Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

BADM410 Business Strategy QVC Case

No description
by

paul joshua jover

on 15 June 2016

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of BADM410 Business Strategy QVC Case

BADM410 Business Strategy
QVC Case
presented by:
Iaroslava Stetska
Kavya Kethireddy
Manjinder Bal
Paul Joshua Jover
Yu (Edward) Huang
Agenda
Case overview
Problem statement
External Analysis
Internal Analysis
Porters five forces
Strategy
Success Factors
Challenges
Alternatives
Recommendation
Conclusion
Question to cover
How did QVC grow into a successful company?

What strategy did QVC use, and how did it support this strategy?

What challenges does QVC face? How has it confronted them so far?
Problem Statement
With only 10% of their audience making purchases how should QVC position itself in order to generate new customers?
How to maintain balance between emerging technologies and its initial business model?
Case Overview
QVC – television shopping network
Founded by Joseph Segel in 1986
World’s leading virtual shopping mall that never closes
Operates 24/7
By 2012 - reached over 200 mill households
Ships almost 165 mill products annually
Operates in the US, UK,
Germany, Japan
& Italy
Mission
mission of the company is giving the consumer as many choices in the products and various kinds of brands as possible, while ensuring entertainment factor saving the great values.
Strategic Goals
proceed in their position as the pioneer in the home shopping industry
accomplishing more effectiveness in operations
continue to extend their client base.
This will help the organization for the future development
External Analysis
Political
Economic
Social
Technological
Opportunities
Threats
emerging economies limited restrictions on TV shopping industry
laws that affect the way company does it business
Opportunities
Threats
emerging markets (BRIC Economies)
new products and services
inflation
competition
income levels rising (+8.2%)
age demographic of target market rising (35-65)
Opportunities
Threats
online presence trailing behind from competitors
Opportunities
Threats
innovation evolves
availability of technology
Internal Analaysis
Strengths
Weaknesses
effective pricing strategies
unique products
effective R&D
innovation
loyal customers
reaching new customers
decreasing TV users compared to online users
brand recognition behind from indirect competitors like Wal-Mart, Amazon, EBay and etc.
Porters Five Forces
Rivalry within the industry
Threats
of
new entrants
Power of Buyers
Threat
of Substitutes
Power
of Suppliers
Moderate
High
High
High
Low
Strategy
To sell quality unique product with high margin
Success Factors
Quality & Convenience
Quality satisfaction tests
24/7
30 day money back guarantee
Credit programs
Orders shipped within 48hrs
Marketing Strategies
Use celebrities
Sales tracked minutely
Look back what spiked sales & adjust accordingly
Product Selection
Screen thousands of products to choose from
Usually exclusive to QVC
High margin products
Challenges QVC faces & how has it confronted them so far?
Competition from online retailer

– Amazon, ebay, & other retailers selling online
Reduction in television audience
Improved & transformed its website
Mobile phone and iPad applications
Alternatives
+Creates wider customer base: 9.5 mill visitors in 2012
+Increased customer convenience: One-click shopping: 5% sales from Apps
+More accessible to customers
+Cooperation with network providers can increase sales & recognition
+Room for additional product selling points
-Requires cost
-Share income with software providers
-Need of continuous updates to eliminate poor customer reviews
-Distracts customers from live broadcasting
-Moving away the initial business model and strategy
Alternatives (Cont.)
2. Global Expansion: Europe
+New international markets
+Opportunities for growth
+International brand recognition
+Previous success in Italy, UK and Germany
+QVC is #75 in Internet Retailer’s Europe 500
-Currency exchange
-International regulations and laws
-International fees and taxes
Alternatives (Cont.)
3. Increase Marketing Campaign
+Creates better brand recognition
+Generates new customers
+Retains current customers’ interests
+Increases revenues
-Cost for advertisement
-Re-vamp in advertisement campaign may result in inaccurate targeting

QVC faces two problems:
1. Improve Online Presence & Mobile App
Alternatives ( Cont)
Recommendations
1. Increase Online Presence:
2. Global Expansion: Europe
Show ALL their programs and shows on-line
Create availability of all products’ lists with a live video commercial
Use the latest software programs
Hire special IT/Engineering team
Choose countries with the largest numbers of consumers who shop online
Countries with high developed digital infrastructure
Thank You for listening!!!
Full transcript