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Case Study: the Business Strategies of Qvc

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Case Study: The Business Strategies of QVC

Group 2:

Michael Kenlan

Karen Maxwell

Brian McKearney

Tara Murphy

Zach Smith

MIE 480, Spring 2010

Dr. Washington

Abstract

John Segal founded QVC in West Chester, Pennsylvania in June of 1986, two years behind the launch of its predecessor, the Home Shopping Network. Despite this later emergence onto the cable scene, QVC surpassed its competitor quickly and has maintained a dominant position in the television-retail industry ever since. Never relinquishing its strong commitment to quality, value, and convenience, the company has strategically gained consumer confidence, brand loyalty, and a competitive advantage in the market. Today, QVC has shipped over a billion packages to customers worldwide, and generates an estimated $_________ in annual sales.

There are many reasons that led QVC to become the industry leader in televised shopping. Entering the market in the shadow of The Home Shopping Network actually proved to be advantageous to the new company. The founding management of QVC was wise in examining its competitor’s strengths and weaknesses, and learning from these mistakes. QVC set out to break the existing mold and capture a larger audience with quality products. Another wise decision on the part of leadership was to employ experienced TV producers with expertise in the field which resulted in a professional and well-produced show from the start. Acknowledging his own talent gap and then taking steps to fill this need accordingly granted John Segal a greater probability of success. Unlike the perceived image of many QVC’s competitors, the company is avidly committed to three core values—quality, value, and convenience. It is upon these core principles that QVC has focused its efforts, making...

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