the minds of would be consumers.

The early adopters were not doing a good job of enlightening others of the benefits for TiVo despite the fact that they were very satisfied with it. And the fact that TiVo was new in its category with no reference points would discourage or delay consumers making their purchase decision.

Who Is Tyco Best Suited For (Opportunities)?

TiVo is best suited for people who have special television programs that they may be missing because they are unavailable to watch at the time these programs are aired by the television networks and families whose members have different viewing preferences. For these households, TiVo helps reduce conflicts relating to what program is watched at a particular time and for other people it changes their daily routine because they are no longer under pressure to watch their favourite programs at the time when the networks air them, they can now watch these shows whenever they like.

2. Now adopt the standpoint of the networks, the advertisers, and the cable/satellite companies: what do they want TiVo to be? Thinking about the competition: What are Microsoft's potential strengths and weaknesses in this market?

The Television Networks

The television networks want TiVo to serve as a system that would complement their business rather than compete against or jeopardize it. They want TiVo to serve as a system on which they can leverage to conduct more targeted advertising and be able to market advertising slots more effectively, they also want TiVo to be an avenue through which they can monitor the viewer rates of their programs and therefore put more strategic plans in place to increase market share and gain competitive advantage.

The Advertisers

The advertisers want TiVo to be a device with which they can conduct more personalized and targeted advertising. They also want to be able to use TiVoÐŽ¦s technology to monitor consumer preference trend analysis pertaining to different types of adverts in order for them to know which adverts to continues and which to discontinue.

The Cable / Satellite Companies

The cable/satellite companies want TiVo to complement their services and assist them to gain greater market share because they can combine their variety of channels with the independence that TiVo offers to come up with a product that is even more appealing to consumers.

MicrosoftÐŽ¦s Potential Strengths and Weaknesses

MicrosoftÐŽ¦s