Keep it short and simple, but make sure you cover the important points – establish the need for the product/service, recommend the solution that your product/service will roved and explain the value of it. 2. 0 Situation Analysis Tivoli is a video recording device that allows users to record and manipulate live television. The product comes as a black box that connects to the consumer’s television set and permits a predetermined amount of recording time depending on the memory of the box. As it stands now, Tivoli can not only be purchased as a standalone device, but also as an extension of the cable provider DIRECTS.
The biggest strength of Tivoli is the “wow’ factor that users get when they realize they have the capability to manipulate live television. Since the television set was created, no other device allowed users to take total control over their viewing experience. The ability to alter live television makes Tivoli revolutionary and as such, a very appealing technology to consumers. The greatest weakness of Tivoli is getting consumers acclimated with what the product is. Consumers are less likely to spend money on a device that they know very little about.
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The likelihood is even further declined when a consumer notices how expensive the price is. The opportunity for Tivoli to exploit the market of PR is endless. A price reduction ill definitely allow the company to gain more of the market. In addition to lowering prices, the company should also consider making the product synonymous with other devices such Directs box and other cable providers. The current threats for the company include Microsoft’s Ultimate TV and The Replay Network. Microsoft’s Ultimate TV was also integrated with DIRECTS and thus further tries to impede on Divot’s market share.
While the price of the Ultimate TV is steeper, Microsoft has brand power on their side. Users of Microsoft may feel compelled to purchase the Ultimate TV over Tivoli due to brand loyalty. The critical issue that the company is facing is how to remain relevant and make the projected sales. The sales growth of the device is way below the projected and is a major cause for concern. Generally when a product is introduced into the market, there is a “honeymoon phase” which allows the company to make a huge profit. This profit is due in part to the consumers who want to try a product or be the first to have a product.