Operations Management (TQM)

“O Shopping”

Amatus, Alexine Nicole D.

Bacaraman, Jamaika A.

Camo, Rhona Mae A.

Garcia Rhonielyn Angel L.

Macalalad Jebbsenn D.

Solis, Ysabella Rane D.

Talvo, Daniel T.

Submitted to

Mr. John Vincent Legaspi

2025
 Chapter I

I. Operation Aspect

In its operation as a joint venture between ABS-CBN Corporation and CJ ENM of South Korea,

O Shopping Philippines has closed down operations in 2020 because of the adverse effects of the

COVID-19 pandemic on the business. The operations of the company were, to a great extent, dependent

on home shopping through television and a cash-on-delivery (COD) payment system, unsustainable when

disruptions in supply chains led to delayed product delivery and man-power limitations in warehouses

and call centers due to lockdown measures. Moreover, the shuttering of ABS-CBN's broadcast franchise

curtailed the audience reach for O Shopping, while online shopping platforms like Shopee and Lazada

invaded the quicker, more digital, and app-based transaction models of consumer behavior. Combined

with fixed overhead costs, inefficiencies in operations were leading to losses in customer satisfaction and

growing financial losses. Ultimately, while the pandemic had a hand in luring O Shopping into

bankruptcy and closure, a less-collaborative operational model and a lack of transformation into the

digital were the leading factors.

II. Marketing Aspect

O Shopping Philippines used TV infomercials to promote its products. These ads were shown on

ABS-CBN and cable channels. The product demos showed how items worked and how to order them

easily. This made shopping simple and trusted by many Filipino families who liked watching TV more

than using the internet.O Shopping became popular because of its strong marketing. People saw the

products on TV and felt confident to buy them. But in 2020, ABS-CBN stopped airing because of

franchise problems. This was a big problem for O Shopping because they lost their main way to

[Link] COVID-19 pandemic made things worse. Factories slowed down, and people had less

money to spend. O Shopping had trouble moving to online platforms and using new technology. Because
of this, fewer people saw their products, and sales went down. In the end, O Shopping stopped its

operations in 2020.

III. Financial Aspect

The capital side of O Shopping Philippines was established on a joint venture among ABS-CBN

Corporation and CJ ENM of South Korea. They invested a lot of capital in television content production,

advertisement, logistics, and product inventory. The firm generated revenues mainly from selling

products via its television programs and website, and brand promotions and advertisements. However, it

was costly to run based on expenditures such as buying products, shipping, laborers' salaries, and TV

commercials. It initially thrived with ABS-CBN's wide media reach and advertising as well as the latest

trend of home shopping but saw its revenues drop when online shopping platforms like Shopee and

Lazada pulled ahead. This worsened after ABS-CBN lost its franchise and the COVID-19 pandemic hit,

which led to O Shopping's shutdown in 2020

IV. Facilities

The operations of OShopping were engineered to accommodate an end-to-end home-shopping

business model from television programming and online sales to call center support processes,

warehousing, and logistics. Its principal corporate office was situated at the 9th floor of The Avecshares

Center in Bonifacio Global City, Taguig, Metro Manila the Philippines' main business district. The

company operated a 24-hour, customer service call center with up to 60 representatives taking orders and

answering questions seven days per week. This made it possible for customers to order purchases from

the comfort of their home, whether morning or night. OShopping also had warehousing and logistics

includes over 1,300 products under its assortment in categories including home and living, health and

beauty, fitness and electronics. They had next-day delivery available in Metro Manila and about five days

for the provinces.

O Shopping was a 24/7 home TV shopping service in the Philippines, which markets products

such as home appliances, kitchenware, electronics and gadgets throughout the country. A joint venture

between ABS-CBN Corporation and CJ ENM in South Korea, it demonstrated products in an

infomercial-style but customers viewed products before they buy. The list of its products ranged from

domestic appliances, cookware and fitness equipment to beauty and personal care products as well as

fashion accessories, jewellery, gadgets. O Shopping offered convenience such as cash-on-delivery

payment, easy 24/7 sales on the phone and over the web and nationwide delivery. This instant

gratification of online shopping, plus seeing live product demos, was a hit for many Filipino homes.

However O Shopping, following financial difficulties and the effects of the COVID-19 pandemic ceased

operations in 2020.

VI. Customer Satisfaction

Customer satisfaction in O Shopping varies with ups and downs depending upon the customer's

views. The ordering process and delivery time are the key factors that the majority of the customers

appreciate about the company. Some clients trust the brand more as they got products that were as good

as shown in ads. Nonetheless, some customers argued that the advertisements were misleading and that

the actual products were of worse quality than what was shown. Defective items and poor product quality

are other issues that some customers have reported and for which they were frustrated. Slow refunds,

unresponsive customer service, and unclear return policies were also the reasons for some customer

complaints. Some shoppers were disappointed due to the high delivery fees and hidden charges. On the

other hand, a significant number of customers still liked the discounts and bundle offers O Shopping

provides, among the problems. The product demonstrations were also a great help for the buyers to

understand the products better. Providing more clarity about the products, taking care of the product
quality, and providing better after-sales service are the ways through which O Shopping can enhance

customer satisfaction.

From shopping to aid and fun for many Filipino families. Some customers liked to watch the

product demos on TV because they could understand how the item worked before they even made their

purchases. Ordering was very easy and they deliver nationwide. Most buyers are pleased with the easy

payment, quick delivery service, and trusted brand. They live demonstrations of trust-building for older

people appreciating shopping from a distance through television rather than online shopping. But in 2020,

ABS-CBN closed its operations, and O Shopping lost its most important means of contacting customers.

In fact, due to the popularity of shopping on the internet among more people because of the pandemic, O

Shopping had big challenges in going online. Some customers received deliveries but not updates, which

led to unhappiness. Before, shopping with O Shopping made most of its customers happy. Now, however,

changes in media and habit-determined shopping methods make it difficult to keep pace. Ultimately, O

Shopping ceased operations in 2020.

Cigaral, I. N. (2020, July 8). ABS-CBN’s O Shopping to shut down this year. Philippine Star.
[Link]

Euromonitor International. (2020). Retail in the Philippines.

Ardent Communications. (2020). The 3 Waves: Rebuilding retail after the pandemic.
[Link]

Caña, P. J. (2020, July �. ABS-CBN also shutting down its home shopping affiliate. Esquire Philippines.
[Link]
20200708

Cigaral, I. N. (2020, July 9). ABS-CBN, Korean partner to stop O-Shopping this year. [Link]..
[Link]

ACJ o SHOPPING CORPORATION Careers, company profile, news & articles | [Link]. (n.d.).
Recruitday. [Link]

Wiki, C. T. T. P. (n.d.). O shopping. TV Philippines Wiki. [Link]