Digital Business Management and Emerging Technology - A Case Study on Tesco

This report is a case study on Tesco and their digital business management and emerging technology strategies. It covers their e-business model, competitive business strategy, digital marketing strategies, E-CRM model, and more.

Digital Business Management
and Emerging Technology

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Identifying the E business model of TESCO...........................................................................3
2. Analysing the competitive business strategy:..........................................................................4
3. Discussing the digital marketing strategies:............................................................................5
4. Presenting the traffic data in Tesco website:...........................................................................6
5. Identifying the E CRM model:................................................................................................8
6. Cyber security measures in Tesco website:.............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The digital business management helps the firm to simplify various works and manage the
tasks accordingly. The present report is based on Tesco that is largest supermarket in United
Kingdom that sells variety of goods such as clothing, books, electronics, toys and much more.
The study will focus on various digital media strategies that are adopted by the firm and will
provide certain recommendations for future improvement.
Moreover the report will also analyse the firm competitive strategy in relation with its
competitors. Also, customer traffic on the Tesco website will be discussed along with
comparison with one of its competitors. Furthermore, company E CRM model will be
investigated in detail along with certain cyber security issues that need to be considered while
selling the goods online via websites or through special apps.
MAIN BODY
1. Identifying the E business model of TESCO
The main business model that is used by the Tesco is Market portal model that helps in
integrating buyer and suppliers. Moreover, it allows both the business groups to do various
businesses effectively. Also, through use of this model the firm is efficient in handling inventory
and distribution. Through this ecommerce website quoted firm enables the suppliers to know the
relevant information relating to the purchases made by the customer’s on the websites so that
better products can be offered in the future (Albertoni, Elia and Piscitello, 2017). Moreover, E-
business concepts consists the e- business systems, strategies and e -business models. In context
of approaches that are applied by the Tesco are it uses creative content as it tool to show
interesting products along with various features and options. Also, through offering easily mobile
accessible services allowed the firm to stay ahead in the competition. It also uses ecommerce
video for its various products so that customers get the overview of the contents and
specifications and thus individual shopping experience can be enhanced.
Tesco model has gained relative strength against its competitors as it focuses on four major
components (Cagle, Yılmaz and Doğru, 2019). The model brings more feedback from its target
audience so that website can be developed in more efficient manner. Moreover the model is
flexible according to the changing environment condition that will also help to adjust the
components that are set by the quoted firm. However this model is relatively effective for big

supermarkets like Tesco that operates on large scale in United Kingdom but in spite of this it has
certain weakness such as club card feature that captures the customers information on what they
are buying is ineffective as it does not address the question why they are buying. Thus, Tesco
can only evaluate the post purchase behaviour of customers rather than observing the before
purchase captions and opinions of the individual’s (Ares and Varela, 2018). Also, Tesco needs to
carefully analyse the changing behaviour of the customers so that better plan and polices can be
made in the future. Moreover, with the rise of social welfare in the country the quoted firm need
to invest in more activities that are proved to customers in eco -friendly manner. For this purpose
while doing online delivery the firm can use paper bags instead of plastic bags, encourage more
of online payments rather than cash etc. Such activities will not improve the website but will also
enable large customers towards building the good brand image and customer satisfaction so that
better services can be made available in the future. Moreover, Tesco.com should improve its
website by providing certain recommendations that is not only based on past purchases done by
its customers but also according to the current trends and fashion so that better sales can be made
according to all age groups.
2. Analysing the competitive business strategy:
Competitive edge is essential to sustain in business world in the long run. In context of
Tesco it has gained such advantage through selling various products through low cost product
strategy along with offering high quality consumer goods that has led to higher revenues against
some of its biggest rivalries in the UK market. Further, the firm has strong customer base that
allowed the firm to introduce new product line and strategies in spite of entrance of other
multinational companies in the UK market (Dutta and Mandal, 2021). Moreover, competitive
advantage of quoted firm can be linked to value chain approach where in its first component
inbound logistics the firm had maintain the level through considering various choices of
customer in its first place. Also, to stay ahead in competition the firm has launched various
discounts and promotional offers, schemes and reward so that more individuals are happy
shopping with the firm. In the second stage called operations it has ensured that more accurate
ordering systems are been established while in third stage of outbound logistics home delivery of
goods has helped customers to save lot of time. Also, next in service stage it is concerned with
providing additional services along with existing ones and improves various technologies for
further fast processing and delivery system (Isa and et.al. 2021). Thus, through all the effective

methods that are been discussed the firm has able to keep high profit margins for its products and
thus it also helped in enhancing the in store experiences for its customers through heavy
investment policies.
Recommendations:
However, from the above points it is been suggested to the quoted firm that though it is
operating on large scale in UK but need to continuously monitor its market activities so that
required changes and improvements can be made on time. Moreover, it is been suggested to the
quoted firm that it should conduct more research and development activities before launching
any product line in its existing operations to avoid any future losses (Kahn, Inman and Verhoef,
2018) . Such research involves heavy investment and thus if firm find it unsuitable than it need
not waste much resources in operating various product line as it can focus on the existing product
and services. Also it needs to create brand campaigns and apply promotional strategies that are
different from its competitors so as to gain competitive advantage over the rest others.
3. Discussing the digital marketing strategies:
Digital strategies are applied to reach large number of customers within the specific time
period and also to achieve the business goals and objectives. For this purpose it involves that
constant actions are been applied at the right time so that proper improvements can be made.
Furthermore, in case of digital strategies the firm had introduce mobile grocery app that
allows the customers for easy shopping through directly visiting the Tesco website with the use
of bar code scanner. Moreover, the firm is actively encouraging the use of more mobile devices
so that better offers and promotions can be shown to the customers on the Tesco website even
when they are near to any of its stores (Kostyk, Leonhardt and Niculescu, 2021). Such strategies
help the firm to create more awareness among the various market brands and also easy to
persuade customers when they are in need of some goods or services. Also, it has also introduced
click and collect method where the customers can purchase the goods online and collect them
later from the nearest Tesco stores anytime. In this regard it has also allowed the customers self-
service counters where they do not have to wait for longer hours in the queues.
However having certain advantages of using the digital technology there are some
challenges that the quoted firm has to face such as number of people who visited the Tesco
website in day might be very large in number but there are few buyers who actually make the

purchase happen. As such this might reduce the operating efficiency of the firm as these people
would also not provide enough feedback for improvements. Moreover, there are small retailers
who are operating successful in offline stores and thus marketing strategies of such small outlets
might remain unknown to the quoted firm while totally focussing only in digital sales (Niedziela
and Ambroze, 2021). Also, there are more costs involved in hiring and providing training to
employees of Tesco who would be able to operate the digital media platform in much easier and
smooth manner so that maximum benefits can be generated from those regions too where Tesco
stores cannot be opened up easily.
Suggestions:
It is recommended to the Tesco that it should also open the facility of cash on delivery
option so that people who are not having any credit or debit cards can still easily shop with the
firm at times of emergency. Moreover, various discounts coupons offered during the offline
purchases should have an option to be redeemed at Tesco website to avoid any sort of
disappointment among the customers. Also, Tesco should hire professionals to keep regular
check on online inventory of various items so that there is no delay and people are not forced to
buy certain substitutes.
4. Presenting the traffic data in Tesco website:
From the above chart it can be clearly seen that total visit of customers on the Tesco
website in six months is 35.88 million that is much in terms of any other competitor than are
currently operating in the United Kingdom. Moreover, it can be said that such customer base had
been developed by the company overs the years through proper business plan and strategies.

However, it is seen that large amount of customers resides only in United kingdom and is not
other parts of world and thus more awareness need to be created by Tesco through employing
various techniques (Safeer and et.al., 2021). Also, it is leading from other competitors such as
Sainsbury website that has 22.76 million of per visits in total six months. However, bounce rate
of Tesco is little higher (40.69%) in comparison to Sainsbury that means number of visitors only
visited the website but left without continuing forward to other pages on the same website. This
means that people are less interested in looking forward to various products and there
information as they find something better than it. Hence, firm need to make certain efforts to
make the website look more interesting and attractive so that more customers are attracted
towards the product offers and features. This can be through using creative digital media content,
attractive blog posts, pictures, videos, presentations etc.
Also, it can be seen clearly from the above image that is taken through similar.com
website that indicates most of the Tesco potential customers refer to this brand through direct
searches. This means that SEO strategies adopted by the firm are good. However, on the other
hand it can be seen that social media strategies are weak of the firm and hence it need to invest
more time in updating various information on platforms like Facebook, twitter , Instagram etc. so
that people are aware of the brand existence(Nambisan, Siegel and Kenney, 2018).
Moreover Tesco can also send emails to the customers regarding the delivery, offers,
discounts, feedback and much more so that customers could get notified when any product or
services are launched from the quoted firm. Also, Tesco need to focus more in UK market
through various food products that are originally not available in local outlets. It can keep more
of packed and frozen foods that are ready to eat and as such it can be consumed by more
individuals from young generation.
Thus it can be said that customer traffic data helps the firm in analysing the true position in
the market so that better marketing strategies can be developed in the future. Also, overall sales

can determine whether the firm was successful in conquering the particular segment or market.
Moreover, it can be recommended to the quoted firm that it need to focus on niche segment of
society too so that maximum revenues can be generated (Sahut, Iandoli and Teulon, 2021).
Through various digital marketing strategies delivery time also need to be improved so that
goods can be made available to large number of customer through faster delivery.
5. Identifying the E CRM model:
E -CRM strategies defines the goals and then helps in creating roadmaps for change to
process so that it can be made to reality. In context of e commerce business models it can either
be B2B, B2C, C2C and C2B. Moreover, in the context of electronic commerce there can be four
models that are widely used by most of the firms such as IDIC model, QCI model, Payne five
forces model and CRM value chain model (Reddy, 2019). In context of Tesco it currently uses
on demand CRM technology that allows staff of customer service in Tesco to interact with
customers so that understand in better way why people interacted with the business in certain
manner. Moreover, it separates customers according to the expenses that they have made in a day
at stores so that promotional offers can be made accordingly.
This can be further linked to the IDIC model of CRM that focuses on the four main
components: The first one is identify where the firm accomplish its objectives through collecting
data such as name, purchase, addresses at each point or at the time of sale (Four CRM models
that boost customer loyalty, 2021). Hence, the goal is to collect every information from the
customers so that better understanding can be developed. The next stage in this model is
differentiate where customers are segmented into various groups based on value to the
organisation. Further, after this stage next is interact where the firm develop interactions with
its customers so that better services can be provided in the future. Last in this model is customize
where services that are given can be customized based on the needs and expectations of the
individuals.
Also, Tesco uses various posts to influence customers to buy certain goods. Moreover,
such social media links are helpful in launching a successful campaign in any of the festive
seasons so that more people get to know about it and influence others through spread of
information. Also, Tesco social media pages are made public so that people can easily check the
tweets and posts anywhere and at any time of the day. Theses posts are also shown in various
search engines too like yahoo or Google. Further, on all social media accounts of Tesco it ensure

that workers respond to any customer query in very less time and are also accountable for any
future posts and maintains the confidentiality of other people so that safety and security is
ensured.
Suggestion:
It is to be suggested to the quoted firm that even though it is efficient in handling
customer queries and responses on online media channels but should also think that some
negative reviews might decrease the image of the brand and hence digital medium it is effective
to limited extent. Moreover continuous monitoring of marketing media campaign is time
consuming that may decrease the efficiency in offline stores of Tesco. Also, quoted firm need to
update its content from time so that to make it more creative rather than boring.
6. Cyber security measures in Tesco website:
It is very important that security measures are ensured in the website so that people free to
use such websites that are designed by the company for the customer convenience. Moreover
protecting the customer data is first priority in the firm like Tesco where large numbers of
transactions take place in a day. Also, it has keep an eye that software is kept up to date so that
all security updates are shown and also keep a close look on whether the anti-virus protection is
working efficiently or not (Luceri , Sabbadin and Zerbini , 2017). Moreover Tesco suggest that
all users kept strong passwords so that hackers are not able to easily track the information that is
sensitive or important for the users. Also, Cordant service are used by the quoted fir to make
sure that all its 300 stores are safe and secure rom any of the misuse of the third party.
Furthermore, it ensures it users that data collected is only for providing personalizes
services and administering the websites. It also uses various safeguards such as data encryption
and firewalls to keep the data safe. Also, the website will ask for proof of identity before sharing
any personal data with its users. For accessing the information that is been collected by the
Tesco the customers have option of accessing the “subject access request” to see what data is
been collected (Verma and Duggal, 2017). Moreover, it also uses cookies to provide good
experience through browsing the website so that it can be improved in the future.
Recommendations:
It is to be suggested to the firm that two factor authentication must be developed so that
better security can be provided to the customer regarding warning or any alert if there is any
unauthorized transaction that is done in the name of user. Moreover, it needs to hire

professionals so that in case of any emergency the business can take immediate actions without
delay so that brand image can be maintained for the longer run. Also, through emails it can share
security measures that need to be taken before and after any purchase made by the customers.
CONCLUSION
From the above report it can be summarized that digital media is most popular in the current
era as most of the people are ready to buy goods and services that are made easily available
through single click. Also, the study had analysed that e business model that is used by the Tesco
is efficient in attracting lot of customers towards the products of brand and also helped in
generating greater revenues to the firm in comparison to other competitors. Moreover, the
strength and weakness of the quoted firm regarding the e business concept had also identified.
Also, competitive strategy and various digital business strategies have also discussed in detail.
Further, the best strategies of the quoted firm along with certain recommendations had also
presented so that better future plans and policies can be formulated in the future. Moreover, with
the use of similar web website quoted firm position in the market in comparison to Sainsbury and
rest others in UK had also been discussed in detail. Also, report investigated on the company
IDIC CRM model that help the firm to achieve the goals and objectives in efficient manner.
Lastly, various cyber security measures adopted by the Tesco had been discussed.

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