The TiVo Case Study

Main Problems

Although TiVo has been able to secure a loyal customer base subscribers, it is faced with some significant problems. TiVo’s customer base is reflective of less than one percent of homes in the US with TVs. There is thus the challenge of progressing from a small customer loyalty base to a mass market, which is crucial for TiVo’s survival as a viable business. This challenge is made quite steep considering other formidable competitors like satellite and cable TV providers, ReplayTV, and UltimateTV that are operating in the market place. Despite the significant reduction in the price of the TiVo set from the first models that sold at $1000, to current price of between $246 and $399, it is still above $199 and is thus considered pricey.

Solutions

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• For TiVo to make significant inroads in to the mass market, it needs to forge partnerships with big players in the media like AOL and NBC who have the leverage and who can afford to give the TiVo sets to subscribers at a discount.
• TiVo prides itself as an easy-to-use technology but in order to penetrate the market and stay competitive, it must be able to offer cutting edge technological innovations that sets it above the competition.
• cTiVo needs to diversify its selling strategies to include some discounts or rewards for existing customers who introduce new customers to TiVo.

Aristotle’s Ethos, Pathos, and Logos

In persuasive communication Aristotle posited that three things are key – credibility (ethos), emotion (pathos), and logic (logos). Advertising mediums like billboards use a lot of catchy embellishments and thus focus more on the pathos in communication.

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