QVC Case Study

How did QVC grow into a successful company? QVC is always looking for ways to build on their success, attract new viewers, and make the QVC experience even better for longtime customers. Although QVC is one of the largest electronic retailers in the U. S. , there is still a lot of room to grow. QVC began as a television home shopping channel and has expanded to include other electronic retailing avenues including the worldwide web, QVC.
According to Jupiter Research, online business-to-consumer (B2C) retail revenues in the United States will continue to grow by a compound annual growth rate of 12% through 2010 to an estimated $144 billion. The mainstreaming of the Internet into the general population is fueling the growth in online shopping among many demographic groups and for many types of products and services. QVC also is committed to superior customer service; customers can have their questions answered by in-house service representatives with an average of seven years of QVC experience.
QVC has managed to achieve a customer satisfaction rating of 95 percent through this system of customer relations management. It is obvious that QVC is consistently proactive and continues to identify opportunities and well as threats in the external market. QVC utilizes resources and expands its capabilities thru acquisitions, partnerships and the deployment of aggressive marketing campaigns. QVC used the economic downturn as an opportunity to build a stronger, leaner, more financially sound and technology-rich company for the long-term. What strategy did QVC use, and how did it support this strategy?

QVC by their strategic objectives: Pursue a leading position, Achieve efficiency in operations, Search for profitable products, Expand the customer base, Position for future growth. QVC is always looking for ways to build on their success, attract new viewers, and make the QVC experience even better for longtime customers. At QVC, their focus is on quality products that surprise and delight and the buying staff searches the world for quality products. Each product must live up to viewers’ expectations of high standards by being unique, innovative, and an exceptional value.
Hundreds of thousands of new products are evaluated each year, but only a fraction become QVC items. They look for the freshest products and ideas, and enhance their on-air and online programming by making it more engaging and more interactive. What challenges does QVC face? How has it confronted them so far? Because the Web greatly enhances the users’ ability to search for products, the point of competition for QVC is the functionality of its website as it relates to the customers’ shopping experience in the online marketplace and the security of the purchase.
Understanding the online customer experience is critically important for managers to formulate a better marketing strategy and to design a more functional Web site that meets customers’ needs. What is QVC’s approach to strategic management? QVC strategies include innovation and growth with regular technological developments and aggressive marketing campaigns that keeps them in mind’s eye of the public. QVC has maintained their vision of quality, value and convenience throughout every aspect of their operation.

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