Qvc Case Analysis
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- Category: Other
- Date Submitted: 11/27/2011 02:05 PM
- Pages: 7
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Introduction
Since QVC was founded in 1986, it has relied on strategy and innovation to become number one in the television-retail industry. It has achieved this by gaining customer loyalty and providing customers with a unique shopping experience. QVC has a clearly defined value proposition structured around 3 customer-focused elements: delivering Quality products and at the same time providing Value to the customers in a manner that focuses on Convenience. The mission of the company is give the consumer as many choices and brands as possible while ensuring entertaining programming and great values. The strategic objectives are to continue in their position as the leader in the home shopping industry, achieve greater efficiency in operations, search for profitable products and continue to expand their customer base while positioning the company for future growth.
What Challenges Does QVC Face?
The major challenge facing QVC is maintaining their position as the leader in home shopping and increasing their customer base in both the present and moving forward while facing increasing competition due to the barriers of entry in the industry being essentially brought down with the rise of e-commerce. In 1986 when QVC was founded there was no Internet. Being able to have the ability to see and purchase products on the television was a very new unique buying experience. Today anyone with a computer can become a retailer and a vendor. The rise in interactive media and communication has allowed competitors to enter the e-commerce market. Most department stores have created their own websites witch like QVC allows consumers to purchase merchandise without leaving their home. Online retailers such as Amazon.com and Walmart.com with continue to tap into QVC’s market share with a similar notion of simplicity.
Another challenge caused by the increased competition is to continue to find and sell profitable products. In order to maximize profits...
Since QVC was founded in 1986, it has relied on strategy and innovation to become number one in the television-retail industry. It has achieved this by gaining customer loyalty and providing customers with a unique shopping experience. QVC has a clearly defined value proposition structured around 3 customer-focused elements: delivering Quality products and at the same time providing Value to the customers in a manner that focuses on Convenience. The mission of the company is give the consumer as many choices and brands as possible while ensuring entertaining programming and great values. The strategic objectives are to continue in their position as the leader in the home shopping industry, achieve greater efficiency in operations, search for profitable products and continue to expand their customer base while positioning the company for future growth.
What Challenges Does QVC Face?
The major challenge facing QVC is maintaining their position as the leader in home shopping and increasing their customer base in both the present and moving forward while facing increasing competition due to the barriers of entry in the industry being essentially brought down with the rise of e-commerce. In 1986 when QVC was founded there was no Internet. Being able to have the ability to see and purchase products on the television was a very new unique buying experience. Today anyone with a computer can become a retailer and a vendor. The rise in interactive media and communication has allowed competitors to enter the e-commerce market. Most department stores have created their own websites witch like QVC allows consumers to purchase merchandise without leaving their home. Online retailers such as Amazon.com and Walmart.com with continue to tap into QVC’s market share with a similar notion of simplicity.
Another challenge caused by the increased competition is to continue to find and sell profitable products. In order to maximize profits...