Class Case study presentation QVC

Class Case study presentation QVC

• 1.
  QVC Case Study FiifiAppiah.
• 2.
  Management Tool Picks. SWOT Analysis.  Value Chain Analysis.  Global Template  Getting QVC in China.  Financial Ratios.
• 3.
  SWOT Analysis:  Strength:  TV-Multimedia.  Product Showcase.  Weakness:  Not Watching TV/Channel  Live i.e. No product reruns.  Opportunities:  Internet Retail.  Phone apps.  Threats:  Online TV streaming.
• 4.
  Value-Chain Analysis  InboundLogistics:  Warehousing with Products ready to ship.  Live Inventory Update.  Outbound Logistics:  Ship orders within 48hrs.  Marketing & Sales:  Celebrity appearances.
• 5.
  Value Chain Analysis(cont.)  Service.  24hr Customer Phone Service  Unconditional 30day money back guarantee.  Human Resource Management:  Extremely Selective Recruiting (1/1000).  Procurement:  Stringent product selection.  Product testing.
• 6.
  Global Template. Getting into
• 7.
  Getting QVC inChina  Alternatives to going into China:  Merger & Acquisition. Or Newly Introduce QVC.  Demand Conditions: Television Internet 287 TV channels 450 million Web users 370 million TV households 800m Mobile phone users  Firm Rivalry:  HSN already in China.  ACRON.
• 8.
  Getting QVC inChina. (cont.)  Opportunity for lower raw materials:  Made In China.  Revenue Opportunities:  Increasing Per-Capita & rising affluence.  Manage Risk:  Currcency (Yen).  Political:
• 9.
  Our advice: AcquireACRON  Why acquire?  Multi-platform marketing  ACRON owns several Website and TV Stations.  Has an existing consumer base.  Trades on NSE as a mid-sized Company. i.e. SEC regulated.  Why not Ground Up Dev’t.  Too costly.  Media Bureaucracy.
• 10.
  However,  Spoiler Alert:  HSN was in China on June 25th 2000.  HSN Acquired TVSN  (Largest Home shopping Channel in China.)  Liberty Media Aquired 32%
• 11.
  However: Owns 32% Owns 100%
• 12.
  Financials 8 6 4 Revenue 2 0 1989 1992 1995 1998 2001 2004 2006 2007 2008 2010 Financial Analysis - refer to handout
• 13.
  Financial Analysis handout