Qvc Case Analysis Essay

Case QVC Author NA HG495 Case Analysis Instructor NA Abstract This case analysis will be focused on the company QVC (Quality, Value, and Convenience). We will perform an analysis review, which, will provide a comprehensive insight into the companys historical and current business structures, strategies and efficiencies in their operations. It will include a detailed SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) (Humphrey) and the primary activities of the Value Chain Analysis (Porter), to provide greater insight into the firms competitive advantage.These distinguish concepts will be used to analyze QVCs business model, define potential challenges and initiate a plan of execution. We will then recommend solutions much(prenominal) as advocating products with higher profit margins, finding evolving technologies and untapped markets and streamlining logistics. These strategies would expand the customer base and create higher ROI (Return of Investment), positioning t he company towards timely growth. IntroductionQVC is a multimedia retailer, specializing in televised home shopping, broadcasting in five countries (US, UK, Germany, Japan and, Italy), 24 hours a day, seven days a week, to oer 90 cardinal households in the United States and 160 million homes worldwide. They offer a wide range of products with over 1500 major greases and 50,000 products, including beauty, fashion and accessories, jewelry, craft and leisure, home electronics, garden, and do-it-yourself (DIY), and head goods. The company has store operations in the US, which includes Delaware and Pennsylvania.QVC also has a lucrative website called iQVC (www. qvc. com) that generates over 1 billion of sales on its Internet operations. Since it was launched in 1986 QVC has speedily grown to become the largest television shopping network. By 2006, its reach had extended to over 95 percent of all U. S. cable homes, as well as, over 25 million satellite homes. It shipped over 140 milli on packages during 2006 to customers around the world, resulting in almost $7. 1 billion in sales and over 1 billion operating profit.Sales were made to over 10 million customers, who watched its shows across the US, UK, Germany, Japan and Italy. Problem Doug Rose, QVCs vice president of merchandising brand development, claims that the interactivity in all aspects of the firms business and operations, including its television shopping channel, will need to become more pronounced. Making it easier for customers to act on what they see. QVC believes that it silent has a lot of room to grow, since only about 2% to 3% of its television viewers currently purchase at any given time. take that percentage higher is the main problem that affects the major revenue stream and would require an internal/external analysis (balance scorecard) to bring in new viewers/customers to purchase their products. There are other challenges that can attribute to generating more revenue, such as, selling pro ducts with higher margins and offering shopping channels to customers outside magnetic north America. They could also add more interactive features that would allow more access.