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Qvc Case Study

875 words - 4 pages

QVC
Case Study (Dess, 2014 p. C63)

Pamela Bates
King University
January 28, 2016

BUSA 5090 Strategic Management
Dr. Lee

QVC
Case Study
Joseph Segel founded QVC in 1986 and started televising the very same year. Since that time they have become one of the leading multimedia retailers. Oddly enough, they were not the first company in the multimedia retail. HSN (Home Shopping Network) entered the market two years prior. Embedded in its name, QVC, is quality, value, and convenience. Televising to over 200 million households via cable and satellite services, they have spread throughout the United States, United Kingdom, Germany, Japan and recently Italy. Small ...view middle of the document...

QVC recognized that some consumers are leery of purchasing without ever trying it on or holding it. The 30-day guarantee was the resolution to eliminate the leeriness from the consumer about purchasing the products.
The external forces affecting consumer television shopping are online retailers like HSN (home shopping network). E-commerce has a lower operation cost than a brick-and-mortar store. Consumers can easily compare prices using different websites. They also offer the same advantage of television shopping channel which consumers can shop 24 hours a day, seven days a week. Moreover, the type of products that consumers can browse is not fixed by the schedule. Although the demonstration of the product is not as good as television shopping channel, consumers can read product reviews posted by others who had already bought the products. The other external force of competition is brick-and-mortar retail chains like Wal-Mart and Target. Retail chains purchasing in bulk from their suppliers allow them to offer reduced prices. In addition to the consumer wanting to see, touch or try a product, the sale associates can answer any questions before purchasing.
QVC faces never-ending challenges with the advancement of technological innovations. Choosing to sell merchandise over the Internet opens many target markets. QVC has continually improved their website from being an information database to being the most diverse way of shopping for products. Their website, called iQVC, has allowed products that weren't strong contenders on T.V. to sell much better.
With continual technological advancements, consumers who are always on the go, have found using handheld devices for their purchases more convenient and can manage their time in a more...

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