Case_13_QVC_TN - Teaching Note: Case 13 QVC Case Objectives...

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Teaching Note: Case 13 – QVC Case Objectives 1. To apply the concepts of strategic management, and demonstrate the interaction between the components of strategic management: strategic analysis, strategic formulation, and strategic implementation. See the table below to determine where to use this case: Chapter Use Key Concepts Additional Readings or Exercises 1: Strategy Concept Strategic management; strategic analysis (external and internal environment); strategic formulation (generic competitive strategy, corporate strategy); strategic implementation (innovation) Exercise: Who shops on QVC, what marketing “channel” do they use to access the service? Also see embedded video link about QVC’s Web 2.0 strategy. Optional: Chapters 2, 3, Five forces; general external environmental forces; tangible and intangible resources; generic strategies; diversification, acquisition; innovation See updated information via embedded web links. Case Synopsis QVC is the leader in the home shopping market with 2008 revenues of $7.3 billion. Founded by Joseph Segel in 1986, it grew quickly to overtake rival Home Shopping Network by focusing on product variety, reliability, and excellent customer service. By concentrating on offering proprietary products endorsed by celebrities and combining this with money-back guarantees and extended-pay credit programs, Segel grew QVC to the position of industry leader. Since then, leadership has passed to the new president and CEO of QVC, Michael George, but the company’s growth continues unabated. By its initials alone, QVC promises that it will deliver quality, value, and convenience to its viewers. More than three-quarters of the shopping channel’s customers have given it a score of 7 out of 7 for trustworthiness. Most of its customers then recommend it to their friends. The success of QVC has been largely driven by its popular television home shopping shows that feature a wide variety of eye-catching products, many of which are unique to the channel. In 1995, QVC launched its own retail Web site to complement its television home shopping channel. The Web site has provided the firm access to more than 100 million households in the United States that have Internet connections. QVC has taken steps to become an innovative practitioner of electronic retailing, including on-screen interactivity where viewers can interact with television content simply through the remote control. Looking toward the future, QVC is already focusing on new avenues for growth,
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such as those that might be offered through retailing on mobile telephones. Technological developments will help QVC grow this interactivity into the future, making it easier for customers to act on what they see. This should allow QVC to continue to offer much higher margin products to both existing and new markets. QVC realizes the challenges of growing its market share and is looking for new ways to
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Case_13_QVC_TN - Teaching Note: Case 13 QVC Case Objectives...

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