Analyzing the Impacts of E-Commerce Strategy on Tesco's Business Performance

This report analyzes the impacts of e-commerce strategy on Tesco's business performance, including benefits to suppliers, buyers, and customers.

Running head: E-COMMERCE SYSTEM
E-Commerce System
[Name of the Student]
[Name of the University]
[Author note]

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Research question:
Does the e-business strategies of Tesco helps in innovate the service operations and how the
e-business strategy would be helping in increasing the level of profits of the organization?
The questions for the research has been formulated for the purpose of measuring
effectiveness which the e-business strategies are having and have been adopted by the
organization Tesco along with analyzing the impacts which it would have upon the profits of the
organization. E-business strategies are mainly seen to be consisting of different kind of complex
technologies and well as tools which are having the need of a reliable website along with many
other which are generally required for having a proper maintenance. Additionally the analysis
along with the illustration of the question stated above would be helping in ensuring the fact that
if the customers of the organization Tesco are being satisfied with the usage of eth e-services that
are provided to them or not. Additionally there exists certain hidden facts as well related to the
question stated above like if the e-commerce strategy is feasible in terms of technology and
economy or not. Security is also considered to be one of the major aspect of the e-commerce
strategy in terms of providing a reliable as well as secure service for the customers. The
organization should also be associated with providing of a user-friendly website which is to be
strengthened by making use of advance security measures, identification of loopholes of the
organization would be helping in identification of the areas which requires improvements.
Higher customer satisfaction is associated with helping in maximizing the annual profits of the
organization which in turn is responsible for being crucial for the growth of the entire
organization.

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Research methodology:
Research methodology is the technique which is associated with helping in solving the
question that is mentioned above by means of proper evaluation of the entire question. For doing
this the research would be associated with the usage of an inductive approach which is followed
by the process of collecting the secondary data along with quantitative data analysis techniques.
The inductive approach is also very helpful in the process of selecting the research tool which is
most appropriate along with helping in analyzing the data by making use of proper data analysis
techniques and for this reason the quantitative technique has been used. The Quantitative
analysis technique is associated with helping in recording of the data from a large number of
participants for the purpose of adding a clear as well as better description which are seen to be
related to the topic that has been selected. Additionally the quantitative data analysis technique is
associated with the usage of the statistical facts along with numerical data for the purpose of
extracting the information which are useful by conducting an analysis upon the e-commerce
strategies which are used by the retail business applications, this study would be conducted upon
the organization Tesco. For this reason we have been associated with selecting five staffs along
with 48 customers of the organization and amongst them a structured questionnaire would be
distributed so as to receive response. The responses would be measured and would be provided
with ranks 1 to 5. The 1st rank is associated with signifying strongly agree and 5th rank wound be
signifying strongly disagree.

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Management Report:
Introduction:
Businesses that are indulged with the usage of the E-commerce platforms are associated
with acting as the major reason lying behind the bringing of changes in the organizations
economy by having a positive growth. E-business has seen to have changed the ways in which
the business owners think along with providing them with newer opportunities so as to gain
competitive advantage.
This report is mainly associated with discussing about the analyzing the impacts of the e-
commerce strategy upon the business of business performance of one of the leading retail
business of the world namely TESCO (Akter & Wamba, 2016). The e-business integration is not
only associated with encouraging higher customer satisfaction but also enhances the
productivity. The e-business strategies of the organization Tesco is analyzed for the purpose of
measuring the effectiveness of the e-business strategies of Tesco.
Company background:
Tesco Plc. is an England based retailer of general merchandise and grocery which is also
one of the three top listed retail company in terms of the Profits and besides this Tesco is also
second largest in terms of the annual revenue. The vision of this organization is simple which
includes providing of best quality product at a cost which is reasonable for the customers.
Almost 66 operators are working for Tesco in UK and for this reason the major goal of the
organization includes ensuring the fact that each of the customer is having best experience upon
each visits. Reports depicts that the organization has earned around $116 billion by means of
operating through stores which is around 6243 existing in around 13 countries. However the

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competitors such as the Asda is having annual sales which is eight times greater than Tesco
along with Sainsbury which is holding eth second position in the global retail market (Yan et al.,
2016). The organization is having around 27% market share which is seen to be dominated by
the online as well as the offline grocery market. However, existence of these grocery stores are
associated with forcing Tesco in expanding by making use of the new as well as unique
opportunities. For this reason the organization had been associated with launching their first e-
commerce website known as the Tesco direct which is a platform consisting of more than 8000
products.
Analysis and Evaluation of the Existing E-Business Strategy of Tesco:
Significance of the E-Commerce strategies:

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According to Laudon and Traver (2018), all information system which are related to the
products along with its feature, or the price or any kind of discounts which is made can be
transmitted easily by making use of the EDI system which is having a significant advantage and
this is associated with including data transmission at a fast rate along with accuracy which is also
high, along with providing of complete information which are transmitted by electronic means
along with the enhancement of the communication flow inside an organization. The ordering of
the products has become much more economically feasible along with being easy because of the
transmission of the information by making use of electronic systems (Li & Karahanna, 2015).
One of the major advantage which is put forward because of the e-business adaptation is that it
helps in the streamlining of the entire process of procurement along with the standardization of
the trading procedures by usage of advance computerization. E-commerce implementation also
assists in eliminating any kind of errors or delays in the process of purchasing. Additionally the
organizations which are buying would also become capable of comparing the information of the
products which the other organization provides on the e-commerce platforms which in turn is
proven to be an efficient system responsible for matching the requirements of the customers in a
satisfactory manner (Kurnia et al., 2015). The decision making process is also improved by
adaptation of the e-business strategies along with the adaptation of the electronic information
sharing and web capabilities which are much more enhanced.
Analysis of the E-Business Strategy:
E-Business strategy is associated with including the strategies used for the purpose of
handling the operations of the business of the digital systems which are networked.
Organizational authorities of the organization Tesco had been associated with the usage of the
documentation and the codification activities in a form which is entirely digital. Additionally the

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electronic networks are associated with providing assistance in the process of managing the
information flow so as to provide business services of unique quality (Grbovic et al., 2015. This
is also associated with helping in the process of adaptation of the new technologies as well as
tools which are capable of changing the already existing services and the business models in a
exclusive manner. The e-commerce utilization is associated with providing of potential benefits
for Tesco like the reduction of the transactions along with the operational costs and many more
(Wang, Wang & Liu, 2016). Some of the top and primary reasons responsible for making Tesco
the reach the top of the list is associated with including the effective mixing of the different
strategies of e-commerce with the business applications.
The e-commerce platform is associated with helping organization in establishment of
direct relations with the customers by putting forward of various kind of services online along
with offering of new services. This particular type of relationship which is strong and exists with
the customers is associated with lowering the operational cost along with helping in development
of loyalty as well as providing of information which are authentic and valuable and are related to
each product to the customers (Leong et al., 2016). Tesco is associated with allowing of the users
in viewing the products along with the detailed features in a catalog which is colored. Besides
this the development of the computer is associated with including the deployment of the
information management system into the e-business strategies which are in turn associated with
bringing of significant positive impacts upon the process of industrial purchasing. Additionally
the facilities related to the e-commerce strategies are not only associated with helping in locating
the resources in a proper way but is also associated with helping in locating the resources in a
proper way but is also associated with helping in locating the products as well as the services
which are seen to be matching the requirements which are customized and are seen to be within a

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fixed price range (Zhao et al., 2015). Three of the primary operations conducted by the e-
business of Tesco includes the following:
Production process:
This is associated with including the procurement and the logistic operations along with
the replenishment and ordering of products as well as the dealing with the transactions and
control of the production. The business sellers are associated with the usage of the desktop
publishing web software development tool for the purpose of creating the commerce enabled
contents so as to make the products capable of flowing through the system so as to transact for
further operations (Cai et al., 2018). The data warehouse system is associated with including the
database application which is responsible for gathering of all the personal as well as the customer
related financial information so as to help the product in getting shipped and delivered in time.
Customer focused process:
This is mainly associated with including the processes related to marketing and
promotion of the products by making use of the internet. Tesco is associated with helping the
brands in promoting their brands in the social media platforms which is associated with helping
in drawing of more customers towards the organization (Rahayu & Day, 2015). Additionally the
employees are associated with presenting of the searches related to the retail analytic operations
by browsing the history of the customers for the purpose of analyzing the buying patterns and
needs of the customers, this in turn is associated with helping in meeting the requirements of the
customers along with the needs of the organization in a proper way.
CLUBCARD of Tesco:
The organization had been associated with integrating one of the best functional
strategies in the e-commerce platforms and this was done by launching of the Cludcard for the

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potential customers. Since the year of 1995 club card had been associated with helping in
keeping a track of the data of eth customers from the personal details to eth buying patterns.
For the purpose of meeting the needs the organization had been associated with
establishment of a predictive model by usage of the warehouse technology along with the logistic
system (Kim & Peterson, 2017). This predictive model of Tesco is associated with allowing the
stock controllers in gaining an access to forecasting the elevated sales. The customers who had
been associated with the usage of the Tesco services would be gaining 1 point if they are club
card holder for every dollar they spend so as to buy a product.
Benefits to Suppliers, Buyers, and Customers
The analysis of the online business model of Tesco helps in stating the fact the e-business
strategies of an organization is associated with helping in earning of the maximum profit by
means of providing benefits to the suppliers, buyers and to the customers.
Suppliers who are associated with helping in meeting the needs and requirements of the
business in a proper are capable of providing real-time data as well as information. Thin in turn
helps in enhancement of eth entire decision making process (Oliveira et al., 2017). Besides this
the economic interactive findings are associated with allowing the searching of similar products
in the other organizations so as to make the process of bargaining become more easy, the
suppliers are also allowed to make searches for certain products along with trying to provide
information which are relevant for the buyers of to make the decisions impactful.
Usage of the flexible as well as reliable e-commerce platform of Tesco helps the users in
viewing the products range along with the features which are provided by other similar
organizations along with helping in examining the requests related to price modification for the
products which has been ordered (Falk & Hagsten, 2015). The e-business platform is associated

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with providing of information related to the product by usage of the buying guides and electronic
broachers which are associated with acting as a marketing channel which is effective for
reaching out eth customers who are globally located. Usage of the electronic data interchange the
system allowing the buyers in getting an access to the information of the goods and the services
from anywhere in the world.
Challenges Faced By The Organization
Technical Issues:
Security acts as the one of the highest concern for any e-commerce platform.in case if
security mechanisms such as the firewall, intrusion detection system, and many more are absent
then it can lead to hacking or loss of important data of the users which are stored in the database
along with the crucial data of the organization, DDOs or the SQL injection attack acts as some of
the major blocks for the distribution channel and this happens by injection of the malicious
viruses in the systems (Chen et al., 2015). These types of attacks are generally responsible for
halting of the authentic users in using the services provided online by the organization. Besides
this the hackers are also associated with stealing of the customer related information which are
confidential.
Societal Issues:
The IT infrastructure which is required for implementing the e-commerce implementation
is not at all cost effective. Advanced technologies are having the need of running the e-
commerce operations in a smooth manner which is responsible for the increased operational as
well as the business cost (Liu et al., 2016). Additionally there is a requirement of skilled
personalities for handle the new system by having higher reliability along with increased

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overhead cost of Tesco. This in turn is responsible for overlooking of the customers’ issues
which initially makes the problems unsolved.
Recommendations
Enhancement of Security:
Tesco should necessarily be associated with eth adaptation of the advanced security
application tools for the purpose of making the organizational as well as the customers'
information get protected from any kind of unauthorized access. The security tools are to be
installed in between the servers of the e-commerce and internet for the purpose of monitoring
each data packets which are coming in and going out before they enter or leave the main system.
Additionally the usage of the digital signature technique would be helping in providing of
protection to the system from any kind of malicious attacks.
Training and Education:
It is also recommended to conduct Inductive training for the employees so as to help
them in understand the new e-business strategies along its usage for the purpose of gaining
higher attraction and satisfaction of the customers this would be helping employees in optimizing
the problems of the customers by making use of effective ticketing solutions.
Central Technology and System:
IT is recommended to use a centralized system rather than using the systems in a
different ways for each of the particular technology, which would be helping in integrating the
management system so as to manage the orders, system for dispatching, system for tracking and
system associated with providing customer support altogether. This type of integration of

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multiple systems would be helping in seamless synchronization of the different information
which are related to products, services, and customers throughout the organization.
Conclusion
Analysis of the e-business strategy of TESCO helps in concluding to the fact that it
would be associated with enhancing the operations of the business by having a significant
growth. Besides this the existence of the reliable along with enhanced procurement operations
and user-friendly website is associated with helping in retention of customers all around the
world. Besides the launching of the customer centric approach is associated with helping in
maintenance of the customer loyalty as well as helping in drawing of more customers by having
maximized organizational profits. However it is seen that the implementation is having certain
limitations and for that reason it is necessary for reshaping the model e-commerce which is
existing so as to provide benefits which are potential along with opportunities for the customers
by maintenance of the needs of the customers with highest priority.

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