TiVo: Changing the Face of Television SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TiVo: Changing the Face of Television
A year into the launch of TiVo--the "revolutionary new personal TV service that lets you watch what you want, when you want"--John Tebona, VP of business development, was faced with important decisions about TiVo's revenue model and strategic alliances. With television's move from a network-based model to an interactive one, he had to decide what role TiVo would play in the emerging industry landscape. Would TiVo be just a set-top box or would it live up to the vision of revolutionizing the television viewing experience? What revenue streams should it emphasize to capture the most value? What strategic relationships must TiVo form in an environment where companies were cross-investing in multiple technologies across different industry segments? How could it expand its customer base and accelerate its revenues before competitors like Microsoft's WebTV became the default standard?
Authors :: Mohanbir Sawhney, Sean Alexis, Zack Gund, Lee Jacobek
Swot Analysis of "TiVo: Changing the Face of Television" written by Mohanbir Sawhney, Sean Alexis, Zack Gund, Lee Jacobek includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tivo Tebona facing as an external strategic factors. Some of the topics covered in TiVo: Changing the Face of Television case study are - Strategic Management Strategies, Joint ventures, Marketing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the TiVo: Changing the Face of Television casestudy better are - – increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices,
customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of TiVo: Changing the Face of Television
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TiVo: Changing the Face of Television case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tivo Tebona, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tivo Tebona operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of TiVo: Changing the Face of Television can be done for the following purposes –
1. Strategic planning using facts provided in TiVo: Changing the Face of Television case study
2. Improving business portfolio management of Tivo Tebona
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tivo Tebona
Strengths TiVo: Changing the Face of Television | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tivo Tebona in TiVo: Changing the Face of Television Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Tivo Tebona in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Tivo Tebona is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Mohanbir Sawhney, Sean Alexis, Zack Gund, Lee Jacobek can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Low bargaining power of suppliers
– Suppliers of Tivo Tebona in the sector have low bargaining power. TiVo: Changing the Face of Television has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tivo Tebona to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Tivo Tebona is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Tivo Tebona is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in TiVo: Changing the Face of Television Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Tivo Tebona is present in almost all the verticals within the industry. This has provided firm in TiVo: Changing the Face of Television case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Sustainable margins compare to other players in Strategy & Execution industry
– TiVo: Changing the Face of Television firm has clearly differentiated products in the market place. This has enabled Tivo Tebona to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Tivo Tebona to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Tivo Tebona has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study TiVo: Changing the Face of Television - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Tivo Tebona
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tivo Tebona does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Tivo Tebona is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Tivo Tebona in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Tivo Tebona is one of the most innovative firm in sector. Manager in TiVo: Changing the Face of Television Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Tivo Tebona has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tivo Tebona has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Tivo Tebona digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tivo Tebona has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses TiVo: Changing the Face of Television | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TiVo: Changing the Face of Television are -
Slow decision making process
– As mentioned earlier in the report, Tivo Tebona has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Tivo Tebona even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Interest costs
– Compare to the competition, Tivo Tebona has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Tivo Tebona has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - TiVo: Changing the Face of Television should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Tivo Tebona is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Tivo Tebona needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tivo Tebona to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study TiVo: Changing the Face of Television that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case TiVo: Changing the Face of Television can leverage the sales team experience to cultivate customer relationships as Tivo Tebona is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As TiVo: Changing the Face of Television HBR case study mentions - Tivo Tebona takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Need for greater diversity
– Tivo Tebona has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Workers concerns about automation
– As automation is fast increasing in the segment, Tivo Tebona needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study TiVo: Changing the Face of Television, it seems that the employees of Tivo Tebona don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study TiVo: Changing the Face of Television, in the dynamic environment Tivo Tebona has struggled to respond to the nimble upstart competition. Tivo Tebona has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Tivo Tebona has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities TiVo: Changing the Face of Television | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study TiVo: Changing the Face of Television are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tivo Tebona can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Tivo Tebona can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tivo Tebona can use these opportunities to build new business models that can help the communities that Tivo Tebona operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tivo Tebona can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, TiVo: Changing the Face of Television, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Tivo Tebona has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study TiVo: Changing the Face of Television - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tivo Tebona to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Tivo Tebona can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tivo Tebona can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tivo Tebona is facing challenges because of the dominance of functional experts in the organization. TiVo: Changing the Face of Television case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tivo Tebona in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Tivo Tebona can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Tivo Tebona in the consumer business. Now Tivo Tebona can target international markets with far fewer capital restrictions requirements than the existing system.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Tivo Tebona to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Developing new processes and practices
– Tivo Tebona can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Tivo Tebona has opened avenues for new revenue streams for the organization in the industry. This can help Tivo Tebona to build a more holistic ecosystem as suggested in the TiVo: Changing the Face of Television case study. Tivo Tebona can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats TiVo: Changing the Face of Television External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TiVo: Changing the Face of Television are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Tivo Tebona in the Strategy & Execution sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TiVo: Changing the Face of Television, Tivo Tebona may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Tivo Tebona
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Tivo Tebona.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Tivo Tebona needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Regulatory challenges
– Tivo Tebona needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tivo Tebona can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study TiVo: Changing the Face of Television .
High dependence on third party suppliers
– Tivo Tebona high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Tivo Tebona is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Tivo Tebona business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tivo Tebona with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Tivo Tebona.
Weighted SWOT Analysis of TiVo: Changing the Face of Television Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study TiVo: Changing the Face of Television needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study TiVo: Changing the Face of Television is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study TiVo: Changing the Face of Television is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of TiVo: Changing the Face of Television is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Tivo Tebona needs to make to build a sustainable competitive advantage.
