The document discusses QVC's business model and strategies for expanding into China. It analyzes QVC's strengths, weaknesses, opportunities, and threats through a SWOT analysis and value chain analysis. Finally, it recommends that QVC acquire an existing Chinese company called ACRON in order to leverage its existing media platforms and consumer base to enter the Chinese market.

1. QVC
Case Study
Fiifi Appiah.

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
 Inbound Logistics:
 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 in China
 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 in China. (cont.)
 Opportunity for lower raw materials:
 Made In China.
 Revenue Opportunities:
 Increasing Per-Capita & rising affluence.
 Manage Risk:
 Currcency (Yen).
 Political:

9. Our advice: Acquire ACRON
 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