1. Based on the Case Study and Your Own Research on Competitors, Summarize the Strategic Approaches Which Have Helped Tesco.Com Achieve Success Online.
1. BASED ON THE CASE STUDY AND YOUR OWN RESEARCH ON COMPETITORS, SUMMARIZE THE STRATEGIC APPROACHES WHICH HAVE HELPED TESCO.COM ACHIEVE SUCCESS ONLINE.
Strategic decisions are ones that are aimed at differentiating an organization from its competitors in a way that is sustainable in the future. (Porter, 2002) Porter strongly advocates that decisions in business can be classified as strategic if they involve some innovation and difference that results in sustainable advantage. According to Porter, (2002) operational effectiveness and efficiency are the key elements of success in any organization. A company can outperform its rivals or competitors in the market only with superior management and efficient control creating a difference from the others which eventually attracts customers. Porter defines operational effectiveness as performance of similar activities as its rivals but better than them. A company can perform its rivals only if it can operate in different ways which are not in practice as seen in Tesco.com.
After the establishment of various virtual supermarkets, a new phase began when established brick and mortar supermarkets entered the online grocery shopping arena by adopting a ‘click and mortar’ strategy. In the UK there are Tesco, Sainsbury’s, Asda, and Waitrose.com. These players, by combining the strength of traditional retailing with Internet shopping, have achieved rapid growth.
The SWOT analysis of Tesco.com reveals that it is most powerful retail brand, reputation for money, value, commitment, and provides wide range of products. It is growing at a brisk pace with expanding its horizon to other parts of world through acquisition and merger. Tesco.com has good opportunities in markets of European and Asia and focuses on acquiring the market through acquisition of smaller stores and merger or partnering with leaders in the specific markets. Also the success factors of Tesco reveals that Tesco had formulated its
Strategic decisions are ones that are aimed at differentiating an organization from its competitors in a way that is sustainable in the future. (Porter, 2002) Porter strongly advocates that decisions in business can be classified as strategic if they involve some innovation and difference that results in sustainable advantage. According to Porter, (2002) operational effectiveness and efficiency are the key elements of success in any organization. A company can outperform its rivals or competitors in the market only with superior management and efficient control creating a difference from the others which eventually attracts customers. Porter defines operational effectiveness as performance of similar activities as its rivals but better than them. A company can perform its rivals only if it can operate in different ways which are not in practice as seen in Tesco.com.
After the establishment of various virtual supermarkets, a new phase began when established brick and mortar supermarkets entered the online grocery shopping arena by adopting a ‘click and mortar’ strategy. In the UK there are Tesco, Sainsbury’s, Asda, and Waitrose.com. These players, by combining the strength of traditional retailing with Internet shopping, have achieved rapid growth.
The SWOT analysis of Tesco.com reveals that it is most powerful retail brand, reputation for money, value, commitment, and provides wide range of products. It is growing at a brisk pace with expanding its horizon to other parts of world through acquisition and merger. Tesco.com has good opportunities in markets of European and Asia and focuses on acquiring the market through acquisition of smaller stores and merger or partnering with leaders in the specific markets. Also the success factors of Tesco reveals that Tesco had formulated its
References: Tomlinson, H. & Evans, R. (2010), ‘Tesco stocks up on inside knowledge of shoppers’ lives’, Guardian, September 20, 2010. http://www.guardian.co.uk/business/2005/sep/20/freedomofinformation.supermarkets [accessed 07/07/2010] Turban, E., Rainer, R.K http://www.ivoryresearch.com/sample5.php Irene Yousept, Feng Li, Online Supermarkets: Emerging Strategies And Business Models In The UK, Source, 17th Bled eCommerce Conference eGlobal, Bled, Slovenia, June 21 - 23, 2004