QVC Inc Analysis of the company. Strategic business plan

2051 WordsJul 18, 20079 Pages
QVC EXECUTIVE SUMMARY: Since the company was founded in 1986 QVC Inc. has relied on strategy and innovation to secure a commanding role in the service retail industry. Over the years QVC has forged a solid reputation as being both a model of efficiency and profitability throughout the business world (Biesada 01). The challenge that the company faces is determining a way to remain competitive in a changing economic climate. The business model must adapt to changes in society and technology. The strategic options of the firm are largely in response and correlated to the external environmental factors at play. Growth and competitiveness will be sustained through the following steps: Global expansion of retail services, expanding the…show more content…
Suppliers in the industry seek buyers who can move a lot of merchandise in a short period of time. The threat of substitution is a big deal in this industry. Most retail stores carry the same types of products with little differentiation. This makes it difficult for companies in this industry to keep customers coming back. This places an emphasis on the need to build a good reputation with customers. The home shopping industry is dominated by two main companies. The home shopping network is QVC's main competitor in this segment. In financial analysis, QVC outperforms HSN in almost every aspect. They have a better current ratio, long term solvency, inventory turnover rate, return on assets, profit margin, and much higher net income (Reuters). ANALYSIS OF THE INTERNAL ENVIRONMENT: The external environment will allow for the company to grow and remain competitive through the undertaking of a strategic plan. The internal logistics for QVC can be analyzed to develop strategy. The Infrastructure that QVC uses to operate is significant to their success. They require high-volume, computer-driven transactional telephone systems; computers that contain stock keeping inventory along with management information and customer data; production facilities for live programming. The logistics systems required for home shopping relate to four areas. They are product procurement, order

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