SWOT Analysis: QVC

Class: MG 316
QVC is a very successful cable shopping network compared to its competitors. Over-time, it has become very profitable as shown in Exhibit 1,with a higher profit margin in comparison to Home Shopping Network( HNS), QVC’s major competitor. QVC as the initials imply stands for quality, value and convenience. These three words communicate to all stakeholders the organization’s values, inspirations, mission and goals. However, the success of QVC does not only depend on those three promises, it greatly depends on various others factors which are presented in Exhibit 2. It is important to remember that QVC is selling different types of product from beauty items to sportswear. These products can be found in almost any stores either in
virtual or in a physical story; therefore, it is important for QVC to provide its viewers with more than order qualifier, it has to offer an order winner by adding value.
Actually, QVC has implemented different business innovation strategies that appear to work successful and help them pursuing a leading position, and achieve efficiency in operations.
One of the key successes is its source of innovation constant search for the best and unique product. As an examples, “The Quest for America’s Best”. This strategy of looking for the best product from American entrepreneurs in all the 50 cities is great because it gives QVC a competitive advantage over its competitors because QVC will be offering unique and innovative product that can only be found on their company
This in turn will allow them to charge a premium price that will maximize its profit and create wealth to its stockholders’
The idea to implement technology and expand its business is excellent. Expanding beyond TV cable shopping will allow them to give their customer more choice and at same time be advantageous over its competitors since it will offer more than one way for people to have access to its product. By implementing website where customers can search for product can help them in long-run. It is also important that QVC’s managers are thinking about developing a website because it can help them capture the
1. What key aspects of QVC’s approach to service differentiated their customer experience from that of their
competition?
QVC is a cable shopping network founded by Joseph Segel in 1986.
It has become one of the top TV-shopping networks by surpassing its major competitor HSN that in fact was in the market since 1982, (see Exhibit 1). QVC sold different products from beauty to sportswear. And it was particularly successful in selling apparel, compared with HSN, (see the Exhibit 2). QVC, as the initials imply stands for quality, value and convenience. These three words communicate to all stakeholders the organization’s values, inspirations, mission and goals. However, the success of QVC did not only depend on those three promises, it greatly depends on various others factors. QVC gave its customers the opportunity to purchase unique, well-known brand names and innovative products that were not always available elsewhere or products that had something unique to offer. They also ensured that customers would receive the best quality product at a competitive price. To offer its customers unique and quality products, QVC buying staff searched and selected the best products, and when the product were selected, they also performed a Quality Assurance to make sure customers were getting the best quality products with no
defects.
Furthermore, QVC provided customers with on air demonstration and enough information about the product that customers would not be able to receive in the stores.
QVC customers could have their questions answered by the representatives who were well trained individuals committed to delivering superior customer satisfaction. This satisfaction was also backed up with fast delivery, information on how to return merchandise and a 30-day money back guarantee with no additional charges.

2. What are QVC’s key drivers for presenting product information and attributes in a compelling way?
QVC managers knew that communicating or presenting the product information to its viewers was an important key to make viewers to buy the products, for this reason the host was someone credible, and someone who could sincerely communicate with the customers. QVC made sure the host was individual who was qualified and had prior experience as a school teacher, television news reporter, and radio announcer. Also, the host went through rigorous training before appearing on the air. Sometimes, QVC had guests who were the creators of the product to talk with viewers and host. By bringing guests that had particular knowledge about the product added value to the product, since customers were receiving extra information that only the person that created the product could provide and it was only provided on QVC. Also, sometimes viewers were invited to call to give their testimonials about the products.
3. How might QVC embrace new customer-facing technologies to remain competitive in today’s business world?
QVC is always looking for ways to build on their success, attract new viewers and make the experience of its long-time customers even better. As the Web is greatly enhancing the users’ ability to search for products the QVC has to build a user friendly website that is easy to navigate through with fast page loading, language options, effective search function, and quick shopping checkout. This website should give the customers the ability to compare and explore various products includes those product promoted on the air and others that were exclusive to iQVC. QVC has to make sure that the customers’ shopping experience, security on the online marketplace has the same standard as the TV experience. QVC could now implement mobile
Furthermore, I think that QVC should run a special promotion such as free shipping when customers buy a certain amount of items or when customers spend a certain amount of money. In addition, in order to retain customers and make customer come back to their website, QVC could offer promotions, such as free shipping for customers after their third purchase.