TiVo Strategic Paper

(1)

2011

AUTHORS Tim Bodden Elaine Christ GK Katari Peter Molina Nina Zippay 4/13/2011

(2)

2

Executive Summary

As a pioneer of the Digital Video Recorder (DVR) industry, TiVo entered the market in the late 1990’s and quickly rose to the status of technological leader. Despite protracted costly litigation over intellectual property rights it has held its ground making it difficult for other companies to compete for its premium position in the market. Meanwhile, new technology has been invented around its patents creating an increasingly commoditized market of DVRs. Further, consumer trends in television viewing has shifting dramatically such that viewing a movie, television show, or other content is done via the Internet, on demand, or from other sources. These events and trends have caused a downslide in leadership position for TiVo with market share decreasing, and subscriber rates steadily declining over time.

With revenues on the decline and its technology becoming increasingly commoditized TiVo must re-think their current strategy to re-gain its leadership status. To succeed, TiVo must change its current business model of selling both hardware and software subscription services. It must move away from the hardware (set-top box) sales model coupled with software

subscription to re-branding itself solely as a software subscription company. It will need to first phase-out hardware sales as the expenses in this revenue stream are high compared to software sales. This will allow TiVo to focus on the differentiated features such as easy interface and multiple sources of integration (on-demand video, smart search, recording capabilities, and transferability of recorded programs to personal computers and notepads). It will further allow for a focus on becoming the premium platform for DVR software in the industry and build strategic partnerships with cable network providers via licensing arrangements.

(5)

5

Introduction

TiVo, a United States corporation based in Alviso, California was formed in 1999 and became synonymous with the digital video recorder (DVR) market in the early 2000s. Its DVR systems can digitize and compress video from any source (antenna, cable, or direct broadcast satellite) and can be integrated with the set-top boxes of satellite and cable providers throughout the United States. TiVo’s offerings are distinguishable by its patented, sophisticated software. The software can automatically record programs - both requested and other programs that a user is likely to be interested in - and allows the user to use a “trick play” feature on the remote that allows a viewer to pause live television, rewind, and play up to a half an hour of recently viewed television. TiVo’s popularity also comes from the ability to skip through commercials easily - an innovation that revolutionized the way television can be watched throughout millions of

households. TiVo’s DVRs can also be connected to computer local area networks allowing for the download of information, video programs, music, and movies from the internet. In the United States market, TiVo revenue streams derive from the sale of its DVRs, which range from $100 to $400, and a monthly subscription service starting at around $12.99 a month.

TiVo’s mission is to “redefine home entertainment by providing consumers with an easy and intuitive way to record, watch, and control television and receive videos, pictures, and movies from cable, broadcast, and broadband sources.” While TiVo’s innovative hardware and software subscription business model was pioneering at the outset, the influx of generic DVRs has caused a decline in TiVo subscriptions and market share. Thus, TiVo faces a strategic issue common to technology companies encountering mature growth in a domestic market - how to maintain premium market share in an industry that has become increasingly commoditized.

This paper will begin with an in-depth strategic analysis of TiVo, followed by a review of three strategic alternatives, a recommended approach, and suggested implementation plan that will create a new strategic direction for the company. The focus of this paper is on TiVo’s presence in the United States market. While global expansion is occurring, the authors believe it will only be a matter of time until TiVo faces similar issues in other markets. Consequently, if the strategic recommendation succeeds domestically, there is a strong possibility to implement it globally with the appropriate modifications.

(6)

6

Strategic Analysis

Any technology company operating in the heart of Silicon Valley understands that their external environment is anything but static or stable. TiVo is no exception to this rule.

Recognizing the constant changes at play in the external environment and the industry at large, this strategic analysis begins by looking at the general environmental factors TiVo is facing, followed by a competitive analysis of the industry in which it competes, and finally an analysis of Porter’s Five Factors.

External Analysis

The general environment has many issues which can impact TiVo’s strategic direction. The following areas are considered: demographic, socio-cultural, political/legal, technological, economic, and global.

Demographic & Socio-cultural

The United States’ largest growing population age is over 45 years old and is not as technologically savvy as generations below it. The biggest consumer demographic of TiVo products are 25 - 45 year olds and TiVo specifically focuses on the 35 year old market when designing products and services. Since TiVo’s inception in 1999, this age group has developed into a very sophisticated technology user which has, in turn, led TiVo to increase the depth and breadth of technology in their products and services.

Technological

DVR usage and understanding is widespread throughout the United States, with other countries still in the introductory phase. Technology has made even the average home computer able to imitate the basic DVR functionality. Also, the television purchase cycle has shortened due to updates in technology, types of offerings, and faster price declines. The technology offered within a stand-alone television unit often mirrors functionality found in a computer system.

Economic

Economically, most of the world is in a recession, which means less disposable income for a luxury item such as a DVR. TiVo products are categorized as luxury items because a DVR is not needed to use or watch a television, video on demand, or access internet content. As noted above, a consumer needs to invest at least $100.00 in the actual device and then subscribe on a

(7)

7

monthly basis to the service at an average rate of $19.99 per month. If purchased through a cable provider, the subscription price is around $2.95 per month, on top of the normal DVR purchase. Although recent economic forecasts have noted that the United States economy is in an upward trend, growth will be slow to moderate in the coming months and overall year.

Political/Legal

There are still many unsettled intellectual property laws when it comes to being able to alter delivered shows. There are also outstanding legal issues with the internet and, in particular, YouTube showing copyrighted material without the permission of the owner. There are current patent lawsuits going on in technology over patent enforcement and how companies manage to get around them. Furthermore, there is always the FCC watching the different kinds of

broadcasting and making sure the current laws and regulations are enforced and appropriate, so companies need to make sure they are compliance. In summary, both the regulatory and legal climate in which TiVo operates is often in flux and requires constant monitoring and scanning.

Global

Two aspects of the global general environment are intellectual property rights and emerging markets. Enforcement of copyright and overall intellectual property laws is

inconsistent throughout the global market. The most recent important aspects in this area are country enforcement of copyright laws as technology is constantly reverse-engineered by people in countries such as China and then resold on the gray market at a much lower cost. Also, as emerging markets such as India, China, and Brazil advance, new markets for DVRs may open as upper and middle classes increase in size and their expendable incomes rise. TiVo needs to be aware of both trends and issues as they consider the benefits of global expansion weighed against the risk of the piracy and infringement of their intellectual property.

Industry Competitive Review

At the formation of the company, TiVo’s main competitors were other DVR makers, often independent companies such as EchoStar or NDS (which builds the DVR system for DirecTV) or venture groups from broadcast companies. In recent years the competitive landscape changed as the advancement of technology hardware and ease and speed of internet access increased. As more consumers are watching broadcast television via different devices or platforms, the level of viewership may not be changing but the location certainly is. Consumers now have more platforms than the standard television set to watch their favorite shows. They

(8)

8

can access media via their computer, iPad, iPhone, or other personal communication device. As the choice of platform has changed, former competitors have become allies. DirecTV, Cox Communications and Comcast have partnered with TiVo in the past to provide the DVR box as a bundled product and subscription service as an option. In some instances, such partnerships have succeeded, while in others, they have failed. Often these partners are simultaneously selling competing products and are not necessarily promoting TiVo. These competitors turned allies are playing a dual role, offering TiVo subscriptions, but renting out a competitor’s DVR hardware and service.

TiVo is unique in that it has many types of competitors, ranging from direct DVR manufacturer rivals such as EchoStar, NDS (which builds DVRs for DirecTV), internet-based content devices such as Roku and Apple TV, and TV manufacturers such Sony, who has partnered with Google, and Samsung.

Porter’s Five Forces Analysis

Threat of New Entrants – Medium to High

TiVo’s revenue streams are two-fold; hardware revenue and software subscription services. Because of this, analysis of the new entrants is also two-fold. Capital requirements remain high for brand new hardware, and TiVo is defending its intellectual property patents aggressively in court to fend off new entrants in terms of hardware design and technology. While TiVo’s enforcement of its patents has helped keep the threat of new entrants down,

Competitors in US market (rival substitutes):

EchoStar

NDS (builds the DVRs for DirecTV) Apple – Apple TV

Verizon

AT&T with Microsoft Moxi

Scientific Atlanta (owned by Cisco Systems) Motorola

LG (DVR built into TV)

(9)

9

litigation has been costly, time consuming, and the courts have fluctuated in their support of TiVo’s assertions of patent rights. Meanwhile, as the litigation has progressed, TiVo has focused its efforts on designing new technology around their current technology.

In terms of software, capital requirements are low and the threat of new entrants is higher than for its hardware. For example, there is already software on the market that anyone with a computer can use and hook up to their cable or satellite line for basic DVR service. However, the TiVo brand has remained strong in the consumer markets and preferences and brand awareness are currently in their favor.

Partnerships have been a double-edged sword because they open up revenue streams and customers to TiVo, but with the wrong partnerships they can also discount their service and they do not get direct access to these customers. Thus, these partners are sometimes both competitors and substitutes. Also, the partners have the ability to offer the service or not, because of the lack of control by TiVo.

Cost disadvantage is independent of scale because outsourcing has driven down the production ceiling for reaching cost efficiency. This has made it easier for small companies to jump into the mix and for broadcast companies to produce their own equipment and compete directly.

Power of Buyers – High

Under the current purchase scenario, with a combined initial hardware investment and software subscription service, switching is inconvenient for many consumers. However, if the consumer can bear a loss of its initial investment from the hardware unit purchase, the cost and pain of switching becomes lower as most cable service providers and competing companies offer some type of DVR product and service. There has also been a large increase in the number of competitors since company inception twelve years ago, leading to consumers having a greater ease of acceptance for the variety of products in the market. Because TiVo has increased its reliance on high volume buyers through partnerships with cable service providers, who have control over the offerings to customers, the power of buyers (the cable providers) increase their level of power and control in this purchasing scenario.

Lastly, the majority of TiVo subscribers do not perceive a substantial product

differentiation between software services. Although TiVo is the only DVR set-top box sold at retail that substitutes for cable box and allows a consumer to combine many services in one

(10)

10

interface, most consumers are not aware of this differentiation due to poor marketing efforts. Consequently, consumers typically do not place an emphasis on high quality when it comes to this type of product and the extra features are only valued by a small niche market within their consumer base.

Power of Suppliers – Medium

There is some forward integration by hardware or software manufacturers. These companies are typically the generic producers of DVRs who have broadcast companies to help them with distribution or companies who have created unique products for niche markets. Other niche products are Google TV, Apple TV, and Roku, who differentiate themselves solely as internet-based content providers. There is some switching cost, but there are many suppliers, especially in the foreign market, that offer hardware this type of device.

Threat of Substitutes – High

There are many competitors from diverse backgrounds that see potential in this area for profit. Thus, the environment has become very fragmented with each offering something slightly different, but in many cases in the eyes of the general consumer, they all sell similar products. The personal computer has become a commodity and many households have at least one. These home computers, with quickly decreasing prices, can be hooked up the household television, and with little to no additional cost, can be turned into DVRs. This contributes to low product differentiation in the customers’ eyes, which leads to a majority of users accepting the broadcast providers offerings, since they are offered at lower prices and require no additional steps to procure.

Competitive Rivalry – High

The United States market is a saturated market approaching the top of the growth curve. Globally, however, TiVo products are still in either the introduction or beginning the growth phase. The saturation in the United States market, and increased competition, has led to lower profit margins as producers are pushing for higher cost efficiency. Niche devices such as Apple TV and Roku have also siphoned off part of TiVo’s consumer base. This is a high fixed cost industry with high exit barriers, which keeps companies in this sector even if they wish to exit. The patent litigation is also very slow and costly which has led to partnerships or alliances to overcome these issues. Effective product differentiation has lowered in recent years even though

(11)

11

the word TiVo is synonymous with DVR. The users all want basic service that has become easier and less expensive to deliver as technology has advanced.

Value Net – Complements

TiVo has many complements in the current market place. It considers the broadcast television, internet, YouTube, and video on demand as complements, since they can be accessed through their new DVR, which expands the use to include all types of entertainment. TiVo is helping to turn the television into even more of a media center and a focal point for people’s homes. Other complements include offerings from standard television broadcasters and cable companies, because they can combine with these companies to help get TiVo back into the homes of millions of Americans.

Conclusion

TiVo is in a very tough spot and appears as if it could be on the verge of becoming an extinct company based on these external factors. They used to be the highlight of this industry but they did not keep up with the market and have since fallen on tough times. They are at a turning point where if the new products, services, and partnerships do not pick up they will use up their remaining cash. Also, it will be difficult to get loans on a declining business that will have an unsubstantiated product line. It does not look like more people will invest once all their cash is gone, customer subscriptions continuously falling, and the revenue streams have slowing.

Internal Analysis

Organizational Vision and Goals

TiVo’s vision is to be a “leading provider of technology and services for advanced television solutions, including digital video recorders and in the future non-DVR set-top boxes and

connected televisions.” TiVo’s mission is to “redefine home entertainment by providing consumers with an easy and intuitive way to record, watch, and control television and receive

videos, pictures, and movies from cable, broadcast, and broadband sources.” When TiVo was

founded, corporate values were written to ensure that TiVo would remain a special and different work environment. To paraphrase these values, “TiVo works to build a profitable and growing business by taking educated business risks while conducting themselves in an ethical manner. TiVo values their employees, respecting one another, working as teams and giving back to the

(12)

12

community. TiVo strives to earn and maintain customer loyalty by creating real customer value and maintaining high levels of customer satisfaction. TiVo values creativity and innovation in all areas of business.” These ideals were formulated in 2000 and have seen challenging times in the past decade. Today, TiVo is no longer a profitable or growing business. While they have not been unethical, per se, they are mired in lawsuits, both as plaintiffs and defendants. TiVo’s message to the industry appears to be “work with us or we’ll see you in court.” CEO Rogers

stated that TiVo would prefer a business solution, “but sometimes you have to protect yourself.”

Corporate Governance

The board of directors at TiVo is made up of up to nine members who stand for election every three years, in a staggered cycle. A nominating committee evaluates potential candidates in all aspects of their qualifications, with a view of creating a board with a diversity of

experience and perspectives. While the board does not require a certain share ownership, the board believes the directors should be stockholders with a long-term view of TiVo’s interests. Tom Wolzien is currently the Chairman of the Board. He currently owns a consulting firm, which consults in the media and communications industry and has over 40 years of experience in media and cable companies, including NBC. Other board members include Peter Aquino, who led RCN, a cable company, from the emergence of bankruptcy to a sale in 2010, William Cella, former ABC executive, Jeff Hinson, former Univision executive, Heidi Roizen, former managing director of a $2 billion technology venture fund who holds an MBA from Stanford and Joseph Uva, CEO of Univision. This board is made up primarily of members with an intimate

knowledge of the communications industry. Ms. Roizen is the only member with a wider view of financial markets. This may distort the view of the board rather than giving them the larger view of market outside of the communications industry. This board has been very tolerant of lack-luster performance with little guidance on revitalizing TiVo.

TiVo Organizational Chart Tom Rogers,

President and CEO

Jim Barton, Co-founder, VP, CTO Anna Brunelle, VP, CFO Naveen Chopra, VP Development & Strategy Nancy Kato, Sr VP, HR Jeff Klugman, VP GM Products & Revenue

Joe Miller ,VP, Retail Sales and Marketing

Dan Phillips, VP Engineering &

Operations

Matthew Zinn, VP General Counsel & Privacy Officer

(13)

13 Intellectual Assets

TiVo’s intellectual assets have been crucial in executing a strategy where the goal has been to change the way in which consumers access and watch television, by offering increasingly differentiated features and services to provide a best in class user experience. The current CEO and President, effective July of 2005 is Tom Rogers. Mr. Rogers holds a J.D. from Columbia Law School and has over 30 years of experience in the telecom industry. Jim Barton is a TiVo co-founder, CTO and Sr. Vice President. He was previously President and CEO of Network Age Software, where he developed the concepts which form the foundation of TiVo. Mr. Barton continues to set the technical vision for TiVo. Anna Brunelle, VP and CFO, is responsible for all financial operations. Prior to TiVo, Ms. Brunelle held controller positions at other media

companies such as Roxio and Napster. Naveen Chopra is VP for Corporate Development and Strategy and is responsible for expanding TiVo service. This upper management group has the education and experience to provide a positive position for TiVo in the industry. TiVo has a history of innovation, headlined by developing the first DVR. TiVo appears to be an open and honest environment where people can thrive. It fosters a culture which should allow for

continued success in the industry; however, they find themselves hindered by lawsuits from the past which appear to be over-shadowing TiVo’s ability to develop new and industry changing products, which will be necessary to remain competitive in the future. Matthew Zinn is the Senior VP, General Counsel and Chief Privacy Officer. He has experience in the telecom industry and is vital to TiVo’s current defense in its patent infringement case against EchoStar.

Financial Analysis

TiVo has ample cash and other liquid assets on hand to be financially solvent in the short term. Their current ratio reveals they have three times the amount of current assets compared to current liabilities. 0.00 1.00 2.00 3.00 4.00 2008 2009 2010

Cash Ratio (times) Current Ratio (times)

(14)

14

TiVo’s financial leverage is high, as they are using 40% debt in their capital structure, with a debt to equity ratio of 70%. TiVo has had to take out large loans to provide funds for its ongoing legal battles as well as R&D expenses.

Asset management at TiVo is mixed. While inventory management has improved in the last three years, the ability to collect promptly on receivables has decreased by 20%. This has resulted in over 25 days sales are in receivables in 2010.

Profitability measures all indicate that TiVo’s profitability has fallen dramatically in the last three years. Return on equity fell from a high of 70% in 2008 to negative 50% in 2010. In addition, the profit margin is in “free-fall” going from 40 cents profit for every dollar in sales to a loss of nearly 40 cents for every dollar in sales.

0.00 0.20 0.40 0.60 0.80 2008 2009 2010

Total Debt Ratio (times)

Debt-Equity Ratio (times)

TiVo Long Term Solvency

0 5 10 15 20 25 30 35 40 45 2008 2009 2010 Days sales in Inventory Days sales in Receivables

Linear (Days sales in Inventory)

Linear (Days sales in Receivables)

(15)

15

TiVo is far smaller than its direct competitors with a market cap of only $1.08B and only 611 employees. It is also in a significantly weaker financial position than most of its

competitors. AT&T and Cisco are in the best financial position, reporting double digit profit margins with the largest market caps. All direct competitors, except Motorola, delivered positive earnings per share for stockholders in 2010. Motorola recently split into two divisions; TiVo competes with Motorola Mobility (MMI), which is also struggling; however MMI has more than five times as many sales and a market cap nearly seven time greater than TiVo, with a profit margin close to the break even point.

In spite of negative financial news, the share price has remained fairly steady at around $9 per share for the last few years. This is largely because of the possible positive outcome of pending litigation with EchoStar. In summary, TiVo is solvent in the short term, however the long term outlook is not favorable. The company is highly leveraged and profitability has fallen

-0.60 -0.40 -0.20 0.00 0.20 0.40 0.60 0.80 Return on Assets Return on Equity 2008 2009 2010

TiVo Management Effectiveness

-0.40 -0.30 -0.20 -0.10 0.00 0.10 0.20 0.30 0.40 0.50 Profit… 2009 2009 2010

TiVo Profitability Measure

Direct Competitors TiVo Cisco (CSCO) AT&T (T) Verizon (VZ) EchoStar (SATS) Laclede Group (LG) Motorola (MMI) Sales 219.61M 42.36B 124.28B 106.57B 2.35B 1.69B 11.46B Net Income -84.51M 7.58B 19.08B 2.55B 204.36M 54.02M -86.00M Profit Margin -38.48% 17.89% 15.61% 9.59% 8.69% 3.23% -0.69% EPS -0.74 1.32 3.35 0.90 2.39 2.45 -0.30 P/E -12.22 13.69 9.54 41.91 15.20 15.47 -82.86 Market Cap 1.08B 95.19B 181.54B 105.62B 3.13B 848.25M 7.01B Share Price 9.00 18.07 30.71 37.76 36.81 38.31 23.78 Employees 611 70,700 265,410 194,400 2,300 1,682 19,000

(16)

16

severely in the last three years. TiVo management needs to reverse the current trends if it hopes to once again become a profitable company.

Competencies and Competitive Advantage

TiVo’s value chain identifies distinctive core competencies of sales and marketing, service, innovation, culture, and intellectual property defense. The primary activities of the value chain; inbound and outbound logistics, as well as operations, are sufficient. However, it is the Sales and Marketing departments’ ability to work with partners, and the Service department’s efficiency which are vital to TiVo. TiVo has a modular structure, using Broadcom as the sole supplier of the system controller for their DVR. They currently do not have a long-term written supply agreement with Broadcom. In addition, they do not have long-term supply agreements with several other sole suppliers for key components in their value chain. TiVo depends on third parties to supply services related to inventory management, order fulfillment and direct sales logisitics. Failure to properly oversee these processes may result in excessive risk to TiVo. The TiVo brand is well recognized as the original DVR service with outstanding software, and their strong image continues to inspire confidence in their product. It is essential that Marketing and Service continue to enforce that image. The support activities which are key to TiVo are General Administration, Finance and a strong Legal department, which has been vital in protecting TiVo’s intellectual property rights in the current lawsuit against EchoStar. The Human Resource management has been strong in mataining a culture of innovation, supporting an R&D department who continues to develop added features and functionality to the original DVR technology. A Resource Based View of TiVo reveals tangible resources such as ample cash accounts and patents. The employee base is strong, with a large number of skilled computer software programers on staff. The intangible assets of TiVo include a brand name that is

associated with a reputation for quality and service. The firm has an essential organizational capabilty of a resilient nature, fighting off patent infringments while continuing to support all other business functions. A VRIN analysis reveals TiVo does not have a sustainable competitive advantage; however if their patent infringment lawsuit is upheld TiVo will have a short term competitive advantage.

(17)

17

VRIN Analysis

Valuable? Yes, Patents for TiVo DVR technology

Rare? No, other DVR technology exists

Difficult to Imitate? No; however TiVo patents protect superior DVR software

technology

Difficult to Substitute? No, Basic DVR service is available as well as TV, movies,

internet viewing, theatre and other forms of entertainment

Conclusion

TiVo is fighting for its very existence as a company. While in the short term, TiVo has enough cash ($240M) to continue operations, long term debt financing and continuing legal battles are a huge financial burden. TiVo is using cash to settle legal battles leaving it

vulnerable. TiVo has many partners such as Broadcom, as well as relationships with retailers like Best Buy which are important in the value stream. However, their heavy reliance on sole suppliers could jeopardize the business. TiVo must update its customer value proposition soon as their reliance on their original technology is becoming dated. But with its strong brand image based on customer satisfaction, core competencies and innovative culture they can make a turn-around with the proper plan of attack and stategic tactics.

Strategy Formulation

Issues

Currently, there is a large push to integrate as much content as possible into the consumer home entertainment system. When a customer signs up for cable or satellite service, they have the opportunity to add a set-top box (STB) that allows them to access DVR and on-demand features. Aside from that, STB makers such as Apple, Roku, Google, and Boxee have devices that allow the consumer to stream additional types of programming to their television, including content from Netflix, YouTube, Amazon, and Hulu. Given broadcast television networks’ inability to understand the wants and the needs of the current consumer market and their delay in adjusting strategies that would allow them to benefit from consumer preference, combining the two types of STBs will not be an option in the near future.

(18)

18 Strengths & Opportunities

Since the current environment requires two different devices for the two types of media content, broadcast and internet, there are two different market segments that TiVo has the

opportunity to impact. One of TiVo’s biggest strengths is its ability to develop intuitive software that is unique and easily distinguishable. Most fans of broadcast television are familiar with the TiVo bleep when fast-forwarding a recorded show, whether it was because they have used a TiVo device or they have seen it replicated on television shows or commercials. It is the TiVo DVR software that holds the brand equity, and this can be used in a device from any STB manufacturer to increase the footprint of the TiVo experience.

One of TiVo’s untapped opportunities is the emerging Eastern European and Asian markets. Those markets, except for Japan and South Korea, tend to stay a generation or two behind Western trends. With TiVo’s current technology and manufacturing of STBs, they can make a strong marketing push and gain control of those markets and would have the opportunity to establish the TiVo brand to reach the level of recognition it has in the U.S.

Weaknesses & Threats

TiVo’s biggest weakness is that it has focused on selling its own STB in a market where there is no room for it. With the advent of HD television, an STB is required from the

consumer’s cable or satellite provider. If that provider does not offer a TiVo device, that

household is removed from the possible customer base. This makes STB manufacturers such as Motorola and Scientific Atlanta (Cisco) TiVo’s biggest competitors. Providers such as DirecTV, Time Warner, and Dish Network that facilitate the growth of those competitors’ install base end up becoming TiVo’s biggest threat.

Another looming threat for TiVo is the current patent lawsuit brought by AT&T, with financial support from Microsoft, and other litigation with EchoStar. There is no visible timeline for the resolution of the case because the courts have involved the United States Patent and Trademark Office to make a ruling that will narrow the issues at trial. Microsoft’s and AT&T’s deep pockets can easily extend the lawsuit long enough to cause TiVo to use up all of their cash, causing them to either have to shut down their operations or need to be acquired to continue the TiVo brand.

(19)

19 SWOT Analysis Summary

Internal Analysis

Strengths

- Core competency of software development

- Secondary competency of device manufacturing

- Brand equity of TiVo software and user-interface

Weaknesses

- STB customer base being taken by cable and satellite providers - Long term debt load - High cost of current patent

infringement lawsuit with EchoStar

External Analysis

Opportunities

- Untapped customer bases in emerging markets such Eastern Europe and Asia

- Leverage software development abilities to create licensing

agreements with STB manufacturers. - Restructure organization to focus on

higher margin software than lower margin manufacturing

Threats

- Lawsuits brought by AT&T and Microsoft which may lead to loss of patent protection for core technologies - High cost of defending against patent

lawsuits

Key Strategic Issue

TiVo’s business is on the decline. It’s most critical strategic issue is determining how to maintain premium market share in an industry that has become increasingly commoditized. The set-top box that TiVo sells has no way of overcoming the market strength of the device that is included when signed up for cable and satellite service. A customer no longer has a reason to take the extra step of acquiring a TiVo DVR when their cable company will provide one at a lower cost and without the need to order it separately, or purchase it at a retail location.

If this issue is not addressed, TiVo’s market share will continue to erode until the point of non-existence. There are customers who have, at some point paid for a “lifetime” subscription, but that does not provide a continuous stream of income. There will come a time when that device will stop functioning, and there will be no incentive for that customer to purchase a new TiVo device when their TV provider can supply one at a lower cost, will replace it with a newer model with more features, when available, and will replace it if it stops functioning properly.

(20)

20 Strategic Alternatives

Exit from Manufacturing of DVR Set-Top Boxes & Create License Agreements with Set-Top Box Manufacturers

TiVo’s biggest strength is the software that runs on its devices. They need to leverage this core competency and work directly with the STB manufacturers and create licensing agreements to have them install TiVo software on the STBs that they manufacture, then distribute that hardware to cable and satellite providers. This would allow for a continuous stream of income for every device installed in a consumer household. Broadcast television STBs will not be going away anytime soon, so this income stream will allow TiVo to take advantage of the current industry model. Overall, DVR technology is similar across DVR devices, but TiVo software has the advantage of being simple and intuitive. Even users who are not tech savvy can navigate their way through the system easily the first time they pick up the TiVo remote.

The current TiVo business strategy is differentiation with a focus on the tech savvy consumer who would go out of their way to purchase a set-top box without the assistance of their broadcast television provider. If TiVo eliminates hardware manufacture and has their software installed across as many STB brands as possible, they would have the potential to increase their install base to every television viewer, as opposed to the just the niche of the techie consumer.

TiVo’s corporate strategy would become one of scope. It would focus on its core competency of software development. The organization would restructure itself from a

manufacturing and development one to a strictly development organization. This would allow for the elimination of the fixed costs involved in set-top box manufacturing.

Expand into Internet-Based Content Devices by Acquiring Roku

The internet-based content delivery market is growing very rapidly, with products currently available from Apple, Google and Roku. Currently, a device’s success is being determined by the distributors’ abilities to license the largest amount of content for those devices. Roku and Apple TV devices are quickly gaining ground while Google, with their vast amounts of available cash, were not able to secure the content that they thought they would, and is quickly failing. TiVo has the opportunity to use their existing software in this type of device, and can adjust their manufacturing plants to build these devices. If TiVo were to enter this

(21)

21

market segment by acquiring Roku, they would also acquire content agreements with Netflix, Hulu, MLB, NBA, and many other valuable content providers.

Given TiVo’s experience in manufacturing, they would have the advantage of cost leadership, because they already have the plants in place to manufacture these devices, where Apple and Google are new to this type of device, so they would have to build more relationships with existing plants or build their own plants to accommodate the increased demand of the growing market.

Their corporate strategy would be that of related diversity by using their secondary competency of device manufacturing to expand into a different use set-top box. If they gain enough share, they would be able to turn manufacturing into a core competency, like their software development abilities currently are. They would be able achieve this method of diversification through the acquisition of Roku, which is still a relatively small company, but whose name is quickly becoming associated with internet-based content delivery.

International Expansion of Current Product Line

With the slower expansion of DVR technology in emerging markets, such as India and China, they can keep their current manufacturing and software development skills untouched, and expand the organization into those markets. They would need to apply an international strategy to the organization because of the need to adapt the product software to the language of that market area. Since these are emerging markets, they would also have to minimize the costs of their hardware to be able to be a low price option for these new consumers. Since the

hardware is manufactured in Asia, costs of getting the product to those markets would be low, relative to the shipping costs of getting the product back to the United States. TiVo would also be able to take advantage of the lower cost software development labor in India and China, which would have the advantage of knowing the language that the software needs to be adapted to.

The biggest issue may come about when U.S. software development managers need to communicate with developers on the other side of the globe. There will be some language barriers that will need to be overcome, but they will need to be handled quickly, so as not to have a negative effect on the quality of the software, so as not to cast a harmful shadow on the

(22)

22 Evaluating of the Alternatives

Exit from Manufacturing of DVR Set-Top Boxes & Create License Agreements with Set-Top Box Manufacturers

Pros Cons

- Elimination of high cost manufacturing operations

- Potential customer base extends to ALL cable and satellite customers

- Focus on core competency of software development

- More resources spent on software development to foster innovation in that competency

- Minimal impact on mission, since they focus on the television viewing experience, will remain mostly unchanged

- Minimal impact on culture, since developer environment will be untouched

- Increased R&D spending on software development, since they will be replacing the R&D departments of the set-top box

manufacturers

- Some STB manufacturers may hold out on agreements awaiting outcome of current litigation - Manufacturing department would be eliminated,

possibly causing morale issues and job security worries associated with organizational

restructuring

Expand into Internet-Based Content Devices by Acquiring Roku

Pros Cons

- Entering the growing market segment of internet-based content delivery devices

- Core competency of intuitive software

development expanded to larger customer base. - Minimal impact on mission, since they focus on

the television viewing experience, will remain mostly unchanged

- Increased costs due to increased development team

- Increased costs due to increased manufacturing operations

- Large cash outflow to acquire Roku

- Culture may become more “corporate” and less “start-up casual” because of increase in employee numbers and the need to keep employees focused and organized with larger teams

International Expansion of Current Product Line

Pros Cons

- Increase of customer base in emerging markets - Potential to be the main DVR hardware provider

before competitors move into Eastern Europe and Asia

- Manufacturing competency used to keep costs low and provide low cost product for new consumers

- Entering the growing market segment of internet-based content delivery devices

- Costs of international expansion, marketing, and managing international employees needed for localization of products

- Potential of new markets not accepting DVR technology

- Potential legal or political barriers associated with entering markets with very controlling governments, such as China

(23)

23 Recommended Alternative

Our recommended alternative is to exit from manufacturing of DVR set-top boxes & create license agreements with set-top box manufacturers. It is believed that this is the best solution because it removes TiVo from the current business model of manufacturing which is causing continues losses. It is time to stop throwing good money after bad, since the market for the current product is shrinking. The alternative of expanding internationally has a very high initial cost because of the localization of the software for the market. Once the product is

localized and available for sale, TiVo would still have to establish a customer base, which would take time, if they are able to do it at all.

The alternative of expanding into internet-based content devices would not be optimal either because it keeps TiVo in the STB manufacturing business, which is an expensive model, since sales are decreasing, with no solid method of reversing that trend, and acquiring Roku would be a very large expenditure at a time when the cash can be used in other parts of the business.

If TiVo exits manufacturing, they can focus on software development. Their biggest selling point to create license agreements would be the ability of STB manufacturers such as Cisco and Motorola to eliminate their own R&D and development departments that provide the software for their DVRs.

TiVo’s corporate strategy would become one of scope, and would focus on its core competency of software development. The organizational structure would change from a manufacturing and development one to a strictly development organization. The current business strategy is one of differentiation with focus on a niche market. Usually, a combined strategy like this would lead to an advantage, but since the goal of the TiVo product is to get it into as many households as possible, the niche factor is detrimental to the business. The business strategy with this alternative would remove the focus factor and allow TiVo to become a staple in most American households, like a television set is today.

(24)

24

Strategic Implementation

Financial Feasibility

This implementation plan will be based upon funds stemming from the divestment of the hardware component of its operation and the revenue growth derived from increased licensing arrangements and strategic alliances. As the workforce will be down-sized and manufacturing costs may decrease, funds previously used for these expenses will be diverted into software design and strategic alliances.

Changes to Vision, Mission, and Goals

Presently, the vision of the company is to be a “leading provider of technology and services for advanced television solutions, including digital video recorders and in the future non-DVR set-top boxes and connected televisions.” In light of changing consumer trends this statement is too narrow. As the company moves forward with the recommended strategy it needs to remove the set-top box manufacturing section and expand its vision and mission statement into a broader concept beyond “television solutions” to “being a leading provider of software technology of visual media.” This change will reflect the changes in consumer consumption of media and help reflect both a broader market of prospective and existing consumers (e.g. those who watch media only from computers or other devices). It will also allow for greater awareness of TiVo’s expanded offerings. For example, TiVo provides the ability to download photos and other media into its systems. The current statement does not reflect such differentiation nor is it broad enough to encompass further innovation.

Any strategic goals referencing hardware or development thereof will need to be deleted and amended to innovative software design. Lastly, a suggested addition to the mission

statement or strategic goals would also be to forge new strategic partnerships.

Corporate Governance

To expand its knowledge base and help change its strategy TiVo needs to expand the breadth of experience of its board. It should begin by expanding from six to nine board members and seek out and select board members from the software industry to help provide increase its knowledge of in-depth trends and advancements. Experienced board members should also be solicited from hardware manufacturers (e.g., Motorola) to assist with integration. In addition, it

(25)

25

would be helpful to add a board member with marketing experience in the Asia Pacific region with experience in global expansion into those emerging markets.

As the company begins the implementation process board meetings will need to increase with greater frequency (e.g., monthly) to discuss and stay abreast of the implementation process and to more closely monitor competition. Visits from board member to different facilities and face-to-face meetings with employees will help boost morale and confidence throughout this change and upheaval. Finally, in order to create an atmosphere of trust, the level of transparency of management decisions and strategic direction should increase.

Organizational structure

While the current functional structure will remain in place, it will need to create new VP position and a department for Quality Assurance for software testing and development. Creation of this new department will improve performance and quality of its software design and help ensure that hardware manufacturers and service provides choose TiVo as its premium device software of choice. This new department will also solidify and enforce the new strategic direction of company in innovative software design and will help maintain its premium price point and status in the marketplace.

On a lower level, it is recommended that strategic software teams be formed within the organization to help advance and accelerate growth in software design. These teams will also be given the autonomy to collaborate with loyal TiVo customers via blogs, open source

communities, and bi-annual TiVo conferences hosted not by the company but by the customer base to ensure autonomy and credibility.

A further extension of teaming with external partners will be necessary to advance its strategic partnerships and alliances. A culture that recognizes and acknowledges the

interdependence with outside hardware manufacturers and media service providers will also need to be formed. Small teams similar to those in software design will be formed but this time with a core group of external shareholders such as hardware designers from strategic alliances and broadcast companies. The purpose of these teams will be to strengthen the relationships in order to improve the integration of the software with the hardware components. Improving

(26)

26

integration. For example, if there are problems with the integration between the software and the hardware, these teams will be able to create solutions faster as the hierarchies and bureaucratic levels will be reduced and trouble-shooting and problem-solving can begin immediately. Such teams will perform duties in a virtual workspace environment due to resource constraints and for efficiency.

People and Skills Leadership

A critical role in TiVo's leadership will need to be grounded in its ability to forge critical partnerships, working together with the major companies of the media, technology, consumer electronics, and television industries. Examples of new strategic partnerships will now focus on the giants of manufacturing devices such as Motorola and Cisco. Leadership development skills will include enhanced networking skills outside of the company. The effectiveness of this new leadership role will be, in part, reflected in the new partner roster indicating the increased level of industry support of TiVo.

Divestment and Restructuring of Hardware Systems

As the company begins to divest its interests in the hardware portion of its business restructuring and layoffs will occur. Some members of the hardware design groups should be retained in order to ease the transition and to consult with new partners. Other personnel may need re-training for potential transfers into the new department, should their skills sets match the needs of the organization.

Software Design Hiring and Skill Set

To help drive the change from hardware and software to a more strategic focus on software design and development, TiVo will need to institute the following hiring practices:

 Recruit more software engineers (from US and other countries) from universities

 Increase recruitment of software marketing personnel

Software designer skill sets will include the following:

 Ability to insure software and system architecture are in synchronization

 Understand performance expectations

(27)

27

 Manage risk identification and evaluate mitigation strategies associated with design and

architecture

 Insure that the design comes out in stages in a timely fashion so that the overall

organization can make progress on all levels – marketing, sales, etc.

Such qualifications will require creative thinkers and individuals who are flexible as the design will be subject to change throughout the process.

Marketing and Sales Skill Sets

In other departments, such as Marketing and Sales, current employees and new hiring will need to increase their business acumen in business to business sales and marketing in order to develop and foster relationships with hardware manufacturers. Skill sets necessary for these individuals will include the following:

1. Communication – ability to communicate with prospects, current customers, co-workers, and management require excellent communication skills

2. Networking – as the company’s new focus will be on strategic partnerships and alliances, online, offline and social networking skills will be essential

3. Analytics and trending – the ability to create and/or understand accountable metrics and to understand the underlying data

4. Flexible forecasting – as the technology arena moves at such breakneck speed, forecasting skills and the ability to be able to adeptly re-forecast in light of competitive threats and changes in the marketplace will be needed

Culture, Reward, and Control Systems

TiVo’s current culture advances innovation but is currently split between innovative hardware and software design and development. As the company begins to implement the recommended strategy it will need to strengthen its team culture to create a higher level of innovation with a focus on software. Successful innovative software design also requires a learning organization framework and culture. Thus, the recommendations below will address the creation of a team culture and a learning culture to help foster a proactive approach to the

unknown. In addition, reward and incentive programs will also be changed to increase performance in alignment with the TiVo vision and goals.

(28)

28

To enhance the team culture and create a level of empowerment, titles and hierarchies within these teams will be minimized or eliminated. These teams will also be given the autonomy to collaborate with loyal TiVo customers via blogs, open source communities, and TiVo conferences to enhance innovation and creativity. The gathering of external information and insight from its core consumer base as well as experienced developers outside of the organization will increase and enable creativity and expand the knowledge level beyond the internal boundaries of the organization. The gathering and integrating of external information will also enhance their crowd-sourcing efforts such that software development teams will be tracking external information on a more regular basis and creating a constant feedback loop between core customers and company employees. This practice will require an interdependence and knowledge-sharing network amongst TiVo software development teams and the open source community.

Leadership can help instill this culture via story-telling of its past successes of software design in order to inspire new hires and present employees alike. To truly innovate and build upon its past successes TiVo must also draw upon the talents of all employees, regardless of status or position. Employees who innovate and create at all levels will need to be recognized and celebrated by the leadership to help engender and foster a learning environment that enables innovation. Lastly, leadership will need to promote outreach efforts to core consumer groups and open source communities.

A more creative work environment and culture can also be fostered with casual dress code and flex-time work schedules.

Reward Systems

To promote this culture reward systems will need to be closely linked to risk-taking and innovation-oriented behavior. Employees from low-level to management must not be penalized for failures. Rather, these individuals can be encouraged to work on other projects where they can leverage their experience and insight. Employees will be given at least 10-15% of their time to work on personal creative projects. To instill a focus on the company’s mission, stock option plans at discounted rates will be provided to employees at all levels. Performance plans and reviews will focus on long term goals and achievements rather than short-term expectations and results.

(29)

29 Changes to Systems and Processes

To facilitate open source collaboration information systems will be created for sharing in open source environments. Blogs and other internet marketing tools will be created to foster communication with core consumer groups, including social networking proposals. These internet-based sharing tools will increase the speed at which end-user consumers can drive innovation for software design.

Implementation Plan – Steps and Timeline

Balanced Scorecard

As TiVo is continuing down the path as an innovative company with a highly differentiated product line it is important they focus completely on their core competency of software development. In order to do this they must continue to be a learning organization. New teams of cross function members will be developed to facilitate R&D. Most of the employees at TiVo are professionals and therefore the monitoring and control systems will depend on

behavioral controls including training, attendance at industry-wide conferences and a strong company culture. It is important that management support the efforts of creativity while at the same time setting targets for release of new software on which the company and its new partners will be dependent. TiVo is dependent on loans for meeting their long term obligations and newsletters and communication from management must be frequent and contain a sense of urgency and single-minded focus on release of updated software. The staff must be reminded

(30)

30

with storytelling of the integrity and high ideals the company was founded on and encouraged to maintain these standards.

The Balanced Scorecard looks at the company from four essential points of view. The financial goals are of high significance and may be the most difficult to achieve. The

shareholders should already understand the current precarious position the company. Therefore the goal must be to avoid financial ruin of the company in the short run. While a portion of the large cash reserve must be invested in software R&D, a current ratio of one should be maintained to provide adequate liquidity to avoid short term financial problems. In addition, management should strive to maintain a long term debt-equity ratio of no more than the current 70% while at the same time maintaining a stock price in the current $9 range. The business processes goals are to create cross-functional R&D teams who will begin work together by Q3 of this year and deliver a new software package by the end of 2012. From a customer perspective, the TiVo brand image must be maintained. A customer satisfaction survey should be performed by the end of 2011 which should reveal that our customers are satisfied at a minimum of four on a scale of one to five. It is also imperative that TiVo begins negotiations with partners for a new

software package. It is important that TiVo reaches out and to begin negotiating with at least 3 partners before the end of 2011. In order to achieve the new vision to be the “leading provider of software technology for visual media”, TiVo must focus on their core competency of software development. The goal is to hire 100 highly skilled software engineers who have the right fit for the TiVo culture by the end of 2011. Along these same lines, the goal is to appoint three new members to the Board of Directors. These members should be from diverse backgrounds including the software and hardware industry and one who has extensive experience in international marketing.

Conclusion

The external analysis reveals that TiVo is in a difficult market. The competition is rapidly commoditizing the DVR market and TiVo’s value proposition to the coveted 35 year age group is rapidly deteriorating. The Five Forces analysis shows high or medium threat levels from all sectors, especially competitive rivalry. The target market subscriptions are declining and the internal analysis of TiVo confirms the shaky financial footing of the company. The short term stability of the company is good with a current ratio of three. However, the long term

(31)

31

finances demonstrate a highly leveraged company which is incurring a high debt load to subsidize the on-going legal battles over patent infringement with EchoStar as well as lawsuits with other competitors.

The primary strategic issue facing TiVo is how to maintain a market share for a highly differentiated product in an industry that has become increasingly commoditized. Several alternatives were investigated including expanding into internet-based content providers by acquiring Roku or expanding internationally with the current product line, however, a large cash outlay to acquire Roku would be a risky move as the cultures may clash and expanding globally with the current technology would result in at best a temporary competitive advantage.

Therefore we recommend TiVo exit the set-top box market and aggressively pursue licensing agreements with set-top box manufacturers. This would allow TiVo to focus on its core

competency of software development and create a synergy that would be beneficial to TiVo and its partners, as well as creating a truly extraordinary value proposition for the end user. In order to implement this strategy it would be necessary for TiVo to change its vision. Rather than focusing on the past vision of being the leading provider of technology for television and services for advanced television, it must now focus on being the leading provider of software technology for visual media. This new focus will allow TiVo to exploit its innovative culture and increase the differentiation of its software to create new value to the customer. Creating new R&D and Strategic licensing teams will allow TiVo to focus on the development of selective partnerships with companies with whom they will create synergistic relationships. TiVo must focus on a way forward, eliminating the attention diverted to set top boxes, away from their core competency. Commitment from an increasingly diverse board of directors and upper

management will be imperative in the implementation of this strategic change in direction. TiVo is at cross-roads and must re-invent itself with a committed focus on its future as the software provider of visual media for the future.

(32)

32

Appendix

(33)

33 Summary of Interview with Mathew Zinn, Chief Privacy Officer - TiVo, Inc.

The vision of goal of TiVo is to be the one box you use or the one UI that you go to watch what you want when you want it. TiVo is the only box you can buy at retail that

substitutes for cable box and allows you put so many services all together in one interface – there is no other device does that in the marketplace. Most consumers do not realize that TiVo can replace your cable box and do so much more. Everything else (cable providers, Roku, etc.) are merely partial solutions. However, the company does not have the retail sales that justifies a high spend on marketing to relay this message. Most marketing is internet based and they try to do it as inexpensively as possible.

TiVo is unique in that they have multiple types of competitors. Competitors were

originally cable providers and their DVRs but with changing consumer trends, they now compete with different types of companies, ranging from cable providers (with their own DVRs), Roku, as well as even television manufacturers such as Samsung.

Focus is on operating license deals in US and other countries such as UK, India, New Zealand, etc. They are focusing their energies on creating the “hybrid TV solution.” In UK they have become the exclusive software provider for Virgin Media. They have no hardware or marketing costs. Virgin Media benefits because they can use TiVo to differentiate against their competitors.

They have a high investment in litigation (which shareholders value) and research and development (due to cable partnerships). Investors aren’t interested in the retail business as their focus is on the service provider business and patent litigation.

Globally, there is a huge land-grab going on in Europe with strong push for exclusive hybrid TV solution deals being executed (e.g., TiVo deal with Virgin Media).

To enhance strategic partnerships there are whole teams dedicated to customer support, sales, etc. which are organized and conducted on a virtual basis. They have learned that it is important to pick the right partners and it is better to do exclusive deals with people that want to work with you. For example, Comcast was a disaster in part due to their infrastructure (over 800 VPs) which did have experience or true interest in forming partnerships with outsiders. They have found that many cable companies in the US have similar limitations in infrastructure and attitude.

(34)

34

TiVo has a unique structure between retail sales and strategic partnerships. While investors are not as interested in the retail side of the business, it creates value for the company in that it allows TiVo to innovate based on what consumers want. Innovation is not dictated by what cable providers want – it is end user driven. What they learn on the retail side and the innovations that come from it can then be leveraged across all strategic partnerships driving more value over other competitors.

They are working more closely with open source communities. Their operating system was based on Linux, which is an open source platform. There is a lot of give back to the open source community but he recognizes there could be more. Their UK platform is evolving from Flash and this is the new direction of the company.

Hardware operations are small, consisting of only about 10 people. Business is almost entirely software. They currently just break even on the hardware. The only reason they are still in the business is that they have not been able to depend upon anyone else in the past.

No SWOT analysis is done as part of the decision making process. Most decisions are opportunity driven analysis. Deals are hard to come by and take a long time in the making.

(35)

35 Balanced Scorecard

(36)

36

Bibliography

" C h a r t e r a n d T i V o E n t e r I n t o S t r a t e g i c R e l a t i o n s h i p t o D e l i v e r I n n o v a t i v e I P E n a b l e d V i d e o P l a t f o r m . " A s s o c i a t e d P r e s s A l e r t J a n u a r y 2 4 , 2 0 1 1 , O n l i n e . K i m , R y a n . " T i V o l o s e s s u b s c r i b e r s b u t f i g h t s t o s t a y a h e a d i n t h e D V R m a r k e t . " S a n F r a n c i s c o C h r o n i c l e N o v e m b e r 2 8 , 2 0 0 9 , O n l i n e . K i m , R y a n . " T i V o ' s s u b s c r i b e r s l i d e c o n t i n u e s . " S e a t t l e P o s t -I n t e l l i g e n c e r N o v e m b e r 2 4 , 2 0 0 9 , " M i c r o s o f t s u e s T i V o o v e r p a t e n t . " S i l i c o n V a l l e y / S a n J o s e B u s i n e s s J o u r n a l J a n u a r y 2 0 , 2 0 1 0 , O n l i n e . R u s s e l l , F r a n k . " T i V o R e p o r t s L o s s f o r Q u a r t e r " S a n J o s e M e r c u r y N e w s A u g u s t 2 6 , 2 0 1 0 , P r i n t . S p a n g l e r , T o d d . " C a n T i V o R e i n v e n t I t s e l f ? . " M u l t i c h a n n e l N e w s D e c e m b e r 1 4 , 2 0 0 9 , P r i n t .

TiVo Annual Report January 2011

www.TiVo.com

Y a o , D e b r a . " T i V o b l e n d s T V , W e b . " G r a n d R a p i d s P r e s s M a r c h 7 , 2 0 1 0 , P r i n t .

TiVo Strategic Paper

2011

Table of Contents

Executive Summary

Introduction

Strategic Analysis

Strategy Formulation

Strategic Implementation

Conclusion

Appendix

Bibliography