Essay about Tivo Case Study
1. Draw a supply chain (or value net) that traces the various stakeholders involved in the TiVo value chain and their respective interactions. From this, what insights do you get about the relative value that each stakeholder adds in this process?
TiVo struggles with finding ways to decrease the overall cost of customer acquisition. Costly components and services to assist customers with set-up combined with marketing costs to educate potential customers on the value and benefits of their products leads TiVo to finding ways to increase revenue while decreasing costs. One way TiVo has found to address this while also working with stakeholders is to provide a new kind of advertising to partners so as to not only offer …show more content…
4. To what extent is the TiVo business model affected by network externalities? What are the implications for its business model?
The company is experiencing firsthand the brutal realities of introducing a disruptive technology into a marketplace filled with obstacles, (Fast Company, 2002)” TiVo’s struggles have been in large part because of network externalities. Broadcasters and advertisers having been unwilling to support because of concerns of loss of advertising revenue and market reach. However, TiVo found ways to incorporate it into its business models and sees the future as dependent upon its business partnerships and ability to adapt to the concerns of its network and meet their demand. “TiVo's success does not hinge on TiVo selling a lot of its own boxes but on cultivating a community of consumer-electronics makers and cable and satellite providers who want "TiVo inside" their boxes too, (Fast Company, 2002).
As TiVo continues the television revolution, there will be more opportunities within the network. “Ultimately, TiVo's intrinsic value is inspirational, not financial. With only 304 employees, pipsqueak TiVo somehow continues to disrupt one institution after another. No other