Analyzing Tesco's Innovative Grocery Delivery Strategies: A Case Study

This case study examines Tesco's strategic response to the pressures of timely grocery delivery in the UK, focusing on the adoption of robots and drones. These technologies enable faster delivery over both short and long distances, enhanced by anti-theft software for security. The innovative approach benefits Tesco by expanding customer reach, increasing revenue, and improving inventory liquidity. Customers gain convenience, reduced spoilage risk, and assurance of order accuracy. Tesco's retail business model, aligned with customer and business needs, leverages these advanced solutions to create value for both the company and its customers, supported by Tesco's strong financial and technological foundation which ensures a strategic fit.

Problem insight:
0.00. The problem which the research would explore would the continuous pressure which Tesco
is facing to deliver grocery products in the United Kingdom. Grocery items like food and drinks
have shorter shelf lives and hence have to be delivered to customers within shortest possible
time. 0.20. The urgency to deliver grocery products within short time spans have necessitated the
retail chains to apply innovative delivery strategies. They can no longer solely depend on their
delivery personnel to deliver products on time.
0.50 Tesco, the British international retail chain has adopted the strategy to deliver groceries
using robots. It can be pointed that though the use of robots has enabled the retail chain to ensure
higher level customer services, it has put immense pressure on the existing resources of the
company.
Portfolio of generated solution ideas:
2.0.. The portfolio of innovative strategies which Tesco has generated to solve the issue of
customer pressure to deliver grocery within short span of time consists of robots and drones. The
robots are used to deliver grocery within short distances while the drones deliver grocery within
long distances.
Solution selection analysis:
3.0 . The two solutions namely, drones for long distances and robots for short distances have
been embedded with certain technologically advanced attributes which have made their selection
pertinent. First of all of robots and drones are embedded with anti-theft software which enable
Tesco offices to maintain track of their locations and their surroundings.

4.0. If any person other than the target consumer tries to open the product container in the robot,
the Tesco personnel would be able to locate the robots as well as drones and direct the police to
the locations. The customers awaiting the delivery of groceries would be accordingly able to
very track the exact positions.
Value proposition benefits:
5.0 The use of robots and drones would create certain benefits or values for both the company
namely, Tesco and customers. First of all, the company would be able to serve more customers
by using the drones and robots. The second value which the innovative delivery strategies would
cause to the company is that since it is able to deliver more products to customers, it is able to
generate higher revenue.
6.0. The third advantage which the use of drones and robots has created for the company is that it
is able to sell more products to customers at a faster pace, which has ushered it with more
liquidity in inventory. The company is able to convert inventory into liquid cash faster, thus
gaining more liquidity.
8.0. As far the customers are concerned, the use of drone and robots have caused value creation
for the former as well. First of all, customer are able to obtain more products at their convenience
without having to visit the Tesco outlets. Secondly, they are able to obtain grocery products
within shorter span of time, which decreases the chances of spoilage of grocery products like
meat products, thus creating value for the same. Thirdly, the anti-theft technology embedded in
the robots and drones ensure the customers get the exactly what they order, thus creating value
for them.

Business model description:
10.0. The business model description of Tesco is retail business model aligned to the needs of the
customers and business needs of the customers. The company receives online orders from the
customers and delivers products as per customers’ requisitions. The retail chain sends drones,
robots and delivery men, whichever is appropriate to ensure timely delivery or products to
customers.
Value proposition development and delivery:
11.0. The delivery of products using drones and robots creates value for both Tesco and
customers.
Financial value capture and strategic fit.
12.0. Tesco is able to capture immense value using drones and robots to delivery products to
customers. The company is strong financially and technologically which has enabled it to
establish strategic fit with these two advanced solutions namely drones and robots.