Case Study
Assignment 2
Q1: Analyze the environment in which tele-shopping was attempted.
Ans1: First let us know what is teleshopping - "The basic concept of telemarketing is that you should be offering what is not available in the retail market. With the growing popularity of satellite and cable television in the late 1990s, changes in lifestyle and a general improvement in the standard of living, teleshopping picked up momentum. By 2001, the total teleshopping network business in the world amounted to over $ 5. By 2000, the teleshopping market in the US was valued at around $2 billion. This becomes a lifestyle moment as it starts to gain its popularity from west towards east.
Thus the environment aspect and way used by companies to grow this business is mentioned below in detail but in country like India, where the development is just started at that period and purchase power start increasing, this is not an easy business module as it restricted to elite segment linked highly with lifestyle but late with price and promotion correction, it got place in market. Now detail analysis of environment:
During the early 1990s, Indian laws prohibited customers to import products, without acquiring prior permission from the regulating authorities. These laws also restricted the repatriation of money (out of India), without the prior permission of the country's central bank, the Reserve Bank of India (RBI). This was a major reason for the evolution of teleshopping in India, unlike the US, where teleshopping evolved due to the changing societal norms. During the mid-1990s, Telebrands India, a 100% subsidiary of Telebrands Corp., pioneered the concept of teleshopping in India and soon grew into a leading teleshopping network in the country.
In mid-1995, TSN (another major US-based teleshopping network) and Asian Sky Shop (ASK), owned by the media giant - Zee also entered the market. The other major players in the Indian teleshopping market were TVC, TSNM and Star Warnaco.
Q1: Analyze the environment in which tele-shopping was attempted.
Ans1: First let us know what is teleshopping - "The basic concept of telemarketing is that you should be offering what is not available in the retail market. With the growing popularity of satellite and cable television in the late 1990s, changes in lifestyle and a general improvement in the standard of living, teleshopping picked up momentum. By 2001, the total teleshopping network business in the world amounted to over $ 5. By 2000, the teleshopping market in the US was valued at around $2 billion. This becomes a lifestyle moment as it starts to gain its popularity from west towards east.
Thus the environment aspect and way used by companies to grow this business is mentioned below in detail but in country like India, where the development is just started at that period and purchase power start increasing, this is not an easy business module as it restricted to elite segment linked highly with lifestyle but late with price and promotion correction, it got place in market. Now detail analysis of environment:
During the early 1990s, Indian laws prohibited customers to import products, without acquiring prior permission from the regulating authorities. These laws also restricted the repatriation of money (out of India), without the prior permission of the country's central bank, the Reserve Bank of India (RBI). This was a major reason for the evolution of teleshopping in India, unlike the US, where teleshopping evolved due to the changing societal norms. During the mid-1990s, Telebrands India, a 100% subsidiary of Telebrands Corp., pioneered the concept of teleshopping in India and soon grew into a leading teleshopping network in the country.
In mid-1995, TSN (another major US-based teleshopping network) and Asian Sky Shop (ASK), owned by the media giant - Zee also entered the market. The other major players in the Indian teleshopping market were TVC, TSNM and Star Warnaco.