DEVELOPING E-BUSINESS STRATEGIES WITH EMERGING IT FOR TESCO Harvard Case Solution & Analysis

TITLE & ABSTRACT:

The entire case deals in changing the business model from Brick n Mortar towards online retailing. The entire case is about overhauling the overall business model in such a way that more focus is shifted towards the E- business.

Tesco is the third largest retailing company in the world ranking just after Walmart and Carrefour. The company has specialized in retailing grocery items over the period of time. In addition to this, the company has earned the confidence and satisfaction of its customers over the period of time by facilitating its customers with excellent quality products as well as exceptional customer care services.

The company started its online retailing program by developing a website named Tesco.com.The customers are required to place their orders online through websites of their desired products which are also recorder automatically by the system. The online order placed by the customer is then delivered to him through home delivery.

The company faced a number of issues when it moved towards online retailing, which could be resolved by implementing the recommended solutions efficiently and effectively.

INTRODUCTION

:The entire case deals about changing the business model from Brick n Mortar towards online retailing. The entire case is about overhauling the overall business model in such a way that more focus is shifted towards the E- business.

Implementing E business models within the entity or changing the business model from a conventional brick n mortar towards online retailing brings in a number of challenges as well as benefits for the organisation.

Furthermore, the case also provides various tactics to deal with the challenges which have arisen due to implementation of new models, efficiently and effectively. Moreover, the case also deals with a comprehensive study of the benefits that would be arrived by implementing such models.

The importance of this case is that the top management of the company implementing E commerce could analyse the risk and rewards associated with the implementation of such process thoroughly. Hence, this would further benefit the company to make their strategic decisions and strategies with respect to the subject matter efficiently and effectively.

BACKGROUND INFORMATION OF THE ORGANISATION:

Tesco is the third largest retailing company in the world, ranking just after Walmart and Carrefour. The company has specialized in retailing grocery items over the period of time. In addition to this, the company has earned the confidence and satisfaction of its customers over the period of time by facilitating its customers with excellent quality products as well as exceptional customer care services.This has further allowed the company to trail blaze the entire market by securing one of the leading positions in the entire market.

Tesco opened its first self-service super market in 1956 in a converted cinema. In its initial stage, Tesco pursued its rapid growth by making a number of acquisitions which includes 70 Williamson’s stores, 200 Harrow stores, 212 Irwin’s outlets and 97 Charles Phillips stores. Thus, due to such massive acquisitions during 1950’s to 1960’s, Tesco had become a chain of 600 stores by the end of 1960’s.

The company initially adopted the strategy of pile-it-high and sell-it-cheap which proved out to be unsuccessful.Later the company changed its business model towards Brick and Mortar business model, which allowed the company to bounce back and attain its overall growth.

Moreover, Tesco started expanding its business rapidly as well as it has also diversified its products line at a wide spread scale ranging from grocery product to non-grocery products. This has increased the overall growth of the company drastically and by the end of 2006, the company owned approximately 450,000 employees all around the world. In addition to this, in the financial year 2006, the overall group sales of the company increased by approximately 10.9% to 46 billion pounds.....................

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