Designing E-Commerce Solutions: Tesco's Business Expansion Plan

This report provides a comprehensive analysis of designing e-commerce solutions, focusing on market potential, current systems, financial implications, and strategic recommendations. It explores opportunities for business expansion in markets like digital entertainment and overseas markets. The report examines Tesco's hybrid e-commerce model, highlighting its online and in-store integration and customer service strategies. It discusses financial considerations such as payment collection, offers, and credit systems. The proposed e-commerce solution emphasizes a user-friendly design, timely product information updates, and secure transactions. The report concludes by assessing the suitability of the proposed solution for Tesco, emphasizing its potential to retain market position and expand into new markets through various offers and a customer-centric approach. The report references several academic sources to support its analysis and recommendations.

LO3: Be able to design e-Commerce solutions
The market potential or opportunities for this future expansion in e-
Commerce:
The company can expand into markets like digital entertainment. It can offer its brand
smartphones and tablets in markets like Malaysia, South Korea, and China, etc. With online
shopping site, more flexibility can be provided to the customers. This will attract more customers
for the company. It has the opportunity to expand overseas in Markets where the competition for
retail grocery stores is less like in Australia. The higher economic growth has paved a way for
the growth of supermarket industry. Also, the increased growth of the economy will increase the
spending of customers. The company will have the opportunity to enter into new markets, earn
more profits, be price stable and have the potential to fight in the competition.
Current e-Commerce systems in use by the company and similar businesses:
A hybrid model is used by the company. For the online shopping, the own products of Tesco
and its own brands are used. Both an online mode as well as stores is opened for providing the
customers all opportunities to shop. If any product is not there online, then it must be there in the
store and vice-versa. If any product is not there on the website and customer wishes to buy it,
then the company provides him an alternative for that. Then some discounts are given too. All
the deliveries are checked properly so that the products are saved from getting contaminated, the
packaging is proper, the seal is not broken, etc. They believe in on time delivery of products and
any delay in delivery is informed to the customer in advance. The company has the policy of free
return, and entire money is returned to the customer. The company tries to give services to the
customers that are better and improved from the previous purchase.
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Financial implications that companies need to be aware of are:
E-commerce is formed so that easy buying and selling can happen. But this business runs only
when it has a lot of customers. Quantity is focused more in this business. For attracting people,
offers are given by the company like ‘buy one get one', bonus cards, free home delivery, etc.
The hybrid model is useful in increasing the sales as well as for increasing the revenues. An offer
like free credit system can be given to the people, but it will be provided as per the credit score
or their payment history to make sure that the money is returned by the customers on time.
Payment collection is an important consideration in this business. Various modes of payments
are provided by the companies like COD, credit or debit card, etc. Free home delivery is
provided by the bonus card.
E-Commerce solution for the company:
The solution makes the business strategy ahead of the competitors; it gives a superior quality
than the competitors, and unique quality of the product is delivered with a new solution. There
will be flexibility in the standard. The information of the product will be updated timely, and the
pages of the site will highlight the products. The site will also clearly display that which product
is unique, available, what offers are applicable to it, etc. After every transaction, the information
of customer will be updated, and there will be security in the system. The e-commerce model
will be simple and efficient. It will be made customizable, and a seamless payment solution will
be offered by the website. Then consistency will be maintained in the branding of products, and
it will be done very professionally. The customers will be attracted from the public pages by the
way of advertising. The customers will be given some credit for their shopping so that they pay
attention to the website.
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Suitability of this solution for the company:
In the market of UK, Tesco is already a well-established brand but if it follows the above
structure, it will be able to retain its position, and it will be able to flourish on the other markets
too. The company needs to make various offers to the customers to expand their business. The
design of the company is very suitable as it is user-friendly and the employees also have the
opportunity to give feedbacks. The web page of the company gives good offers, posts the
upcoming events and fills the pockets of customers with many benefits. Business will further
prosper due to the credit policy of the company. Though it is a bit risky but in the long term, the
acceptance is quite large.
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References:
Prasad, B. (2005). EDITORIAL: Intelligent E-Commerce. Journal Of Intelligent Systems, 14(1),
1-2. http://dx.doi.org/10.1515/jisys.2005.14.1.1
Shah, B. (2001). Some Systems Engineering Considerations for e-Commerce Projects. INSIGHT,
3(4), 23-26. http://dx.doi.org/10.1002/inst.20013423
Glover, J. & Ijiri, Y. (2002). "Revenue Accounting" in the Age of E-Commerce: A Framework
for Conceptual, Analytical, and Exchange Rate Considerations. Journal Of International
Financial Management And Accounting, 13(1), 32-72. http://dx.doi.org/10.1111/1467-
646x.00078
Sandy, W. (1990). Link Your Business Plan to a Performance Plan. Journal Of Business
Strategy, 11(6), 4-8. http://dx.doi.org/10.1108/eb039381
Ratnasingam, P. (2008). The Impact of E-Commerce Customer Relationship Management in
Business-to-Consumer E-Commerce. Journal Of Electronic Commerce In Organizations, 6(4),
30-46. http://dx.doi.org/10.4018/jeco.2008100103
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