Question: Based on the case study and your own research on competitors, summarise the strategic approaches which have helped Tesco.com achieve success online. Context Tesco, well

Based on the case study and your own research on competitors, summarise the strategic approaches which have helped Tesco.com achieve success online.

Context Tesco, well known as Britain’s leading food retail group with a presence also in Europe and Asia has also been a pioneer online. By September 2005 online sales in the first half of the year were £401 million, a 31% year-on-year increase, and profit increased by 37% to £21 million.
Tesco.com now receives 170,000 orders each week. Soon it should reach an annual turnover of £1 billion online and is generally recognised as the world’s largest online grocer.
Product ranges The Tesco.com site acts as a portal to most of Tesco’s products, including various non-food ranges (for example, books, DVDs and electrical items under the ‘Extra’
banner), Tesco Personal Finance and the telecoms businesses, as well as services offered in partnership with specialist companies, such as dieting clubs, flights and holidays, music downloads, gas, electricity and DVD rentals. It does not currently sell clothing online but in May 2005 it introduced a clothing web site (www.clothing attesco.com), initially to showcase Tesco’s clothing brands and link customers to their nearest store with this range.
Competitors Tesco currently leads the UK’s other leading grocery retailers in terms of market share. This pattern is repeated online. The compilation below is from Hitwise (2005) and the figures in brackets show market share for traditional offline retail formats from the Taylor Nelson Softres Super Panel (see http://superpanel.tns-global.com):
1 Tesco Superstore, 27.28% (29% of retail trade)
2 ASDA, 13.36%
3 ASDA @t Home, 10.13% (17.1%)
4 Sainsbury’s, 8.42%
5 Tesco Wine Warehouse, 8.19%
6 Sainsbury’s to You, 5.86% (15.9%)
7 Waitrose.com, 3.42% (3.6%)
8 Ocado, 3.32% (owned by Waitrose, 3.6%)
9 Lidl, 2.49% (1.8%)
10 ALDI – UK, 2.10% (2.3%)

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