Abstract

The growing use of Internet in United States provides a developing prospect for online market place. If E-marketers know the factors affecting online United States buyers' behavior, and the relationships between these factors and the type of online buyers, then they can further develop their marketing strategies to convert potential customers into active ones, while retaining existent online customers. This paper further discuses the financial performance of the House Shopping Network, the ratio analysis calculates the strength of the firm. The free cash flow calculates the payments and receipts of the house Shopping Network.

Table of Content

Abstracti

About the company1

Product categories1

Technology used by home shopping Network2

Call center2

Interactive Voice Response2

Computer systems2

Competitors3

Market share3

Free Cash Flow for Home Shopping Network4

Cost of capital for Home shopping Network7

Financial Analysis8

The ratio analysis9

Profitability Ratios9

Liquidity Ratio10

Debt Management10

Asset Management11

Book Value for Home shopping Network11

Other related information11

B2c/C2c Online Marketplace11

Online Buying Behaviour of Consumers12

Process of Online Buying13

Works Cited16

Home Shopping Network

About the company

Home Shopping Network has its roots from a radio station managed by Paxson. In 1977, due to an advertiser's liquidity problem, the company was paid in can openers. Left with having to raise the funds, on-air personality Bob Circosta went on the radio and sold the can openers for $9.95 each. The can openers sold out, and an industry was born. Circosta later became the new network's first ever home shopping host and would eventually sell 75,000 different products in over 20,000 hours of live, on-air television (Baloglu, 53).

Product categories

Personalized gifts

Jewelry

Electronics

For Home Decoration

Outdoors

Beauty

Crafts & Sewing

Collectibles

Health & Fitness

Kitchen & Dining

Toys

Fashion

NFL items

Technology used by home shopping Network

Call center

HSN started life with a standard rotary phone system that concentrated calls to the front of the queue. This corresponded to the front row of order takers in the HSN Studio at the Levitz Center (so named as the location was a former Levitz furniture store) in Clearwater.

Interactive Voice Response

HSN was an early adopter of an Interactive Voice Response (IVR) system for order entry. This system allowed customers to place orders through the IVR rather than an agent. The original IVR was a product supplied by Precision Software, Incorporated (PSi) of St. Paul, Minnesota. The product made use of an Intel PC chassis and Dialogic boards for call termination (Banker, 394).

Computer systems

The original computer system used for the local Home Shopping Channel was an IBM System/36. Once HSN decided to go national, a new mainframe called the "A Series" from Burroughs (now Unisys) was used. This new system, named the A3, went live on July 1, 1985 and by April 1986, HSN was on an A15j (the largest commercial business processor available at the time).

Competitors

Following are the major competitors which are giving enough competition in the business filled.

ShopNBC

QVC

Jewelry Television

Market share

The following are the major competitors which have capture the major market share, the market share of such organizations shows that Home Shopping Network has the major market share among all competitors.

Competitors

Market Share

ShopNBC

20%

QVC

25%

Jewelry Television

19%

Home Shopping Network

36%

Free Cash Flow for Home Shopping Network

Free cash flow is cash flow available to the company after the financing of investment, which it considers ...