Prosperity and development of the global economy change the lifestyle and habits of modern people, transform the traditional physical channel into the trading pattern of virtual channel, among which “TV Shopping” accounts for the largest output value and develops most rapidly, and synchronously drive the development and business opportunities of related industries.This study selects K Company, a virtual TV channel supplier engaging in the markets of Europe and the United States, as the research subject, and adopts qualitative study method to explore K Company’s current operating conditions, business strategy, and management model.
K Company offers diverse channels to Europe and the United States, including virtual TV commercials, TV shopping, catalog mail order, internet, physical retail stores, department stores, etc. The main products can be divided into nine categories, namely, appliances, fitness, garden, home, kitchen, personal care products, tools, environmental protection and others. K Company built up its own production base and integrated upstream and downstream manufacturers in order to reduce production costs and achieved the closest connection and combination from production to sales end through the layout of channel as well as the operation and use of logistics and cash flow.
The main findings in the research are summarized as follows. The global prevalence of virtual channels drives the development of K Company. Since K Company grasps the advantages of diverse channels, its product marketing and advertising effectiveness can be continued to next channel thus creating another wave of sales achievement. Meanwhile, the presentation of integrated efficiency of supply chain as well as the use and coordination of strategies innovation let K Company grow and earn profit steadily. The main competitiveness of K company relies on its excellent business model to manage effective operation and adjust with the changing of environment. K Company possesses external environment advantage for the rise of virtual channels as well as inherent environmental advantage, such as diversified sales channels, the integration of supply chain, the enhancement of value chain, strengthened organization and execution, and product and service innovation strategies, trying to perform the whole strategies and building models, all of which are proven to be the key factors that make K Company’s channel markets continue to grow and earn profit steadily and maintain advantage competitiveness.