Tivo Foda

TiVo

Weakness & Opportunities

1. The number of subscribers is still lower than expectations, caused by few incentives such as promotions. The main cause is due to inappropriate communicationby using ineffective methods; the advertising budget should be focus in the most efficient channels as internet articles, TV ads, printed reviews and retail displays.

2. The actual strategicalliance with direct TV will not longer exist; the company must look forward to develop new strategic alliances with TV networks and cable companies to increase the required volume of sales.

3.There exist only one sale channel: an additional distribution should be developed, as it could be through direct sales and new costumers markets as hotels.

4. It has not been developed enoughawareness within single woman, low-educated buyers and low-income potential buyers, as well, it exist a high sales concentration in 26% from the total market, (New York, California, Georgia andMassachusetts); developing new markets in states where is located the 25% percent of the population (Texas, Florida, Illinois, Pennsylvania and Ohio) could increase sales speed.
Unused internationalpotential markets through partnerships could increase sales, especially in neighbor markets such as Mexico and Canada.

5. The companies’ only revenue stream is through the TiVo sales; potentialrevenue streams as data and advertisement of most watched programs could increase profitability. Negative cash flows due to a fix cost structure and high marketing and research and development expenses.Cash flow could be increase by:

a. Looking for more efficient advertising methods
b. Not using TV as an advertising channel
c. Outsourcing the R&D expenditures
d.Developing an integrated marketing campaign to reduce the marketing expenses respecting related parties.
e. The most important driver must be sales incensement to $47k in order to be in...