Tivo Case
STRATEGIC INFLECTION: TiVo in 2003
TiVo and Digital Video Recorder (DVR) Industry
Since the first time of the new DVR (Digital Video Recorder) industry, TiVo was clearly the leader in this new field. The first commercial broadcast quality video recorder was released Betamax video system by Sony in 1975. Two years later, JVC released the competing standard VHS (Video Home System). JVC formed early alliances with Matshushita Electric which had a large global distribution network. As a result VHS took off and by 1993 Sony was forced to discontinue production of video recorders with Betamax technology.
In 1997, TiVo introduce the first DVR models in the US market. TiVo device serves a function similar to a VCR (Video Cassette Recorder), …show more content…
TiVo also have bigger challenges with regard technology platform that TiVo could not be easily adapted to different hardware and software environment. TiVo operated in a complex ecosystem, which required the company to manage a wide array of potential competitors, partners and complementors. The battle between TV Cable and TV Satellite had important implications for TiVo. The TV Cable operators and the TV Satellite company were both potential DVR customers and potential DVR …show more content…
That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end. Strategic inflection points can be caused by technological change and competitors. A strategic inflection point can be deadly when unattended to. Companies that begin a decline as a result of its changes rarely recover their previous greatness. But strategic inflection points do not always lead to disaster. When the way business is being conducted changes, it creates opportunities for players who are adept at operating in the new way.
TiVo Strategy on the DVR Industry
TiVo understood well that consumers were still confused about what the TiVo product could and could not do, but once consumers subscribed to TiVo, they seemed to believe the service was worth continuing. TiVo ¡§churn rate¡¨ (the rate at which customers gave up their subscriptions) was low, approximately 10% per year.
1. Strategy Through Uniqueness
TiVo made sure that the First Version of their product was fully loaded with all the innovative additional features that maximized the viewer¡¦s experience. A feature that distinguishes TiVo devices from similar digital video recorders is the sophisticated software written by TiVo, other feature the user is likely to be interested in, user interface and it was very easy to
TiVo and Digital Video Recorder (DVR) Industry
Since the first time of the new DVR (Digital Video Recorder) industry, TiVo was clearly the leader in this new field. The first commercial broadcast quality video recorder was released Betamax video system by Sony in 1975. Two years later, JVC released the competing standard VHS (Video Home System). JVC formed early alliances with Matshushita Electric which had a large global distribution network. As a result VHS took off and by 1993 Sony was forced to discontinue production of video recorders with Betamax technology.
In 1997, TiVo introduce the first DVR models in the US market. TiVo device serves a function similar to a VCR (Video Cassette Recorder), …show more content…
TiVo also have bigger challenges with regard technology platform that TiVo could not be easily adapted to different hardware and software environment. TiVo operated in a complex ecosystem, which required the company to manage a wide array of potential competitors, partners and complementors. The battle between TV Cable and TV Satellite had important implications for TiVo. The TV Cable operators and the TV Satellite company were both potential DVR customers and potential DVR …show more content…
That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end. Strategic inflection points can be caused by technological change and competitors. A strategic inflection point can be deadly when unattended to. Companies that begin a decline as a result of its changes rarely recover their previous greatness. But strategic inflection points do not always lead to disaster. When the way business is being conducted changes, it creates opportunities for players who are adept at operating in the new way.
TiVo Strategy on the DVR Industry
TiVo understood well that consumers were still confused about what the TiVo product could and could not do, but once consumers subscribed to TiVo, they seemed to believe the service was worth continuing. TiVo ¡§churn rate¡¨ (the rate at which customers gave up their subscriptions) was low, approximately 10% per year.
1. Strategy Through Uniqueness
TiVo made sure that the First Version of their product was fully loaded with all the innovative additional features that maximized the viewer¡¦s experience. A feature that distinguishes TiVo devices from similar digital video recorders is the sophisticated software written by TiVo, other feature the user is likely to be interested in, user interface and it was very easy to