QVC Strategic Management Essay Example

and more interactive.

QVC has managed to achieve a customer satisfaction rating of 95 percent through this system of customer relations management. Paul Day, the logistics manager for the distribution center ensured fast delivery to their customers. QVC also provides a credit program to allow customers to pay for goods over a period of several months. Everything else it sells is also backed by a 30-day unconditional money-back guarantee. 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.

The first of many acquisitions begin in 1988 when Segel acquired the Diamonique Corporation, a manufacturer of simulated gemstones and jewelry. Two years later, QVC expanded by acquiring one of its competitors, the Cable Value Network Shopping channel.QVC is always looking for ways to build on their success, attract new viewers, and make the QVC experience even better for longtime customers. QVC is also entering new markets by offering its shopping channel to customers outside North America. QVC has expanded to UK, Germany, and Japan, getting over seventy million new customers in three countries.

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. 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.

Although QVC is one of the largest electronic retailers in the U.S., there is still a lot of room to grow. There is only about two percent to three percent of its television viewers currently purchasing at any given time. QVC began as a television home shopping channel and has expanded to include other electronic retailing avenues including the worldwide web, iQVC. 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. Further, the 2006 Jupiter forecast suggests that for the period between 2006 and 2010, offline purchases supported by online searching behavior will grow faster than actual online purchases. The QVC shopping network will only become more pronounced in the future, making it easier for customers to act on what they see.