Tivo Case Study Solution

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TiVo has difficulties to cross the technology innovation lifecycle chasm between early adopters and early majority. This is evidenced by TiVo's market penetration level of 0.04%. In order to convince the early majority TiVo has to do 2 things: 1) secure a market leadership position because the pragmatists prefer to buy from the market leader, and 2) properly position, advertise and price TiVo for the target segments. In order to target the most appropriate segment, a 3C (Customers, Competitors, Company) analysis is required.
Customer analysis shows that between 1995 and 1999 the time spent in front of the TV became more and more important for Americans as an average household owned 2.4 TV sets, spend 7.4 hours a day watching TV, and intensified its experience purchasing larger TV and advanced audio systems. Important to note that an estimated 68% of Americans complained that they felt "widowed" by their loved one during the fall television season because popular shows running between 8pm to 11pm kept their spouse attached to the television. Moreover, when parents had difficulties to get their children to do homework, they used the TV as reward for completed tasks. Therefore, it is clear that consumers would like to have greater control on TV programming and on their TV habits.
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To do so, it should be positioned as iXDR (interactive eXclusive Digital Recorder), which is a new product category, identified as “all in one solution” for PVR, DVR, VCR, PDR, IVR and on-demand TV. TiVo has already all the functionality these other products have and should be positioned and promoted as “the fully comprehensive solution” to exclusively enhance the TV entertaining experience. The idea is to position TiVo on top of all other products available in the market, not only positioning TiVo itself but also a new product segment that collects all the features of all the other product

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