Case | HBS Case Collection | April 1995 (Revised April 1995)

Home Shopping Network, Inc. (Abridged)

by Timothy A. Luehrman

Abstract

Home Shopping Network invented the video home shopping industry. It had immediate success in both the product and capital markets, which quickly drew imitators. This case describes the situation as of January 1986, when the company must decide how to sustain successes in both markets. Students must discuss the proper valuation of the firm, proper financing strategy, possible future product lines, and how to deal with competition.

Keywords: Capital Markets; Financing and Loans; Supply and Industry; Product; Strategy; Competition; Valuation; Telecommunications Industry;

Citation:

Luehrman, Timothy A. "Home Shopping Network, Inc. (Abridged)." Harvard Business School Case 295-135, April 1995. (Revised April 1995.)