QVC Inc Analysis of the company. Strategic business plan

Essay by smonaco July 2007

download word file, 8 pages 4.7

Downloaded 138 times



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 capacity for online retailing, and attracting a wider consumer base. The answer to the dilemma is not which road to take but to instead invoke the correct formula of strategic actions and resources.

The strategy that prevailed was the most logical plan with a moderate level of risk to the company.


A sharp rise in the demand for electronic retail services has opened the gates for competitors of all sizes to try to grab a piece of the market share. The barriers to entry in the industry were essentially struck down with the rise of e-commerce, leaving anyone with a computer in a position to become a retailer and a vendor. Despite the inflow of competition, QVC was in a pretty good position to use experience and resources in the industry to capitalize on the opportunity. The establishment of the IQVC internet shopping center and well developed interactive television retail business were two steps in the right direction. Retail operations were extended to the UK, Japan, and Germany. The changing dynamics of the manufacturing have changed the profit margins of...