Strategic and Economic Analysis of E-Grocery System in Tesco and Sainsbury
ABSTRACT
Online shopping and home delivery systems become most famous in recent decades. Online grocers have been testing various business models with altering results. This research study is carried out in two main grocers of the UK (Tesco and Sainsbury). This research study conducted Case study and historical data, and meta-analysis to identify current strategies and business models of e-grocery which contributed to their success. Both companies' management styles, expansions strategy, market selections strategy, order-processing and picking methods, home delivery methods, website design and different strategies for customer relationship management are explored and evidenced the successful factors. The findings reveal that online grocery knowledge and experience in grocery business play a significant role in E-grocery success. Using slow and steady expansion with careful investment helps online grocers to stay in game. The In-store picking method is more profitable and suitable for e-grocery business. Understanding customers, wants and needs will provide tremendous opportunity for business expansion.
CHAPTER 1
1.1. INTRODUCTION: -
This chapter provides general background, problem statement, purpose of study, research objectives, major research questions and structure of dissertation.
1.2. General background:-
From many decades many groceries and also many manufacturing companies are providing delivery services to customers. Home delivery of household goods is not a recent concept in grocery retailing sector. However, until 1990s e-grocery was not potentially recognisable business channel, when grocers introduced internet based online ordering facility it revolutionised whole grocery industry (Papiernik, 2000).
Nowadays, not only pure-play industries offer e-grocery services but also many more supermarkets offering