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E-Business - Tesco

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Introduction

10129103 E-Business Tesco is a massive multi-million pound company. It has been in existence since 1924, and are also the leading supermarket in the supermarket retailing world. From what started as a normal traditional shop, has now grown into a retail monster. As seen below: Diagram One 1 Tesco have many different types of stores. The oldest is traditional and offers free parking with a big choice in food. Tesco Metro is another type of store used in high streets for high street needs. Tesco express is combined with a petrol station. Finally there is Tesco extra. Tesco extra has items other than food. It also includes products such as dvd players and kettles etc. Diagram Two 2 A basic background to Tesco is Sir Jack Cohen founded it in 1924. The first store was opened in 1929, and the company was declared private limited company 1932. 1959 saw the first ever self service supermarket. The 1960's saw Tesco thrive but by mainly taking over other stores such as "Williamsons", by the end of the 1960's Tesco had a chain of 600 stores. Tesco's once main strategy was 'pile it high and sell it cheap'. In the 1970's- 1980's the need for such produce decreased and outsiders of the company were made to believe that the company would not be able to recover, as now the customers wanted quality. Tesco solved this problem by letting private owned brands enter shelves, and also smaller inadequate stores were closed down and bigger higher quality ones were opened. ...read more.

Middle

This is without the normal groceries and electrical products. By offering all these services and products Tesco are removing intermediaries, this is called disinter mediation. This is when an organisation which has direct access to end customer data, and they have advantage over competitors who use intermediaries. They deal directly with the customer. ADD FULL SERVICE PROVIDER ATOMIC E-BUSINESS SCHEMATIC MODEL- Tesco have made their own services. Tesco are dealing straight to the customer. They are saving money and time, and all round improves the customer satisfaction. No other Grocery retail business are following Tesco to the extent they have gone and the ground they have already in such a short period of time covered. Tesco are saving money, they are selling most of their services cheaper than other companies and there gaining the majorities of markets without the middleman. With all this activity going on in the business challenges and opportunities are arriving regularly. The main opportunity Tesco had was the gap in Internet market. They penetrated the market and as seen below have prospered. " Despite the gloom that has descended over some of online shopping's best and brightest, there is one big "e-tailer" whose star shines more fiercely than ever. The surprise is that this is no Silicon Valley digital hotshot, but a dull old British grocer." The Economist, February 2000.5 Diagram Three 6 Diagram three shows the internet sales and the online orders per week at Tesco.com. ...read more.

Conclusion

At the present time even though Tesco have 750,000 customers10 using their site for buying. They currently do not have a high percentage of regular users. Tesco have been putting a lot of money into putting computers in schools, and into Internet caf´┐Ż's in food areas of their stores. The reason behind Tesco doing this is for the future. If people are being taught at a young age (hence computer for schools vouchers) to use the internet. In terms of the older generation it lets them try the internet out, and there is more chance of them going home and purchasing the internet. People are attracted to internet by leaflets that are found by the tills in Tesco stores. It says "extra online.. More products, more choice" and has deals on the top of the leaflet advertising cheaper prices.11 The market is being opened up to people. In directness of this Tesco have to make there website user friendly. ADD WEBSITE USER FRIENDLY STUFF Club card holders etc. Evaluation of personal use on site 1 Peter N Child, "Taking Tesco global," Mckinsey Quarterly, 2002, Number 3. 2 www.ikc.icfai.org/main/padmini/tesco.PDF 3 www.thunderbird.edu/pdf/about_us/case_series/a07010011.pdf 4 http://www.computerweekly.com/Article123072.htm 5 http://www.economist.com/research/backgrounders/displaystory.cfm?Story_ID=S%26)80%25P1'%24%0A 6 www.ikc.icfai.org/main/padmini/tesco.PDF 7 Peter N Child, "Taking Tesco global," Mckinsey Quarterly, 2002, Number 3. 8 Paul Jackson- E-business and the workplace redesign, Tesco Case study 9 http://www.quickmba.com/strategy/value-chain/ 10 The Tesco.com experience: is success at hand?, Tesco case study, Albrecht Enders,2002 11 www.tesco.com, more products more choice leaflet, Tesco ( find in appendix) ...read more.

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