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Ivo Has Not Yet Sustained a Competitive Advantage in the Industry.

In: Business and Management

Submitted By LyfenSun
Words 2564
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TiVo
A case study analysis

Group 5 Suthasina Chaolertseree (4802641060) Nutnaree Chaisirivichien (4802640583) Passamon Rattanawenawatee (4802641326) Jirawat Mahatraiphop (4802640302) David Eberle (5102940037)

TiVo: A case study analysis MK 413: Group 5

1. Management vision There are four directions that TiVo’s management team can choose; each strategy has issues that the management team should consider before making a decision. The first direction is doing stand-alone business. TiVo can successfully compete with others in this type of business and earn high profits due to its unique offering. Standalone business also gives TiVo flexibility in developing its product technology and in enhancing its brand awareness, which allows TiVo to set higher prices. On the other hand, the company will have more marketing expenses in order to compete in the market since it needs to pay for advertising costs itself. Moreover, cable companies can become new potential competitors since they can outsource consumer electronics manufacturing to produce DVRs for them and distribute DVR devices to their subscribers. Doing Comcast and Advertising business may require TiVo to assemble its product equipment with another consumer electronics product and to use co-branding causing TiVo’s brand awareness to decrease. Moreover, the management team needs to put huge effort in turning advertising-related business into one of its core businesses. Furthermore, TiVo’s monthly average revenue per unit or per subscriber (ARPU) from the customer base of cable network providers has dramatically decreased, turning the profit margin from this base to be very low. In contrast, customers who use TiVo have a low churn rate, so the company can use this competitiveness to attract cable companies to adopt and distribute TiVo products to their subscribers to help protect their subscribers from switching…...

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