Running head: QVC 1

QVC
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Table of Contents

Abstract................................................................................................................................3

[Introduction........................................................................................................................4

Situational Analysis.............................................................................................................4

SWOT Analysis

Pestle Analysis
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Introduction

QVC Television – A Model To Watch

QVC television network is an international free-to-air (FTA) television network owned by

QVC Group. It is a sign of growing challenges for the traditional television broadcasting
business, and the company has indicated that it will continue to invest in the future to strengthen
its position in the television sector. In this article we will look at the QVC business analysis and
forecast and examine some of its challenges.

The challenge that QVC poses to traditional TV business is that they are very well positioned to
capitalise on the changes in consumer spending patterns and the increase in the availability of
digital channels on TV. They have adopted a model of investing in both new and old programs.
For example, they have invested in popular dramas that attract audience. However, in addition
they have invested in unscripted shows that provide the opportunity to interact with their
audience and develop relationships.

The QVC business analysis identifies five key areas that it intends to target in the next few years.
These areas are High Growth, emerging markets, niche programmes, digital penetration and
customer behaviour and demographics. We will look at each of these areas in turn. This will give
us some indication of where the company might be heading in the next few years. This is another
area where they are ahead of the game.

One area in which QVC is trailing behind many of its competitors is in the High Growth area of
the market. High Growth simply means increasing the number of people watching a show. In this
market we are looking at things like Friends, CSI, House, Gossip Girl and repeats of popular
shows such as Keeping up With the Steins. If you are able to develop an unquantifiable quality
that sets your programme apart from that of the competition you stand a good chance of success.

Another area in which QVC is way behind the pack is in the emerging markets area. In this
market you are looking at markets where there has been very little or no development for a
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couple of years. You have got to be really creative to come up with new ideas and concepts to
sell products and services in these markets. It is important that a company such as QVC can
come up with exciting marketing ideas, concepts and strategies to launch their product
successfully.

In terms of the niche area of the business analysis we find that QVC Television Network is ahead
of the pack by a long way in the niche of digital video surveillance. Digital video surveillance
has matured and the market is now saturated with a variety of different companies offering
different products and services. By positioning themselves as an industry leader in digital video
surveillance a company such as QVC can create a significant amount of differentiation and put
themselves ahead of other competitors in the market.

A final area in which QVC Television Network is lagging behind is in the area of business
analysis. This is one of the most important sections of the business analysis and it covers all the
various aspects that go into running and growing a successful business. In this section of
business analysis you will need to focus extensively on market coverage, profitability, customer
reach and the market penetration. All of these are extremely critical issues and if a company can
show that they are well ahead of the competition in any of these areas it can have a significant
impact on their overall profitability.

We believe that there is a strong future for QVC Television Network and we believe it will
continue to grow and expand into new niches as the competition becomes more difficult. The
business analysis report from last year highlighted some areas in which the company had made
great strides and this growth has continued. As we have noted previously, their service and
support of the network have been excellent and we believe that the customer service levels are
high. We also believe that they have been able to attract some of the biggest names in the
television industry onto their network and this has been extremely helpful to their growth.
However, as the demand for high-quality, low-cost television programming increases we believe
that the pressure on the network’s management will only grow. So, we believe that the QVC
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model will not be in danger, but will instead continue to expand and strengthen as the
competition becomes more difficult.

Improving Business Networking With the Help of QVC Television Network

QVC is an American cable television network, and premier shopping channel focusing on live
home shopping, owned by Qume Shopping Group. A majority of its television programming
(more than 150 channels) is exclusive to QVC, but it does have regional pay-per-view sports
programming as well as general entertainment channels. The company is known for its focus on
offering the most comprehensive shopping experiences through an innovative system of on-line
and off-line service that enables customers to make their purchases from anywhere in the world.

Through a revolutionary new technology called QVC Viewing, customers can “shop” for their
purchases right from their own homes and at any time of day. The revolutionary feature is
provided by the Viewing technology that allows customers to control their favorite items and
instantly see them on television. For the first time ever, a consumer can now sit in the comfort of
their living room and have up-to-the-minute information about the latest trends, products and
services with the help of a QVC Viewing screen, as well as being able to shop from a secure
online shopping cart.

For those who prefer to do their shopping in the comfort of their own home, there are many
additional features and benefits provided by the QVC Viewing technology. For example, the
network provides interactive features such as customer review systems and live representatives.
Customers are able to view their purchased items and easily rate them according to their own
personal criteria. They can even take their favorite items along with them to the store and have a
live representative to help them with their purchase!

The QVC business analysis software also provides the facility of online community boards,
which are great tools for marketing a product. As a member of the community, you can
participate in discussions, post questions and receive valuable feedback from others. This
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information is vital for QVC’s ongoing commitment to the consumer. Through its numerous
community boards, QVC is able to provide valuable information to the marketeers and
advertisers on a host of topics ranging from entertainment and technology to health and wellness.

With this interactive feature, QVC customers can engage directly with the business team of the
company. Moreover, business analysis software offered by the network is easy to use and
understand. Even kids can have fun participating in the live discussions. With this feature, QVC
has become a leading force in the home business market. The features and functions explained
below will help you enhance your business experience:

Business Analysis – With the help of the QVC business analysis tool, you can access information
on a host of topics including business growth, product diversification, market penetration and
competition. This data will help you decide which areas you need to work on. You can view the
strengths and weaknesses in your business as well as identify opportunities to expand your
business. To take full advantage of this interactive feature, you can post your questions and get
answers from the QVC staff. Through this, you can also learn more about live representatives
from your network.

Viewing Members’ Blogs – With the help of QVC television network blog viewer, you can
access the members’ blog to view and add comments on important topics. If you are confused
about something or do not understand something on the blog, you can ask questions through
chat. A live representative will be there to answer your queries. To enhance your business
experience, you can visit and network with business owners in your community. Through
networking and business analysis, you can also learn about the latest products and services
offered by the company.

Social Media Connections – Through the QVC’s Facebook and Twitter accounts, you will get to
connect with people from all over the world. With this feature, you will be able to share useful
business information with your peers and employees. Through this, you can learn how to make
your network stronger. Additionally, this helps the network gives out relevant updates that will
keep your audience updated with what is happening in their business.
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Situational Analysis

SWOT Analysis

Strength:

 Strong brand Recognition because of the presence television broadcast technology

for a long time ( Since 1986).
 Currently Present in Six Countries USA ,United Kingdom, Japan etc
 Has reach to over 236 M households in the market it currently deals.
 Dedicated Consumer Base due to over 26 years of Working experience.
 Presence Across Broadcast, Internet, mobile Platforms and also retail outlets.

Weaknesses

 The Present Population is shifting itself from the television to the online
Portal. Thus Reducing the QVS’s market share and income.
 Unable to expand in the E- commerce space it must keep up with the
competition.
 It’s is live channel, hence no item again runs. So it is the disadvantage for the
customers.
Opportunities

 Expand though Acquisition in the online – commerce space.

 Growing need for the new Items and services. Which the firm can fulfill fur t
presence Across multiple channels.
Threats
 Fierce Competition among the rivals especially in the E- commerce sites
 It could be dragged into the price war to gain the market share in the future.

QVC Group Porter Five (5) Forces Analysis for Services Industry
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Threats of New Entrants

New rivals in the list brings advancement, new ways of doing things and put difficulties
on QVC Group through decreased pricing strategy, decreased costs, and delivering new value
propositions to the consumers of. QVC Group has to manage all these challenges and build
suitable hurdles and standards to protect its competitive edge.

How QVC Group can tackle the Threats of New Entrants

By Advancemt in the new items and services. New items not only brings new
consumers to the fold but also give old customer a reason to buy QVC Group ‘s products.
By building economies of scale so that it can lower the fixed cost per unit.
Building capacities and spending money on research and development. New entrants are
less likely to enter a dynamic industry where the established players such as QVC Group keep
defining the standards regularly. It significantly reduces the window of extraordinary profits for
the new firms thus discourage new players in the industry.

Bargaining Power of Suppliers

All most all the companies in the Catalog & Mail Order Houses industry buy their raw
material from numerous suppliers. Suppliers in dominant position can decrease the margins QVC
Group can earn in the market. Powerful suppliers in Services sector use their negotiating power
to extract higher prices from the firms in Catalog & Mail Order Houses field. The overall impact
of higher supplier bargaining power is that it lowers the overall profitability of Catalog & Mail
Order Houses.

How QVC Group can tackle Bargaining Power of the Suppliers

By building efficient supply chain with multiple suppliers.
By experimenting with product designs using different materials so that if the prices go
up of one raw material then company can shift to another.
Developing dedicated suppliers whose business depends upon the firm. One of the
lessons QVC Group can learn from Wal-Mart and Nike is how these companies developed third
party manufacturers whose business solely depends on them thus creating a scenario where these
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third party manufacturers have significantly less bargaining power compare to Wal-Mart and
Nike.
Bargaining Power of Buyers
Buyers are often a demanding lot. They want to buy the best offerings available by
paying the minimum price as possible. This put pressure on QVC Group profitability in the long
run. The smaller and more powerful the customer base is of QVC Group the higher the
bargaining power of the customers and higher their ability to seek increasing discounts and
offers.

How QVC Group can tackle the Bargaining Power of Buyers

By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its
sales and production process.
By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if QVC Group keep on coming up with new products then it can limit the
bargaining power of buyers.
New products will also reduce the defection of existing customers of QVC Group to its
competitors.
Threats of Substitute Products or Services
When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example services like Dropbox and Google Drive are substitute to
storage hardware drives. The threat of a substitute product or service is high if it offers a value
proposition that is uniquely different from present offerings of the industry.
How QVC Group can tackle the Treat of Substitute Products / Services
By being service oriented rather than just product oriented.
By understanding the core need of the customer rather than what the customer is buying.
By increasing the switching cost for the customers.
Rivalry among the Existing Competitors
If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. QVC Group operates in a very
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competitive Catalog & Mail Order Houses industry. This competition does take toll on the
overall long term profitability of the organization.

How QVC Group can tackle Intense Rivalry among the Existing Competitors in Catalog
& Mail Order Houses industry
By building a sustainable differentiation
By building scale so that it can compete better
Collaborating with competitors to increase the market size rather than just competing for
small market.
Implications of Porter Five Forces on QVC Group
By analyzing all the five competitive forces QVC Group strategists can gain a complete
picture of what impacts the profitability of the organization in Catalog & Mail Order Houses
industry. They can identify game changing trends early on and can swiftly respond to exploit the
emerging opportunity. By understanding the Porter Five Forces in great detail QVC Group ‘s
managers can shape those forces in their favor.

Value Chain Analysis

There are a number of reasons why the virtual appointments are the best to buy from a
marketing perspective. Let us enumerate a few: They enable a customer to interact with live
representatives, who are face-to-face with them; they are given the opportunity to see and
compare products and prices; they can schedule and book appointments and view product
catalogs; they can make purchase decisions without leaving the comfort of their homes; and they
can get the best deals from the store, as they get right to the point updates about sales and
discounts offered by the QVC stores. These all are made possible through the latest internet
technology used by QVC to enable appointment booking and live shopping. Here’s how it
works:

When a customer calls up the QVC customer service centre and enquires about the latest
offers and discount coupons, the customer service representative enters the call details into the
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QVC reservation system. This system includes details of the customer’s name, address, contact
information, phone numbers and even their shopping preferences. After entering all this data into
the reservation system, the system then recommends an ideal QVC store that can accommodate
the customer’s preferences.
The reservation system ensures that customers are able to experience a comfortable
shopping experience. It has been found that over 70% of QVC stores have employed live
shopping options. Live shopping provides customers the opportunity to actually interact with the
products they wish to purchase. This interaction gives them the opportunity to test and try out the
product before buying.

QVC also allows its stores to be open for a certain number of hours during the week. The
times specified are on a rolling basis, hence enabling customers to come back to their favorite
stores at any time they wish. Businesses like McDonald’s and Dunkin’ Donuts have successfully
used this feature to increase business. This also allows customers to avoid having to travel far
just to buy the food they want to eat. As a result, both the customer and the business are
benefitted.

By implementing these new features, QVC has increased its customer base and revenue.
This is the main reason why the network is experiencing double digit growth in the market share.
In fact, it is the only network in the entire world that has such a high penetration rate in
comparison to other TV channels. In the coming years, as we move into a new era of digital
television, it is expected that QVC will slowly be replacing cable TV. But for now, at least, it has
already surpassed the competition.
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