1
COR JESU COLLEGE
GRADUATE SCHOOL
Sacred Heart Avenue, Digos City
Province of Davao del Sur
STRATEGIC MANAGEMENT
A Case Study of QVC
Submitted to:
BRO. ERNESTO A. QUIDET, JR.
Submitted by:
OJANO, DEIZEL MAE
NAVASCA, SHEENA
ENOPIA, ARIANNE
PINOL, EFREN Jr.
ABALDE, NAIVIE
November 08, 2020
2
TABLE OF CONTENTS
Page
I.EXECUTIVE SUMMARY 3
II.INTRODUCTION 4-5
III.ANALYSIS 5
IV.ALTERNATIVES AND DECISION CRITERIA 6
VI.RECCOMENDATIONS AND ACTION PLAN 6
VII.CONCLUSION 7
VIII.REFERENCES 7-8
3
I. Executive Summary
QVC has taken an essential measure of all the actions taken to ensure its
growth and future, especially in-home shopping and beyond. Despite the success
on television, QVC is not paying any attention to the opportunities coming up in
online shopping. The QVC.com website has played a significant role in
attracting and retaining more customers. The site has also continued to offer
much information regarding QVC offerings. The site features many products that
are not televised. Arguably, online business should also be a crucial strategy
used in boosting the future of QVC business.
In analyzing QVC, the company has encountered several tests for its
business ranging from small routine encounters to massive corporation
advancement. QVC has faced five distinct challenges during its business. Three
alternatives are mentioned, such as Value Chain Analysis, the use of SWOT
Analysis, and Porter’s Five Forces Model. However, we choose the SWOT
Analysis to help QVC’s strategic decision in understanding the competitive
forces and their underlying cause’s reveals the root of an industry’s current
profitability while providing the framework for anticipating and influencing
competition (and profitability) over time.
Multiple platforms are useful for this modern age. Globalization is a
significant part of the company’s strategy. Even with Time Company, SWOT
plays an important role. The products must still be rare, valuable, difficult to
replicate, and hard to imitate successfully. Companies must continue to expand,
or they fall behind the competition losing profits and consumers. The company
did so well the first year that it made some profits. The company uses
celebrities and hosts while training them for back-yard fence conversations,
which allows for the personal connection and rapport to make the sale.
4
II. Introduction
John Segel founded QVC in June 1986 in West Chester, Pennsylvania
and began broadcasting in November that year. QVC is widely known as a
multimedia retailer that specializes in televised home shopping. Its products are
broadcasted in five countries, namely Italy, United Kingdom, United States,
Japan, and Germany. Since its commencement, QVC has outshined its
competitors and has maintained a dominant position, especially in television
retail. QVC has upheld its strong values, commitment to quality, and
convenience. For this reason, the company had gained consumer confidence, a
competitive market, and brand loyalty. QVC offers a broad range of products
with more than 50,000 products and 1500 notable brands, including fashion,
beauty, craft and leisure, clearance goods, jewelry, and accessories, to mention a
few (Murphy, 2016). QVC often ships approximately 165 million products per
year to its customers.
By early 2012, QVC had expanded its reach on the Internet and attracted
over 9.5 million visitors every month (Murphy, 2016). The company is one of
the largest television shopping networks since its foundation. The effectiveness
of QVC leadership is evident in the company's success. The administration
personnel has experienced customer experience across QVC mobile, laptop,
web, and social platforms. Being the leading multimedia retailer, QVC is
delivering a shopping experience that is well-aligned with the trends that are
shaping today's industry. Those in leadership understand customer behavior.
Alex Miller joined QVC in 2001, and since then, the company has also
experienced tremendous growth (Senn & Hart, 2013). Notably, Miller was
responsibly accountable for all digital operations and experience and the
company's shopping business. After joining QVC, he has increased the
responsibility within QVC's e-marketing groups, internet sales, on-air and off-air
programming.
5
However, the most significant component towards achieving growth soon
is the commitment to continued interactivity in all businesses (Romer, 2013).
Notably, this will make products more comfortable and more pronounced for
customers soon. By 2016, its reach had extended to almost 350 million
households all over the world. It regularly features about 1,000 products on its
sites each week, leading nearly $9 million in sales. Beyond the United States, its
presence has grown to the UK, Germany, France, Italy, Japan, and a 49 percent
interest in China's joint venture.
III. ANALYSIS
As an industry leader in the home shopping venue, QVC can contribute a
significant amount of their success toward their ability to face challenges head-
on. Since the start-up in 1986. QVC has encountered several tests for its
business ranging from small routine encounters to massive corporation
advancement. QVC has faced five distinct challenges during its business:
Establishing a leading position in home shopping
Achieving efficiency in operations
Finding and selling profitable products
Expanding the customer base
Positioning for future growth
Confronting each of these challenges with proper diligence and planning
has afforded the home shopping network's continued success. Some factors had
a significant impact on the shopping industry. So, QVC will utilize a strategy
that will help them understand their environment to achieve success.
IV.ALTERNATIVES AND DECISION CRITERIA
What strategies should QVC adapt in analyzing both general environment
and the firm’s industry and competitive environment? The following strategies
will help QVC in examining their competitive environment.
6
1. Value Chain Analysis
Advantage: This will used to diagnose and create competitive
advantage on both cost and differentiation.
Disadvantage: Its very strengths of flexibility mean that it has to
be adapted to a particular business situation and that can be a
disadvantage since, to get the best from the value chain, it’s not
“plug and play”.
2. SWOT Analysis
Advantage: Consolidated strengths, Minimize Weakness, Help to
Grab Opportunities, Facilitate Planning, Minimize Threats,
Facilitates Alternative Choices, Helps to innovate and Ensure
Survival & Success.
Disadvantage: One stage of business planning, lack of hierarchy
leads to problems, and too much structure leads to poor decision
making.
3. Porter’s Five Forces Model
Advantage: Helps gauging competition, Helpful in Planning, and
Dealing with buyers and suppliers.
Disadvantage: Ignore other factors, No industry will be perfectly
fit, and not useful for all industries alike.
VI.RECCOMENDATIONS AND ACTION PLAN
All the above mentioned strategies are essential in the business
operation. However, we recommended the SWOT analysis in QVC. A (SWOT)
analysis knows its strengths, weaknesses, opportunities, and threats
(www.mindtools.com/pages/article/ newTMC_05html). The process enables a
company to make any critical adjustments that are needed. To assure the
company's continued positive performance efficiently and effectively, because
7
being able to foresee any hostile forces is undoubtedly crucial to the company
growth and success. Top management must continue to stay properly abreast of
its marketing and sales programs. Being able to implement the right experience
individuals to manage the plans correctly, so that it will be able to function in a
way that it will be productive but eliminate unwanted cost.
VII.CONCLUSION
QVC’s main strategy to maintain competitiveness is to continually grow
in a competitive industry. QVC is a very successful multi-platform, globalized
company. Some recommendation includes expand faster into the online market
and continue to focus on products that are high quality and in high-demand.
Possibly reducing as much importance on the tv broadcast and training since
more consumers are going online. This could save come and allow more for
time and fund to focus on the online and mobile platform. The online platform
could allow for expansion into other foreign countries and most of the product
such as jewelry is in high demand in most countries and also, to ensure that
QVC continues to maximize profits, management is discovering new products
that will yield high profit margin. It will continuously evolve in order to find
diverse products which can be mass-marketed successfully through television
interaction, and it must do so without sacrificing quality and efficiency. Like
many other companies today, QVC must keep tabs to tech industry.
VIII.REFERENCES
Kates, A., & Kesler, G. (2016).Bridging organization design and performance:
5 ways to activate a global operating model.
Murphy, I. (2016). 30 years of quality value and convenience.
8
Romer, N. (2013).Make millions selling on qvc: Insider secrets to launching
your product on television and transforming your business (and life)
forever.
Hoboken, N.J: Wiley.Senn, L., & Hart, J. (2013).Winning Teams, Winning
Cultures. Cork: BookBaby.
https://www.mindtools.com/pages/article/newTMC_05htm).
https://studylib.net/doc/9187666/case-study--the-business-strategies-of-qvc
https://www.coursehero.com/file/p38jua9/However-the-most-significant-
component-towards-achieving-growth-in-the-nearby/
https://www.case-study-the –business-strategies-of-qvc_compress.pdf
https://studylib.net/doc/8544308/case-study--the-business-strategies-of-qvc
